Traders Purchase Large Volume of Call Options on Garrett Motion (NYSE:GTX)

Garrett Motion Inc. (NYSE:GTX) was the recipient of unusually large options trading activity on Friday. Stock investors bought 11,017 call options on the company. This is an increase of approximately 1,201% compared to the typical daily volume of 847 call options.

Garrett Motion Price Performance

Shares of GTX stock opened at $17.39 on Friday. The business has a 50-day moving average of $16.13 and a 200 day moving average of $13.55. Garrett Motion has a 1-year low of $7.01 and a 1-year high of $17.91. The stock has a market capitalization of $3.38 billion, a PE ratio of 13.69 and a beta of 0.23.

Garrett Motion (NYSE:GTX) last announced its quarterly earnings data on Thursday, October 23rd. 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 quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the company earned $0.24 earnings per share. Analysts anticipate that Garrett Motion will post 1.25 EPS for the current year.

Garrett Motion Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 1st were issued a dividend of $0.08 per share. The ex-dividend date was Monday, December 1st. This represents a $0.32 dividend on an annualized basis and a yield of 1.8%. This is an increase from Garrett Motion’s previous quarterly dividend of $0.06. Garrett Motion’s dividend payout ratio (DPR) is currently 20.38%.

Garrett Motion announced that its Board of Directors has authorized a stock buyback plan on Wednesday, December 3rd that permits the company to buyback $250.00 million in shares. This buyback authorization permits the company to buy up to 7.7% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Garrett Motion

Several hedge funds and other institutional investors have recently modified their holdings of GTX. Tower Research Capital LLC TRC bought a new stake in shares of Garrett Motion in the second quarter worth about $45,000. Amalgamated Bank bought a new stake in shares of Garrett Motion in the 2nd quarter worth approximately $46,000. Caitong International Asset Management Co. Ltd grew its position in shares of Garrett Motion by 4,655.8% in the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 4,518 shares of the company’s stock worth $47,000 after buying an additional 4,423 shares during the last quarter. Jones Financial Companies Lllp purchased a new position in shares of Garrett Motion during the first quarter valued at approximately $42,000. Finally, Skandinaviska Enskilda Banken AB publ bought a new position in shares of Garrett Motion during the second quarter valued at approximately $61,000. 86.27% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. BWS Financial lifted their price objective on shares of Garrett Motion from $18.00 to $22.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Deutsche Bank Aktiengesellschaft assumed coverage on Garrett Motion in a research note on Monday, October 20th. They set a “hold” rating and a $14.00 price target for the company. Zacks Research upgraded Garrett Motion from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 1st. JPMorgan Chase & Co. began coverage on Garrett Motion in a report on Wednesday. They set an “overweight” rating and a $23.00 price objective on the stock. Finally, Stifel Nicolaus upped their target price on Garrett Motion from $20.00 to $21.00 and gave the stock a “buy” rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, Garrett Motion presently has an average rating of “Buy” and an average target price of $18.80.

Garrett Motion Company Profile

Garrett Motion Inc is a technology leader specializing in the design, development and manufacture of turbocharging systems and related technologies for the global automotive industry. Its product portfolio includes conventional exhaust gas turbochargers, variable-geometry turbochargers, electric and e-boost turbochargers, as well as electronic actuators, sensors and thermal management systems. The company’s solutions are engineered to improve engine efficiency, reduce emissions and support automakers’ efforts to meet evolving regulatory standards for fuel economy and air quality.

Garrett Motion traces its roots to the founding of AiResearch by Cliff Garrett in 1936, a pioneer in aircraft and automotive turbocharging technologies.