Garrett Motion (NASDAQ:GTX) Reaches New 52-Week High on Analyst Upgrade

Key Points

• Garrett Motion shares hit a new 52-week high after BWS Financial raised its price target from $32 to $42 and reiterated a buy rating. The stock traded as high as $32.51, well above its prior close of $30.70.
• Analyst sentiment remains generally positive, with five Buy ratings and three Hold ratings, leading to a Moderate Buy consensus and an average price target of $29.80. Recent updates also included higher targets from Stifel Nicolaus and JPMorgan.
• The company reported better-than-expected first-quarter results, with EPS of $0.49 versus the $0.43 consensus and revenue of $985 million, up 12.2% year over year. Garrett Motion also announced a quarterly dividend of $0.08 per share.

Shares of Garrett Motion Inc. (NASDAQ:GTX - Get Free Report) hit a new 52-week high during trading on Thursday after BWS Financial raised their price target on the stock from $32.00 to $42.00. BWS Financial currently has a buy rating on the stock. Garrett Motion traded as high as $32.51 and last traded at $32.6640, with a volume of 1007412 shares trading hands. The stock had previously closed at $30.70.

A number of other equities analysts also recently commented on the stock. Weiss Ratings started coverage on shares of Garrett Motion in a research note on Wednesday, April 29th. They set a "buy (b)" rating on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $24.00 price target on shares of Garrett Motion in a research note on Friday, May 1st. Stifel Nicolaus lifted their price target on shares of Garrett Motion from $29.00 to $36.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Freedom Capital downgraded shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Garrett Motion from $30.00 to $33.00 and gave the stock an "overweight" rating in a research note on Thursday, May 14th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $29.80.

Insider Buying and Selling at Garrett Motion

In other news, CEO Olivier Rabiller sold 144,000 shares of Garrett Motion stock in a transaction dated 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 directly 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Daniel A. Ninivaggi sold 17,178 shares of Garrett Motion stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $31.22, for a total transaction of $536,297.16. Following the completion of the transaction, the director directly owned 124,885 shares of the company's stock, valued at $3,898,909.70. This trade represents a 12.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 354,178 shares of company stock valued at $7,375,587. Corporate insiders own 1.10% of the company's stock.

Institutional Trading of Garrett Motion

Several hedge funds have recently bought and sold shares of GTX. Cullen Frost Bankers Inc. lifted its position in Garrett Motion by 7,110.0% in the 4th quarter. Cullen Frost Bankers Inc. now owns 1,442 shares of the company's stock valued at $25,000 after purchasing an additional 1,422 shares during the last quarter. Spire Wealth Management lifted its position in Garrett Motion by 971.2% in the 4th quarter. Spire Wealth Management now owns 1,489 shares of the company's stock valued at $26,000 after purchasing an additional 1,350 shares during the last quarter. Global Retirement Partners LLC lifted its position in Garrett Motion by 156.7% in the 4th quarter. Global Retirement Partners LLC now owns 1,589 shares of the company's stock valued at $28,000 after purchasing an additional 970 shares during the last quarter. TD Waterhouse Canada Inc. lifted its position in Garrett Motion by 1,422.3% in the 4th quarter. TD Waterhouse Canada Inc. now owns 1,705 shares of the company's stock valued at $30,000 after purchasing an additional 1,593 shares during the last quarter. Finally, Jones Financial Companies Lllp bought a new stake in Garrett Motion in the 1st quarter valued at about $42,000. 86.27% of the stock is currently owned by institutional investors.

Garrett Motion Trading Up 6.4%

The company has a market capitalization of $6.12 billion, a P/E ratio of 19.10, a P/E/G ratio of 0.99 and a beta of 0.70. The business's 50-day simple moving average is $21.46 and its 200 day simple moving average is $19.22.

Garrett Motion (NASDAQ:GTX - Get Free Report) last released its earnings results on Friday, May 1st. The company reported $0.49 EPS for the quarter, topping 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 business had revenue of $985.00 million for the quarter, compared to the consensus estimate of $917.23 million. The firm's revenue was up 12.2% compared to the same quarter last year. As a group, sell-side analysts predict that Garrett Motion Inc. will post 1.83 EPS for the current fiscal year.

Garrett Motion Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Monday, June 1st. Garrett Motion's payout ratio is presently 18.71%.

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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