Garrett Motion (NYSE:GTX) Trading Up 8.8% on Earnings Beat

Garrett Motion Inc. (NYSE:GTX)’s stock price was up 8.8% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $16.11 and last traded at $16.24. Approximately 2,400,028 shares were traded during trading, an increase of 5% from the average daily volume of 2,284,760 shares. The stock had previously closed at $14.93.

The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. Garrett Motion had a negative return on equity of 38.75% and a net margin of 8.12%.The firm’s revenue was up 9.2% on a year-over-year basis. During the same period last year, the firm earned $0.24 EPS. Garrett Motion has set its FY 2025 guidance at EPS.

Garrett Motion Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be given a $0.08 dividend. This is a boost from Garrett Motion’s previous quarterly dividend of $0.06. This represents a $0.32 annualized dividend and a yield of 1.9%. The ex-dividend date is Monday, December 1st. Garrett Motion’s dividend payout ratio is 16.78%.

Analyst Ratings Changes

Several equities analysts have commented on the company. Deutsche Bank Aktiengesellschaft assumed coverage on Garrett Motion in a research report on Monday, October 20th. They issued a “hold” rating and a $14.00 target price for the company. Stifel Nicolaus set a $20.00 target price on Garrett Motion in a research report on Friday. Zacks Research upgraded Garrett Motion from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 1st. BNP Paribas Exane assumed coverage on Garrett Motion in a research report on Wednesday, July 16th. They issued an “outperform” rating and a $14.00 target price for the company. Finally, BNP Paribas assumed coverage on Garrett Motion in a research report on Wednesday, July 16th. They set an “outperform” rating for the company. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus target price of $16.50.

Insider Activity at Garrett Motion

In other Garrett Motion news, insider Centerbridge Credit Partners M sold 9,000,000 shares of Garrett Motion stock in a transaction that occurred 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 sale, the insider directly owned 4,740,569 shares in the company, valued at approximately $58,166,781.63. The trade was a 65.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Cyrus Capital Partners, L.P. sold 350,566 shares of Garrett Motion stock in a transaction that occurred on Thursday, September 11th. The stock was 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 owned 20,009,945 shares of the company’s stock, valued at approximately $265,732,069.60. The trade was a 1.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 11,685,545 shares of company stock valued at $145,663,491 in the last ninety days. 0.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Garrett Motion

A number of hedge funds have recently added to or reduced their stakes in GTX. Jones Financial Companies Lllp bought a new stake in Garrett Motion in the first quarter worth approximately $42,000. Tower Research Capital LLC TRC bought a new stake in Garrett Motion in the second quarter worth approximately $45,000. Amalgamated Bank bought a new stake in Garrett Motion in the second quarter worth approximately $46,000. Caitong International Asset Management Co. Ltd increased its holdings in Garrett Motion by 4,655.8% in the second quarter. Caitong International Asset Management Co. Ltd now owns 4,518 shares of the company’s stock worth $47,000 after purchasing an additional 4,423 shares in the last quarter. Finally, Vestcor Inc bought a new stake in Garrett Motion in the first quarter worth approximately $61,000. 86.27% of the stock is currently owned by institutional investors.

Garrett Motion Stock Up 13.8%

The stock has a 50 day simple moving average of $13.28 and a 200 day simple moving average of $11.71. The stock has a market cap of $3.42 billion, a price-to-earnings ratio of 13.38 and a beta of 0.37.

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.