Garrett Motion (NASDAQ:GTX) Sets New 1-Year High - Should You Buy?

Key Points

• Garrett Motion shares hit a new 52-week high, trading as high as $29.89 on Wednesday, well above its recent closing price of $29.14. The move comes despite the stock already having risen sharply above its 50-day and 200-day moving averages.
• Recent earnings topped expectations, with the company reporting Q1 EPS of $0.49 versus a $0.43 consensus and revenue of $985 million versus an expected $917.23 million. Revenue also grew 12.2% year over year, and analysts now expect full-year EPS of 1.83.
• Analysts and institutions remain broadly supportive, with a consensus rating of “Moderate Buy” and a price target of $22.80, though recent analyst views have been mixed. Institutional investors own 86.27% of the stock, and Garrett Motion also announced a quarterly dividend of $0.08 per share.

Shares of Garrett Motion Inc. (NASDAQ:GTX - Get Free Report) reached a new 52-week high during trading on Wednesday . The company traded as high as $29.89 and last traded at $29.57, with a volume of 3712619 shares. The stock had previously closed at $29.14.

Wall Street Analyst Weigh In

GTX has been the subject of a number of research analyst reports. Weiss Ratings initiated coverage on Garrett Motion in a report on Wednesday, April 29th. They set a "buy (b)" rating for the company. BWS Financial upped their price objective on Garrett Motion from $22.00 to $32.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $24.00 price objective on shares of Garrett Motion in a report on Friday, May 1st. Finally, Freedom Capital downgraded Garrett Motion from a "strong-buy" rating to a "hold" rating in a report on Monday, May 4th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $22.80.

Garrett Motion Stock Performance

The stock has a market capitalization of $5.54 billion, a price-to-earnings ratio of 17.29, a P/E/G ratio of 0.97 and a beta of 0.70. The firm has a fifty day moving average of $20.05 and a 200-day moving average of $18.62.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its quarterly earnings results on Friday, May 1st. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.06. The firm had revenue of $985.00 million during the quarter, compared to the consensus estimate of $917.23 million. Garrett Motion had a negative return on equity of 42.77% and a net margin of 9.29%.Garrett Motion's quarterly revenue was up 12.2% on a year-over-year basis. On average, analysts predict that Garrett Motion Inc. will post 1.83 EPS for the current year.

Garrett Motion Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be paid a dividend of $0.08 per share. The ex-dividend date is Monday, June 1st. This represents a $0.32 annualized dividend and a dividend yield of 1.1%. Garrett Motion's dividend payout ratio (DPR) is currently 18.71%.

Insider Activity

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

Institutional Trading of Garrett Motion

Several institutional investors have recently added to or reduced their stakes in the stock. Fuller & Thaler Asset Management Inc. acquired a new stake in Garrett Motion in the fourth quarter valued at $180,383,000. William Blair Investment Management LLC raised its holdings in Garrett Motion by 51.0% in the third quarter. William Blair Investment Management LLC now owns 7,715,824 shares of the company's stock valued at $105,090,000 after acquiring an additional 2,605,296 shares in the last quarter. LSV Asset Management raised its holdings in Garrett Motion by 45.8% in the fourth quarter. LSV Asset Management now owns 6,235,408 shares of the company's stock valued at $108,683,000 after acquiring an additional 1,958,808 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in 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 in the last quarter. Finally, Marshall Wace LLP grew its stake in Garrett Motion by 85.9% in the fourth quarter. Marshall Wace LLP now owns 4,473,196 shares of the company's stock worth $77,968,000 after purchasing an additional 2,067,264 shares in the last quarter. 86.27% of the stock is owned by institutional investors and hedge funds.

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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