Garrett Motion Target of Unusually High Options Trading (NYSE:GTX)

Key Points

• Garrett Motion Inc. experienced a significant surge in options trading, with 8,336 call options traded, a dramatic 1,857% increase from its typical daily volume.
• Major shareholders, totaling over 11 million shares worth approximately $145 million, have sold significant portions of their stakes in the company in recent months.
• Analysts have mixed ratings for Garrett Motion, with a consensus rating of "Buy" and a target price averaging around $15.75, reflecting optimism in the company's growth potential.

Garrett Motion Inc. (NYSE:GTX - Get Free Report) was the recipient of unusually large options trading activity on Thursday. Traders bought 8,336 call options on the stock. This is an increase of 1,857% compared to the typical daily volume of 426 call options.

Insider Buying and Selling at Garrett Motion

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 shares were sold at an average price of $13.00, for a total transaction of $16,900,000.00. Following the transaction, the insider directly owned 21,128,348 shares of the company's stock, valued at $274,668,524. This represents a 5.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Centerbridge Credit Partners M sold 9,000,000 shares of the business's stock in a transaction on 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 transaction, the insider directly owned 4,740,569 shares of the company's stock, valued at approximately $58,166,781.63. This represents a 65.50% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 11,685,545 shares of company stock worth $145,663,491 over the last three months. Company insiders own 0.60% of the company's stock.

Institutional Trading of Garrett Motion

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Janney Montgomery Scott LLC bought a new stake in Garrett Motion in the first quarter valued at about $2,722,000. SG Americas Securities LLC bought a new stake in Garrett Motion in the first quarter valued at about $381,000. Vanguard Group Inc. increased its stake in Garrett Motion by 2.8% in the first quarter. Vanguard Group Inc. now owns 2,304,014 shares of the company's stock valued at $19,285,000 after acquiring an additional 62,844 shares during the period. Victory Capital Management Inc. increased its stake 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 valued at $10,802,000 after acquiring an additional 54,978 shares during the period. Finally, OMERS ADMINISTRATION Corp increased its stake in Garrett Motion by 296.5% in the first quarter. OMERS ADMINISTRATION Corp now owns 253,150 shares of the company's stock valued at $2,119,000 after acquiring an additional 189,300 shares during the period. Institutional investors own 86.27% of the company's stock.

Analyst Ratings Changes

GTX has been the subject of a number of research analyst reports. BWS Financial boosted their target price on shares of Garrett Motion from $14.00 to $18.00 and gave the stock a "buy" rating in a research report on Tuesday, September 30th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Garrett Motion in a research report on Monday. They set a "hold" rating and a $14.00 target price for the company. BNP Paribas initiated coverage on shares of Garrett Motion in a research report on Wednesday, July 16th. They set an "outperform" rating for the company. BNP Paribas Exane initiated coverage on shares of Garrett Motion in a research report on Wednesday, July 16th. They set an "outperform" rating and a $14.00 target price for the company. Finally, Zacks Research raised shares of Garrett Motion from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Garrett Motion has a consensus rating of "Buy" and a consensus price target of $15.75.

Garrett Motion Stock Performance

Shares of NYSE:GTX traded up $2.65 on Thursday, hitting $15.16. 4,836,406 shares of the company were exchanged, compared to its average volume of 2,270,070. The company's 50 day moving average price is $13.16 and its two-hundred day moving average price is $11.60. Garrett Motion has a one year low of $7.01 and a one year high of $15.75. The firm has a market capitalization of $3.06 billion, a price-to-earnings ratio of 11.94 and a beta of 0.37.

Garrett Motion (NYSE:GTX - Get Free Report) last posted its quarterly earnings data on Thursday, October 23rd. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.04. Garrett Motion had a net margin of 8.12% and a negative return on equity of 38.75%. During the same quarter in the prior year, the business posted $0.24 EPS. The business's revenue was up 9.2% on a year-over-year basis. Garrett Motion has set its FY 2025 guidance at EPS. Research analysts predict that Garrett Motion will post 1.25 earnings per share for the current year.

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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