Garrett Motion (NASDAQ:GTX) Sets New 52-Week High – Still a Buy?

Garrett Motion Inc. (NASDAQ:GTX)’s share price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $34.42 and last traded at $34.3210, with a volume of 1160221 shares traded. The stock had previously closed at $33.40.

Analyst Ratings Changes

A number of equities analysts have recently commented on GTX shares. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $24.00 price target on shares of Garrett Motion in a research report on Friday, May 1st. JPMorgan Chase & Co. raised their price target on Garrett Motion from $30.00 to $33.00 and gave the company an “overweight” rating in a research report on Thursday, May 14th. Stifel Nicolaus boosted their price objective on Garrett Motion from $29.00 to $36.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Royal Bank Of Canada set a $42.00 target price on Garrett Motion in a research note on Thursday, May 21st. Finally, Zacks Research raised Garrett Motion from a “hold” rating to a “strong-buy” rating in a report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Garrett Motion currently has an average rating of “Moderate Buy” and a consensus target price of $31.83.

Garrett Motion Stock Performance

The firm’s 50-day simple moving average is $26.55 and its 200-day simple moving average is $21.09. The company has a market capitalization of $6.28 billion, a price-to-earnings ratio of 19.63, a price-to-earnings-growth ratio of 1.05 and a beta of 0.79.

Garrett Motion (NASDAQ:GTX) last announced its quarterly earnings data on Friday, May 1st. The company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.43 by $0.06. Garrett Motion had a net margin of 9.29% and a negative return on equity of 42.77%. The business had revenue of $985.00 million during the quarter, compared to analyst estimates of $917.23 million. The business’s quarterly revenue was up 12.2% compared to the same quarter last year. Equities research analysts forecast that Garrett Motion Inc. will post 1.83 earnings per share for the current year.

Garrett Motion Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be given a $0.08 dividend. The ex-dividend date is Monday, June 1st. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.0%. Garrett Motion’s dividend payout ratio (DPR) is currently 18.71%.

Insider Transactions at Garrett Motion

In other news, CFO Sean Deason sold 110,000 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $31.93, for a total transaction of $3,512,300.00. Following the sale, the chief financial officer directly owned 261,909 shares in the company, valued at approximately $8,362,754.37. The trade was a 29.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Daniel A. Ninivaggi sold 17,178 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $31.22, for a total value of $536,297.16. Following the completion of the transaction, the director directly owned 124,885 shares of the company’s stock, valued at approximately $3,898,909.70. This trade represents a 12.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 197,178 shares of company stock valued at $6,358,597. 1.10% of the stock is owned by corporate insiders.

Institutional Trading of Garrett Motion

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jones Financial Companies Lllp acquired a new stake in Garrett Motion during the first quarter valued at approximately $42,000. Jane Street Group LLC lifted its position in shares of Garrett Motion by 641.7% during the 1st quarter. Jane Street Group LLC now owns 90,919 shares of the company’s stock worth $761,000 after buying an additional 78,661 shares during the period. Cetera Investment Advisers acquired a new stake in Garrett Motion in the 2nd quarter valued at $121,000. Legal & General Group Plc boosted its stake in Garrett Motion by 30.4% in the 2nd quarter. Legal & General Group Plc now owns 97,486 shares of the company’s stock valued at $1,024,000 after buying an additional 22,727 shares in the last quarter. Finally, Prudential Financial Inc. bought a new stake in Garrett Motion in the second quarter valued at $225,000. Institutional investors own 86.27% of the company’s stock.

About Garrett Motion

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.