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

Shares of Garrett Motion Inc. (NYSE:GTX) have been given a consensus rating of “Buy” by the six ratings firms that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a hold recommendation, four have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $16.50.

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

Garrett Motion Stock Performance

Shares of GTX stock opened at $16.46 on Tuesday. Garrett Motion has a 52 week low of $7.01 and a 52 week high of $17.91. The stock has a market capitalization of $3.20 billion, a PE ratio of 12.96 and a beta of 0.23. The stock’s fifty day moving average is $15.49 and its 200-day moving average is $13.20.

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

Garrett Motion Increases Dividend

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

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

Insider Buying and Selling

In other Garrett Motion news, major shareholder Cyrus Capital Partners, L.P. sold 350,566 shares of the business’s 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 completion of the sale, the insider directly 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.83% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. William Blair Investment Management LLC raised its stake in shares of Garrett Motion by 51.0% during the third quarter. William Blair Investment Management LLC now owns 7,715,824 shares of the company’s stock worth $105,090,000 after buying an additional 2,605,296 shares during the last quarter. Gates Capital Management Inc. boosted its stake in 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. LSV Asset Management acquired a new stake in Garrett Motion during the 3rd quarter worth $58,247,000. Vanguard Group Inc. raised its position in shares of Garrett Motion by 40.4% during the 3rd quarter. Vanguard Group Inc. now owns 4,189,811 shares of the company’s stock valued at $57,065,000 after acquiring an additional 1,205,549 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Garrett Motion by 2.3% during the 3rd quarter. Dimensional Fund Advisors LP now owns 3,186,089 shares of the company’s stock valued at $43,390,000 after acquiring an additional 70,155 shares during the last quarter. Institutional investors own 86.27% of the company’s stock.

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.