Garrett Motion (NYSE:GTX) Hits New 12-Month High – Still a Buy?

Garrett Motion Inc. (NYSE:GTX) shares hit a new 52-week high during trading on Monday . The company traded as high as $18.55 and last traded at $18.5980, with a volume of 1319378 shares traded. The stock had previously closed at $18.16.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Zacks Research cut shares of Garrett Motion from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Stifel Nicolaus increased their price objective on shares of Garrett Motion from $20.00 to $21.00 and gave the stock a “buy” rating in a research note on Tuesday, December 16th. BWS Financial raised their price objective on shares of Garrett Motion from $18.00 to $22.00 and gave the company a “buy” rating in a research report on Friday, December 12th. JPMorgan Chase & Co. began coverage on shares of Garrett Motion in a report on Wednesday, December 17th. They issued an “overweight” rating and a $23.00 target price for the company. Finally, Deutsche Bank Aktiengesellschaft started coverage on Garrett Motion in a research note on Monday, October 20th. They issued a “hold” rating and a $14.00 price target for the company. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $18.80.

Garrett Motion Price Performance

The stock has a 50-day moving average price of $17.07 and a two-hundred day moving average price of $14.39. The stock has a market cap of $3.63 billion, a PE ratio of 14.70 and a beta of 0.25.

Garrett Motion (NYSE:GTX) last announced its quarterly earnings results on Thursday, October 23rd. The company reported $0.38 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%.The business’s quarterly revenue was up 9.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.24 earnings per share. Equities research analysts expect that Garrett Motion Inc. will post 1.25 earnings per share for the current year.

Garrett Motion Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 1st were issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.7%. This is a boost from Garrett Motion’s previous quarterly dividend of $0.06. The ex-dividend date of this dividend was Monday, December 1st. Garrett Motion’s payout ratio is 20.38%.

Garrett Motion declared that its Board of Directors has approved a share repurchase program on Wednesday, December 3rd that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the company to repurchase up to 7.7% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in GTX. SG Americas Securities LLC grew its position in Garrett Motion by 279.0% in the fourth quarter. SG Americas Securities LLC now owns 168,089 shares of the company’s stock worth $2,930,000 after acquiring an additional 123,736 shares in the last quarter. Assenagon Asset Management S.A. purchased a new position in shares of Garrett Motion in the 4th quarter worth approximately $500,000. Wealth Enhancement Advisory Services LLC purchased a new stake in Garrett Motion during the 4th quarter valued at $305,000. JPMorgan Chase & Co. lifted its position in Garrett Motion by 45.1% in the third quarter. JPMorgan Chase & Co. now owns 1,705,484 shares of the company’s stock worth $23,229,000 after buying an additional 529,949 shares during the last quarter. Finally, Cambria Investment Management L.P. boosted its stake in Garrett Motion by 1,502.7% during the third quarter. Cambria Investment Management L.P. now owns 739,593 shares of the company’s stock worth $10,073,000 after buying an additional 693,445 shares during the period. Institutional investors own 86.27% of the company’s stock.

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.