Garrett Motion (NYSE:GTX) Shares Up 6.8% - Time to Buy?

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) shot up 6.8% during trading on Friday . The company traded as high as $13.04 and last traded at $13.03. 2,510,877 shares changed hands during trading, an increase of 35% from the average session volume of 1,853,131 shares. The stock had previously closed at $12.19.

Analysts Set New Price Targets

Several brokerages have weighed in on GTX. BNP Paribas assumed 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 target price 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 report on Wednesday, July 16th. They set an "outperform" rating and a $14.00 price objective on the stock.

Garrett Motion Price Performance

The firm has a market capitalization of $2.62 billion, a PE ratio of 10.19 and a beta of 0.01. The firm has a 50-day simple moving average of $10.84 and a 200-day simple moving average of $9.88.

Garrett Motion Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Monday, June 2nd were given a dividend of $0.06 per share. The ex-dividend date of this dividend was Monday, June 2nd. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.86%. Garrett Motion's payout ratio is currently 16.78%.

Insider Transactions at Garrett Motion

In other news, major shareholder Centerbridge Credit Partners M sold 3,000,000 shares of Garrett Motion stock in a transaction dated Thursday, May 29th. The stock was sold at an average price of $10.30, for a total transaction of $30,900,000.00. Following the transaction, the insider directly owned 8,906,010 shares of the company's stock, valued at $91,731,903. The trade was a 25.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Cyrus Capital Partners, L.P. sold 1,196,526 shares of the business's stock in a transaction that occurred on Friday, June 27th. The stock was sold at an average price of $10.46, for a total value of $12,515,661.96. Following the completion of the transaction, the insider directly owned 23,705,198 shares in the company, valued at approximately $247,956,371.08. This represents a 4.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 4,990,082 shares of company stock worth $52,389,252. Insiders own 0.83% of the company's stock.

Hedge Funds Weigh In On Garrett Motion

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GTX. Janney Montgomery Scott LLC purchased a new stake in Garrett Motion during the 1st quarter valued at $2,722,000. SG Americas Securities LLC purchased a new position in shares of Garrett Motion in the first quarter valued at approximately $381,000. Raymond James Financial Inc. purchased a new position in shares of Garrett Motion in the fourth quarter valued at approximately $326,000. Sterling Capital Management LLC lifted its position in Garrett Motion by 41.1% during the fourth 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 in the last quarter. Finally, First Trust Advisors LP lifted its position in Garrett Motion by 105.1% during the fourth quarter. First Trust Advisors LP now owns 226,506 shares of the company's stock worth $2,045,000 after buying an additional 116,086 shares in the last quarter. 86.27% of the stock is owned by institutional investors.

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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