Garrett Motion (NYSE:GTX) Stock Price Up 6.8% After Dividend Announcement

Key Points

• Garrett Motion Inc. (NYSE: GTX) saw a significant 6.8% increase in its share price, reaching $13.03, with notable trading volume of over 2.5 million shares.
• Analysts have set optimistic price targets, with BWS Financial and BNP Paribas both issuing a "buy" rating and setting a price target of $14.00 for the stock.
• The company recently announced a quarterly dividend of $0.06 per share, yielding a 1.86% annualized return, indicating a stable payout ratio of 16.78%.

Garrett Motion Inc. (NYSE:GTX - Get Free Report)'s stock price traded up 6.8% during mid-day trading on Friday after the company announced a dividend. The stock traded as high as $13.04 and last traded at $13.03. 2,510,877 shares changed hands during mid-day trading, an increase of 35% from the average session volume of 1,853,131 shares. The stock had previously closed at $12.19.

The newly announced dividend which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be given a $0.06 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.84%. Garrett Motion's dividend payout ratio (DPR) is 16.78%.

Analysts Set New Price Targets

A number of research firms recently weighed in on GTX. BNP Paribas began coverage on Garrett Motion in a research report on Wednesday, July 16th. They issued an "outperform" rating for the company. BWS Financial reissued a "buy" rating and issued a $14.00 price objective on shares of Garrett Motion in a research note on Wednesday, June 25th. Finally, BNP Paribas Exane began coverage on Garrett Motion in a research note on Wednesday, July 16th. They issued an "outperform" rating and a $14.00 price objective for the company.

Garrett Motion Stock Performance

The stock has a 50 day moving average price of $10.90 and a two-hundred day moving average price of $9.97. The company has a market capitalization of $2.65 billion, a PE ratio of 10.28 and a beta of 0.01.

Insider Transactions at Garrett Motion

In other news, major shareholder Cyrus Capital Partners, L.P. sold 58,829 shares of the firm's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $11.80, for a total transaction of $694,182.20. Following the completion of the sale, the insider directly owned 22,846,995 shares of the company's stock, valued at $269,594,541. This trade represents a 0.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Centerbridge Credit Partners M sold 3,000,000 shares of the firm's stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $10.30, for a total value of $30,900,000.00. Following the sale, the insider directly owned 8,906,010 shares of the company's stock, valued at $91,731,903. This trade represents a 25.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 4,990,082 shares of company stock valued at $52,389,252 over the last ninety days. Company insiders own 0.83% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Janney Montgomery Scott LLC bought a new position in shares of Garrett Motion in the 1st quarter valued at approximately $2,722,000. SG Americas Securities LLC bought a new position in Garrett Motion in the 1st quarter worth approximately $381,000. Victory Capital Management Inc. increased its position in Garrett Motion by 4.4% in the 1st quarter. Victory Capital Management Inc. now owns 1,290,509 shares of the company's stock worth $10,802,000 after buying an additional 54,978 shares during the period. Raymond James Financial Inc. bought a new position in Garrett Motion in the 4th quarter worth approximately $326,000. Finally, Sterling Capital Management LLC increased its position in Garrett Motion by 41.1% in the 4th quarter. Sterling Capital Management LLC now owns 233,895 shares of the company's stock worth $2,112,000 after buying an additional 68,093 shares during the period. 86.27% of the stock is owned by 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.