Garrett Motion (NYSE:GTX) Sets New 12-Month High - Time to Buy?

Key Points

• Garrett Motion Inc. (NYSE: GTX) reached a new 12-month high of $14.01 during trading, closing at $13.99 with a trading volume of over 5 million shares.
• Equities analysts have issued mostly positive ratings with an average price target of $15.17, highlighting multiple "buy" ratings, with one report setting a target at $17.50.
• The company declared a quarterly dividend of $0.06 per share, representing an annualized yield of 1.7%, after insiders recently sold significant portions of their stock holdings.

Garrett Motion Inc. (NYSE:GTX - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $14.01 and last traded at $13.99, with a volume of 5128117 shares. The stock had previously closed at $13.56.

Analysts Set New Price Targets

Several equities analysts recently commented on GTX shares. Stifel Nicolaus started coverage on shares of Garrett Motion in a report on Friday, September 19th. They set a "buy" rating and a $17.50 price target on the stock. BNP Paribas Exane started coverage on Garrett Motion in a research note on Wednesday, July 16th. They set an "outperform" rating and a $14.00 target price on the stock. BWS Financial reiterated a "buy" rating and issued a $14.00 price target on shares of Garrett Motion in a report on Wednesday, June 25th. Zacks Research cut Garrett Motion from a "strong-buy" rating to a "hold" rating in a report on Monday, August 25th. Finally, BNP Paribas assumed coverage on Garrett Motion in a research note on Wednesday, July 16th. They issued an "outperform" rating on the stock. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $15.17.

Garrett Motion Stock Up 3.2%

The stock has a market capitalization of $2.82 billion, a PE ratio of 11.02 and a beta of 0.27. The stock's 50 day moving average price is $12.88 and its 200-day moving average price is $10.96.

Garrett Motion Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd were paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Tuesday, September 2nd. Garrett Motion's payout ratio is currently 16.78%.

Insider Transactions at Garrett Motion

In related news, major shareholder Cyrus Capital Partners, L.P. sold 350,566 shares of the company's stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $13.28, for a total value of $4,655,516.48. Following the completion of the sale, the insider directly owned 20,009,945 shares of the company's stock, valued at $265,732,069.60. This represents a 1.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Centerbridge Credit Partners M sold 9,000,000 shares of the company's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $12.27, for a total transaction of $110,430,000.00. Following the completion of the sale, the insider directly 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 ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 13,520,627 shares of company stock valued at $165,408,993. 0.83% of the stock is owned by insiders.

Institutional Trading of Garrett Motion

Hedge funds have recently added to or reduced their stakes in the business. Janney Montgomery Scott LLC purchased a new stake in Garrett Motion in the first quarter worth about $2,722,000. SG Americas Securities LLC purchased a new stake in Garrett Motion in the first quarter worth about $381,000. Vanguard Group Inc. raised its holdings in Garrett Motion by 2.8% in the first quarter. Vanguard Group Inc. now owns 2,304,014 shares of the company's stock worth $19,285,000 after purchasing an additional 62,844 shares in the last quarter. Victory Capital Management Inc. raised its holdings in Garrett Motion by 4.4% in the first quarter. Victory Capital Management Inc. now owns 1,290,509 shares of the company's stock worth $10,802,000 after purchasing an additional 54,978 shares in the last quarter. Finally, OMERS ADMINISTRATION Corp raised its holdings in Garrett Motion by 296.5% in the first quarter. OMERS ADMINISTRATION Corp now owns 253,150 shares of the company's stock worth $2,119,000 after purchasing an additional 189,300 shares in the last quarter. 86.27% of the stock is owned by hedge funds and other institutional investors.

About Garrett Motion

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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