Garrett Motion (NASDAQ:GTX) Reaches New 1-Year High - Still a Buy?

Key Points

• Reached a new 52‑week high: GTX traded as high as $27.39 (last $26.95) on heavy volume, with the 50‑day and 200‑day moving averages at $19.38 and $18.17 respectively, signaling strong recent momentum.
• Earnings beat and solid growth: Q1 EPS of $0.49 topped estimates ($0.43) and revenue rose 12.2% to $985M; the shares trade at a P/E of 15.76 and PEG of 0.87 on a $5.04B market cap.
• Mixed sentiment and insider activity: Analysts hold a consensus "Moderate Buy" (five Buys, three Holds) with an average target of $22.80—below current levels—while insiders sold ~337,000 shares last quarter even as institutional ownership stands at 86.27%.

Garrett Motion Inc. (NASDAQ:GTX - Get Free Report)'s share price hit a new 52-week high on Thursday . The company traded as high as $27.39 and last traded at $26.95, with a volume of 4333212 shares changing hands. The stock had previously closed at $26.14.

Wall Street Analyst Weigh In

GTX has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $24.00 price target on shares of Garrett Motion in a report on Friday, May 1st. Weiss Ratings assumed coverage on shares of Garrett Motion in a research note on Wednesday, April 29th. They issued a "buy (b)" rating on the stock. Freedom Capital cut shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday. Finally, BWS Financial raised their price objective on shares of Garrett Motion from $22.00 to $32.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Garrett Motion presently has a consensus rating of "Moderate Buy" and an average price target of $22.80.

Garrett Motion Price Performance

The stock has a market capitalization of $5.04 billion, a P/E ratio of 15.76, a PEG ratio of 0.87 and a beta of 0.70. The business's 50 day simple moving average is $19.38 and its 200-day simple moving average is $18.17.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its quarterly earnings data on Friday, May 1st. 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 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 firm's revenue was up 12.2% on a year-over-year basis. Research analysts anticipate that Garrett Motion Inc. will post 1.83 earnings per share for the current fiscal year.

Garrett Motion Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Monday, June 1st. Garrett Motion's dividend payout ratio (DPR) is currently 18.71%.

Insider Activity

In other news, CEO Olivier Rabiller sold 144,000 shares of the business's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $20.32, for a total value of $2,926,080.00. Following the completion of the transaction, the chief executive officer owned 905,546 shares of the company's stock, valued at $18,400,694.72. The trade was a 13.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Daniel Deiro sold 20,000 shares of the business's stock in a transaction 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 directly owned 160,994 shares of the company's stock, valued at $3,266,568.26. This trade represents a 11.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 337,000 shares of company stock valued at $6,839,290 in the last quarter. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Garrett Motion

Several institutional investors and hedge funds have recently made changes to their positions in the company. Jennison Associates LLC grew its holdings in shares of Garrett Motion by 9.3% in the 1st quarter. Jennison Associates LLC now owns 47,968 shares of the company's stock valued at $872,000 after buying an additional 4,069 shares during the period. Allspring Global Investments Holdings LLC grew its holdings in shares of Garrett Motion by 15.1% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 1,339,741 shares of the company's stock valued at $24,919,000 after buying an additional 176,184 shares during the period. Bank of New York Mellon Corp grew its holdings in shares of Garrett Motion by 6.5% in the 1st quarter. Bank of New York Mellon Corp now owns 672,991 shares of the company's stock valued at $12,228,000 after buying an additional 41,195 shares during the period. Hillsdale Investment Management Inc. grew its holdings in shares of Garrett Motion by 3.7% in the 1st quarter. Hillsdale Investment Management Inc. now owns 597,457 shares of the company's stock valued at $10,856,000 after buying an additional 21,507 shares during the period. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its holdings in shares of Garrett Motion by 2.6% in the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 38,895 shares of the company's stock valued at $707,000 after buying an additional 995 shares during the period. Institutional investors and hedge funds own 86.27% of the company's stock.

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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