Garrett Motion (NASDAQ:GTX) Hits New 1-Year High After Strong Earnings

Key Points

• Shares hit a new 52‑week high at about $25.77 after Q1 results beat expectations—GAAP EPS of $0.49 vs. $0.43 consensus and revenue up ~12% to $985M—and management raised its 2026 outlook, sending the stock roughly 25% higher.
• The board declared a quarterly dividend of $0.08 (annualized $0.32, ~1.2% yield) and highlighted operational wins, including new light‑vehicle turbo programs and EV‑related awards (e.g., oil‑free compressors for battery cooling) that support future growth.
• Notable insider selling occurred (about 337,000 shares sold in the past 90 days, including CEO sales), and while the consensus rating is a Moderate Buy, the average analyst price target (~$20.80) trails the current share price even as some brokers lift targets to as high as $32.

Garrett Motion Inc. (NASDAQ:GTX - Get Free Report)'s share price hit a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $25.77 and last traded at $25.61, with a volume of 7340212 shares traded. The stock had previously closed at $20.49.

The company reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.06. Garrett Motion had a negative return on equity of 39.65% and a net margin of 8.65%.The firm's revenue for the quarter was up 12.2% compared to the same quarter last year.

Garrett Motion Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be issued a $0.08 dividend. The ex-dividend date of this dividend is Monday, June 1st. This represents a $0.32 annualized dividend and a dividend yield of 1.2%. Garrett Motion's payout ratio is presently 21.05%.

Key Headlines Impacting Garrett Motion

Here are the key news stories impacting Garrett Motion this week:

• Positive Sentiment: Q1 results beat estimates: GAAP EPS $0.49 vs. $0.43 consensus and revenue rose ~12% to $985M; net income $95M and adjusted EBIT margin ~15.3%, signaling improving profitability and topline momentum. Globe Newswire: Q1 Results
• Positive Sentiment: Company raised its full-year 2026 outlook (management described a higher outlook in the release), which, together with the beat, supports investor confidence in forward earnings and demand. Outlook Raise
• Positive Sentiment: Operational wins: multiple new light-vehicle turbo programs, commercial vehicle and industrial awards (including E-Powertrain and E‑Cooling production awards), which support future revenue and EV-related growth opportunities. Business Highlights
• Positive Sentiment: Board declared a quarterly cash dividend of $0.08/share (record June 1, payable June 15), providing income to shareholders and signaling confidence in cash flow (annualized yield ~1.2%).
• Positive Sentiment: Product/market development: coverage noting Garrett’s oil‑free compressors entering battery cooling units could expand addressable market in EV battery thermal management. Yahoo: Oil-Free Compressors
• Neutral Sentiment: FY2026 revenue guidance was reiterated/updated around a $3.6–$3.9B range (close to consensus ~$3.7B), so while guidance is healthy it’s not dramatically above street expectations; investors will watch margin and EPS translation.
• Negative Sentiment: Some legacy metric concerns: the company still shows a negative return on equity historically (~-38.8% noted in reports), which highlights past capital structure/earnings issues investors may scrutinize despite recent improvement.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on GTX. Freedom Capital raised shares of Garrett Motion to a "strong-buy" rating in a report on Monday, April 6th. Weiss Ratings began coverage on shares of Garrett Motion in a report on Wednesday. They issued a "buy (b)" rating on the stock. Finally, BWS Financial reaffirmed a "buy" rating and issued a $32.00 target price (up from $22.00) on shares of Garrett Motion in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Garrett Motion presently has a consensus rating of "Moderate Buy" and an average price target of $20.80.

Insider Buying and Selling

In related news, CEO Olivier Rabiller sold 144,000 shares of the business's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $20.32, for a total transaction of $2,926,080.00. Following the sale, the chief executive officer owned 905,546 shares of the company's stock, valued at approximately $18,400,694.72. The trade was a 13.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Julia Steyn sold 17,000 shares of the business's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $19.86, for a total transaction of $337,620.00. Following the sale, the director directly owned 50,233 shares in the company, valued at approximately $997,627.38. This represents a 25.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 337,000 shares of company stock valued at $6,839,290. Corporate insiders own 1.10% of the company's stock.

Institutional Trading of Garrett Motion

Institutional investors have recently added to or reduced their stakes in the stock. Baron Wealth Management LLC grew its holdings in shares of Garrett Motion by 3.3% during the first quarter. Baron Wealth Management LLC now owns 27,324 shares of the company's stock worth $496,000 after buying an additional 878 shares in the last quarter. Global Retirement Partners LLC grew its holdings in shares of Garrett Motion by 156.7% during the fourth quarter. Global Retirement Partners LLC now owns 1,589 shares of the company's stock worth $28,000 after buying an additional 970 shares in the last quarter. D Orazio & Associates Inc. grew its holdings in shares of Garrett Motion by 7.2% during the third quarter. D Orazio & Associates Inc. now owns 15,101 shares of the company's stock worth $206,000 after buying an additional 1,015 shares in the last quarter. Spire Wealth Management grew its holdings in shares of Garrett Motion by 971.2% during the fourth quarter. Spire Wealth Management now owns 1,489 shares of the company's stock worth $26,000 after buying an additional 1,350 shares in the last quarter. Finally, Blue Trust Inc. grew its holdings in shares of Garrett Motion by 10.6% during the first quarter. Blue Trust Inc. now owns 14,345 shares of the company's stock worth $261,000 after buying an additional 1,376 shares in the last quarter. Hedge funds and other institutional investors own 86.27% of the company's stock.

Garrett Motion Stock Up 25.0%

The firm has a market capitalization of $4.82 billion, a PE ratio of 16.85, a P/E/G ratio of 0.86 and a beta of 0.44. The business's fifty day moving average price is $19.08 and its 200 day moving average price is $17.90.

Garrett Motion Company Profile

Garrett Motion Inc is a technology leader specializing in the design, development and manufacture of turbocharging systems and related technologies for the global automotive industry. Its product portfolio includes conventional exhaust gas turbochargers, variable-geometry turbochargers, electric and e-boost turbochargers, as well as electronic actuators, sensors and thermal management systems. The company’s solutions are engineered to improve engine efficiency, reduce emissions and support automakers’ efforts to meet evolving regulatory standards for fuel economy and air quality.

Garrett Motion traces its roots to the founding of AiResearch by Cliff Garrett in 1936, a pioneer in aircraft and automotive turbocharging technologies.

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