Garrett Motion (NASDAQ:GTX) Sets New 52-Week High - Still a Buy?

Key Points

• Garrett Motion hit a new 52-week high of $34.42, extending a strong recent run as the stock traded above both its 50-day and 200-day moving averages.
• Wall Street sentiment is broadly positive, with the stock carrying a Moderate Buy consensus rating and an average price target of $31.83, though some firms have recently raised targets as high as $42.
• The company continues to show solid operating performance, beating earnings and revenue estimates last quarter, and it recently announced a quarterly dividend of $0.08 per share.

Garrett Motion Inc. (NASDAQ:GTX - Get Free Report) hit a new 52-week high during trading on Friday . The stock traded as high as $34.42 and last traded at $34.3210, with a volume of 1160221 shares trading hands. The stock had previously closed at $33.40.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. JPMorgan Chase & Co. lifted their target price on shares of Garrett Motion from $30.00 to $33.00 and gave the stock an "overweight" rating in a research report on Thursday, May 14th. Weiss Ratings assumed coverage on shares of Garrett Motion in a research report on Wednesday, April 29th. They issued a "buy (b)" rating for the company. Freedom Capital lowered shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 4th. Royal Bank Of Canada set a $42.00 price objective on shares of Garrett Motion in a research report on Thursday, May 21st. Finally, Zacks Research raised shares of Garrett Motion from a "hold" rating to a "strong-buy" rating in a research report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $31.83.

Garrett Motion Stock Up 2.1%

The business's fifty day moving average is $26.25 and its 200-day moving average is $21.00. The stock has a market capitalization of $6.38 billion, a PE ratio of 19.95, a P/E/G ratio of 1.00 and a beta of 0.79.

Garrett Motion (NASDAQ:GTX - Get Free Report) last released its earnings results 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 during the quarter, compared to the consensus estimate of $917.23 million. Garrett Motion'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 business 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 yield of 0.9%. The ex-dividend date is Monday, June 1st. Garrett Motion's payout ratio is presently 18.71%.

Insider Activity at Garrett Motion

In related news, Director Daniel A. Ninivaggi sold 17,178 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $31.22, for a total value of $536,297.16. Following the completion of the sale, the director directly owned 124,885 shares in the company, valued at approximately $3,898,909.70. The trade was a 12.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sean Deason sold 110,000 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $31.93, for a total transaction of $3,512,300.00. Following the sale, the chief financial officer owned 261,909 shares of the company's stock, valued at approximately $8,362,754.37. This represents a 29.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 197,178 shares of company stock worth $6,358,597. 1.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Garrett Motion

Several institutional investors have recently bought and sold shares of the business. Arete Wealth Advisors LLC purchased a new stake in Garrett Motion during the first quarter worth approximately $224,000. Janus Henderson Group PLC boosted its stake in shares of Garrett Motion by 22.2% in the first quarter. Janus Henderson Group PLC now owns 78,600 shares of the company's stock valued at $1,429,000 after purchasing an additional 14,300 shares during the period. California State Teachers Retirement System boosted its stake in shares of Garrett Motion by 50.2% in the first quarter. California State Teachers Retirement System now owns 202,555 shares of the company's stock valued at $3,680,000 after purchasing an additional 67,740 shares during the period. The Manufacturers Life Insurance Company boosted its stake in shares of Garrett Motion by 2.5% in the first quarter. The Manufacturers Life Insurance Company now owns 88,693 shares of the company's stock valued at $1,612,000 after purchasing an additional 2,198 shares during the period. Finally, Quantinno Capital Management LP boosted its stake in shares of Garrett Motion by 25.7% in the first quarter. Quantinno Capital Management LP now owns 16,703 shares of the company's stock valued at $303,000 after purchasing an additional 3,415 shares during the period. 86.27% of the stock is currently owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.