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

Key Points

• Garrett Motion hit a new 52-week high, trading as high as $35.80 and closing near that level, extending a strong rally supported by shares trading well above both its 50-day and 200-day moving averages.
• Recent earnings were solid: the company reported EPS of $0.49 versus the $0.43 estimate and revenue of $985 million, topping expectations and rising 12.2% year over year.
• Wall Street sentiment remains constructive, with multiple analysts issuing buy/overweight ratings and several raising price targets, though the average target of $31.83 is still below the current share price.

Garrett Motion Inc. (NASDAQ:GTX - Get Free Report) shares hit a new 52-week high on Tuesday . The stock traded as high as $35.80 and last traded at $35.7870, with a volume of 342621 shares. The stock had previously closed at $35.08.

Analyst Ratings Changes

Several brokerages have recently commented on GTX. Weiss Ratings assumed coverage on Garrett Motion in a research note on Wednesday, April 29th. They set a "buy (b)" rating on the stock. Royal Bank Of Canada set a $42.00 price target on Garrett Motion in a research note on Thursday, May 21st. Freedom Capital cut shares of Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. JPMorgan Chase & Co. raised their target price on shares of Garrett Motion from $30.00 to $33.00 and gave the company an "overweight" rating in a report on Thursday, May 14th. Finally, BWS Financial raised their price objective on shares of Garrett Motion from $32.00 to $42.00 and gave the stock a "buy" rating in a research note on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $31.83.

Garrett Motion Trading Up 2.1%

The stock has a market capitalization of $6.71 billion, a PE ratio of 20.97, a PEG ratio of 1.10 and a beta of 0.79. The company's 50 day simple moving average is $29.94 and its 200 day simple moving average is $22.50.

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 (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.06. The business had revenue of $985.00 million for the quarter, compared to analysts' expectations of $917.23 million. Garrett Motion had a negative return on equity of 42.77% and a net margin of 9.29%.The company's revenue for the quarter was up 12.2% compared to the same quarter last year. As a group, analysts predict that Garrett Motion Inc. will post 1.83 EPS for the current year.

Garrett Motion Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were issued a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Monday, June 1st. Garrett Motion's dividend 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, SVP Thierry Mabru sold 70,000 shares of the company'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 transaction of $2,310,000.00. Following the transaction, the senior vice president directly owned 147,956 shares of the company's stock, valued at $4,882,548. This trade represents a 32.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 213,834 shares of company stock valued at $6,918,710 over the last three months. Insiders own 1.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Arete Wealth Advisors LLC acquired a new stake in Garrett Motion in the 1st quarter valued at $224,000. Janus Henderson Group PLC raised its holdings in shares of Garrett Motion by 22.2% during the 1st quarter. Janus Henderson Group PLC now owns 78,600 shares of the company's stock valued at $1,429,000 after buying an additional 14,300 shares during the period. California State Teachers Retirement System lifted its position in Garrett Motion by 50.2% during the 1st quarter. California State Teachers Retirement System now owns 202,555 shares of the company's stock worth $3,680,000 after acquiring an additional 67,740 shares in the last quarter. The Manufacturers Life Insurance Company grew its position in 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 acquiring an additional 2,198 shares in the last quarter. 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 owned by institutional investors and hedge funds.

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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