Garrett Motion Inc. (NYSE:GTX) Receives Consensus Rating of “Buy” from Analysts

Shares of Garrett Motion Inc. (NYSE:GTX) have earned a consensus recommendation of “Buy” from the six brokerages that are presently covering the stock, MarketBeat reports. One analyst has rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $16.50.

GTX has been the subject of several research analyst reports. Stifel Nicolaus set a $20.00 price objective on Garrett Motion in a research report on Friday, October 24th. Deutsche Bank Aktiengesellschaft started coverage on Garrett Motion in a report on Monday, October 20th. They set a “hold” rating and a $14.00 price target for the company. Zacks Research raised Garrett Motion from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 1st. Finally, BWS Financial reaffirmed a “buy” rating and set a $18.00 target price on shares of Garrett Motion in a research report on Friday, October 24th.

Garrett Motion Trading Down 0.7%

NYSE:GTX opened at $16.46 on Tuesday. The firm has a market capitalization of $3.20 billion, a PE ratio of 12.96 and a beta of 0.23. Garrett Motion has a 1 year low of $7.01 and a 1 year high of $17.91. The firm’s fifty day simple moving average is $15.49 and its 200 day simple moving average is $13.20.

Garrett Motion (NYSE:GTX) last released its earnings results on Thursday, October 23rd. The company reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.04. Garrett Motion had a net margin of 8.12% and a negative return on equity of 38.75%. The business’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.24 earnings per share. As a group, analysts anticipate that Garrett Motion will post 1.25 EPS for the current fiscal year.

Garrett Motion Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be issued a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Monday, December 1st. This is a positive change from Garrett Motion’s previous quarterly dividend of $0.06. Garrett Motion’s payout ratio is presently 20.38%.

Garrett Motion declared that its board has initiated a stock repurchase program on Wednesday, December 3rd that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 7.7% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

Insider Activity at Garrett Motion

In related news, major shareholder Cyrus Capital Partners, L.P. sold 350,566 shares of Garrett Motion stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $13.28, for a total transaction of $4,655,516.48. Following the sale, the insider directly owned 20,009,945 shares of the company’s stock, valued at $265,732,069.60. This trade represents a 1.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.83% of the company’s stock.

Institutional Investors Weigh In On Garrett Motion

A number of institutional investors have recently added to or reduced their stakes in the stock. LSV Asset Management bought a new position in shares of Garrett Motion during the third quarter valued at $58,247,000. Merewether Investment Management LP acquired a new stake in shares of Garrett Motion during the third quarter worth approximately $40,590,000. BlueCrest Capital Management Ltd acquired a new stake in shares of Garrett Motion during the third quarter worth approximately $36,539,000. William Blair Investment Management LLC raised its stake in shares of Garrett Motion by 51.0% in the third quarter. William Blair Investment Management LLC now owns 7,715,824 shares of the company’s stock valued at $105,090,000 after acquiring an additional 2,605,296 shares during the last quarter. Finally, Gates Capital Management Inc. raised its stake in shares of Garrett Motion by 53.1% in the first quarter. Gates Capital Management Inc. now owns 6,795,553 shares of the company’s stock valued at $56,879,000 after acquiring an additional 2,358,294 shares during the last quarter. 86.27% of the stock is owned by institutional investors and hedge funds.

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.