Garrett Motion (NASDAQ:GTX) Rating Lowered to Hold at Freedom Capital

Key Points

• Freedom Capital downgraded Garrett Motion from "strong-buy" to "hold," though the street consensus remains a Moderate Buy with an average price target of $22.80.
• The company beat quarterly estimates, reporting $0.49 EPS (vs. $0.43 expected) and $985M in revenue (vs. $917.2M expected), with revenue up 12.2% year-over-year.
• There has been notable insider selling (337,000 shares worth ~$6.84M last quarter) even as institutional ownership is very high at about 86.27%.

Garrett Motion (NASDAQ:GTX - Get Free Report) was downgraded by Freedom Capital from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Several other equities analysts have also recently commented on GTX. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $24.00 target price on shares of Garrett Motion in a research report on Friday. Weiss Ratings started coverage on shares of Garrett Motion in a report on Wednesday, April 29th. They issued a "buy (b)" rating on the stock. Finally, BWS Financial lifted their price target on shares of Garrett Motion from $22.00 to $32.00 and gave the stock a "buy" rating in a report on Thursday. Five investment analysts have rated the stock with a Buy rating and three have assigned 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 target price of $22.80.

Garrett Motion Stock Performance

Shares of NASDAQ GTX opened at $25.00 on Monday. Garrett Motion has a fifty-two week low of $9.57 and a fifty-two week high of $26.38. The stock has a market cap of $4.68 billion, a price-to-earnings ratio of 14.62, a PEG ratio of 1.07 and a beta of 0.70. The firm's 50-day simple moving average is $19.08 and its 200 day simple moving average is $17.98.

Garrett Motion (NASDAQ:GTX - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.43 by $0.06. Garrett Motion had a net margin of 9.29% and a negative return on equity of 42.77%. The firm had revenue of $985.00 million for the quarter, compared to analysts' expectations of $917.23 million. The business's quarterly revenue was up 12.2% on a year-over-year basis. On average, sell-side analysts predict that Garrett Motion will post 1.75 EPS for the current year.

Insider Buying and Selling

In related news, Director Julia Steyn sold 17,000 shares of Garrett Motion stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $19.86, for a total value of $337,620.00. Following the completion of the transaction, the director directly owned 50,233 shares in the company, valued at approximately $997,627.38. The trade was a 25.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Daniel Deiro sold 20,000 shares of Garrett Motion stock in a transaction that occurred on Thursday, February 26th. The shares were sold at an average price of $20.29, for a total transaction of $405,800.00. Following the completion of the transaction, the senior vice president owned 160,994 shares of the company's stock, valued at $3,266,568.26. This represents a 11.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 337,000 shares of company stock valued at $6,839,290. 1.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. bought a new position in shares of Garrett Motion in the fourth quarter worth $180,383,000. LSV Asset Management bought a new position in shares of Garrett Motion in the third quarter worth $58,247,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of Garrett Motion by 170.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 5,139,439 shares of the company's stock worth $89,580,000 after purchasing an additional 3,241,952 shares during the period. Merewether Investment Management LP bought a new position in shares of Garrett Motion in the third quarter worth $40,590,000. Finally, BlueCrest Capital Management Ltd bought a new position in shares of Garrett Motion in the third quarter worth $36,539,000. 86.27% of the stock is currently owned by hedge funds and other institutional investors.

About Garrett Motion

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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