Garrett Motion (NASDAQ:GTX) Reaches New 1-Year High - Here's What Happened

Key Points

• Garrett Motion hit a new 52-week high on Monday, trading as high as $35.18 and closing near $34.85, up about 2.1% on the day.
• Analysts remain broadly positive, with recent target hikes and upgrades helping sentiment; the stock currently carries a consensus “Moderate Buy” and an average price target of $31.83.
• Recent fundamentals and shareholder returns have been strong, as the company beat quarterly EPS and revenue estimates, grew revenue 12.2% year over year, and paid a quarterly dividend of $0.08 per share.

Garrett Motion Inc. (NASDAQ:GTX - Get Free Report) reached a new 52-week high on Monday . The company traded as high as $35.18 and last traded at $34.85, with a volume of 71858 shares traded. The stock had previously closed at $34.32.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on GTX. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $24.00 price objective on shares of Garrett Motion in a research report on Friday, May 1st. BWS Financial raised their price target on Garrett Motion from $32.00 to $42.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. Zacks Research upgraded Garrett Motion from a "hold" rating to a "strong-buy" rating in a report on Friday, May 22nd. Freedom Capital cut Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. Finally, Stifel Nicolaus increased their price objective on Garrett Motion from $29.00 to $36.00 and gave the stock a "buy" rating in a report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $31.83.

Garrett Motion Trading Up 2.1%

The company has a 50 day moving average of $28.12 and a 200 day moving average of $21.75. The firm has a market cap of $6.56 billion, a price-to-earnings ratio of 20.52, a price-to-earnings-growth ratio of 1.08 and a beta of 0.79.

Garrett Motion (NASDAQ:GTX - Get Free Report) last posted its quarterly earnings data on Friday, May 1st. The company reported $0.49 earnings per share 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 company had revenue of $985.00 million during the quarter, compared to analyst estimates of $917.23 million. The business's revenue was up 12.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Garrett Motion Inc. will post 1.83 EPS for the current fiscal year.

Garrett Motion Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a dividend of $0.08 per share. The ex-dividend date was Monday, June 1st. This represents a $0.32 annualized dividend and a yield of 0.9%. Garrett Motion's payout ratio is currently 18.71%.

Insiders Place Their Bets

In related news, SVP Mark Albert Rodrigues sold 10,516 shares of Garrett Motion stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $33.82, for a total transaction of $355,651.12. Following the completion of the transaction, the senior vice president owned 83,178 shares in the company, valued at approximately $2,813,079.96. This trade represents a 11.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Thierry Mabru sold 70,000 shares of the business's stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $33.00, for a total value of $2,310,000.00. Following the transaction, the senior vice president directly owned 147,956 shares in the company, valued at approximately $4,882,548. This trade represents a 32.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 207,694 shares of company stock valued at $6,714,248 in the last quarter. 1.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. JPMorgan Chase & Co. grew its stake in shares of Garrett Motion by 45.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,705,484 shares of the company's stock valued at $23,229,000 after buying an additional 529,949 shares during the period. Comerica Bank increased its stake in Garrett Motion by 22.0% during the fourth quarter. Comerica Bank now owns 251,371 shares of the company's stock worth $4,381,000 after acquiring an additional 45,370 shares during the last quarter. Wesbanco Bank Inc. increased its stake in Garrett Motion by 75.0% during the fourth quarter. Wesbanco Bank Inc. now owns 105,034 shares of the company's stock worth $1,831,000 after acquiring an additional 45,000 shares during the last quarter. Yorkville Advisors Global LP purchased a new position in shares of Garrett Motion in the 3rd quarter worth about $11,168,000. Finally, Counterpoint Mutual Funds LLC lifted its stake in shares of Garrett Motion by 323.3% in the 3rd quarter. Counterpoint Mutual Funds LLC now owns 172,018 shares of the company's stock valued at $2,343,000 after purchasing an additional 131,380 shares in the last quarter. 86.27% of the stock is currently owned by institutional investors.

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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