Garrett Motion (NYSE:GTX) Issues Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Garrett Motion reported $0.38 earnings per share for the quarter, exceeding analysts' expectations of $0.34 EPS and showing a 9.2% revenue increase year-over-year.
• Despite a negative return on equity of 38.75%, the company's stock price rose to $15.38 following the earnings announcement.
• Insider trading activity saw significant selling, with major shareholders offloading over 11 million shares in recent months, reflecting a combined value of approximately $145.7 million.

Garrett Motion (NYSE:GTX - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.04, Briefing.com reports. Garrett Motion had a negative return on equity of 38.75% and a net margin of 8.12%.The company's revenue was up 9.2% on a year-over-year basis. During the same period last year, the company posted $0.24 earnings per share. Garrett Motion updated its FY 2025 guidance to EPS.

Garrett Motion Stock Performance

Shares of Garrett Motion stock traded up $2.87 during midday trading on Thursday, reaching $15.38. 2,111,954 shares of the company's stock traded hands, compared to its average volume of 2,253,415. The company has a market cap of $3.10 billion, a PE ratio of 12.14 and a beta of 0.37. The stock has a 50 day moving average of $13.16 and a 200-day moving average of $11.60. Garrett Motion has a 12 month low of $7.01 and a 12 month high of $15.70.

Insider Buying and Selling

In other Garrett Motion news, major shareholder Cyrus Capital Partners, L.P. sold 1,300,000 shares of the stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $13.00, for a total value of $16,900,000.00. Following the completion of the transaction, the insider owned 21,128,348 shares in the company, valued at approximately $274,668,524. This represents a 5.80% 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 this link. Also, insider Centerbridge Credit Partners M sold 9,000,000 shares of the stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $12.27, for a total value of $110,430,000.00. Following the completion of the transaction, the insider owned 4,740,569 shares of the company's stock, valued at approximately $58,166,781.63. This trade represents a 65.50% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 11,685,545 shares of company stock valued at $145,663,491. 0.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Garrett Motion

Several institutional investors have recently modified their holdings of GTX. Jones Financial Companies Lllp purchased a new stake in shares of Garrett Motion during the first quarter valued at $42,000. Jane Street Group LLC boosted its position in shares of Garrett Motion by 641.7% during the first quarter. Jane Street Group LLC now owns 90,919 shares of the company's stock valued at $761,000 after buying an additional 78,661 shares during the last quarter. Cetera Investment Advisers purchased a new stake in shares of Garrett Motion during the second quarter valued at $121,000. Legal & General Group Plc boosted its position in shares of Garrett Motion by 30.4% during the second quarter. Legal & General Group Plc now owns 97,486 shares of the company's stock valued at $1,024,000 after buying an additional 22,727 shares during the last quarter. Finally, Prudential Financial Inc. purchased a new stake in shares of Garrett Motion during the second quarter valued at $225,000. 86.27% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have weighed in on GTX. BNP Paribas Exane started coverage on Garrett Motion in a report on Wednesday, July 16th. They set an "outperform" rating and a $14.00 target price for the company. Zacks Research raised Garrett Motion from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 1st. BNP Paribas started coverage on Garrett Motion in a report on Wednesday, July 16th. They set an "outperform" rating for the company. BWS Financial boosted their price objective on Garrett Motion from $14.00 to $18.00 and gave the stock a "buy" rating in a report on Tuesday, September 30th. Finally, Stifel Nicolaus dropped their target price on Garrett Motion from $17.50 to $17.00 and set a "buy" rating for the company in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $15.75.

Garrett Motion Company Profile

Garrett Motion Inc, together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors worldwide. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications.

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