Garrett Motion (NYSE:GTX) Sets New 12-Month High – Should You Buy?

Garrett Motion Inc. (NYSE:GTX) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $17.96 and last traded at $17.8870, with a volume of 1229600 shares trading hands. The stock had previously closed at $17.38.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft assumed coverage on Garrett Motion in a research report on Monday, October 20th. They issued a “hold” rating and a $14.00 price target on the stock. Zacks Research cut shares of Garrett Motion from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. BWS Financial boosted their price target 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. Stifel Nicolaus increased their price objective on shares of Garrett Motion from $20.00 to $21.00 and gave the company a “buy” rating in a research report on Tuesday, December 16th. Finally, 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 price objective on the stock. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $18.80.

Garrett Motion Trading Up 3.3%

The business’s fifty day moving average price is $16.97 and its 200 day moving average price is $14.11. The firm has a market capitalization of $3.49 billion, a price-to-earnings ratio of 14.14 and a beta of 0.23.

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

Garrett Motion Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were issued a $0.08 dividend. The ex-dividend date of this dividend was Monday, December 1st. This is an increase from Garrett Motion’s previous quarterly dividend of $0.06. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.8%. Garrett Motion’s dividend payout ratio is presently 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 repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 7.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in GTX. Cubist Systematic Strategies LLC purchased a new position in shares of Garrett Motion during the 1st quarter worth approximately $2,206,000. Dynamic Technology Lab Private Ltd acquired a new stake in Garrett Motion in the first quarter valued at $358,000. Jones Financial Companies Lllp purchased a new stake in shares of Garrett Motion during the 1st quarter worth $42,000. Caxton Associates LLP purchased a new position in shares of Garrett Motion in the 1st quarter valued at about $331,000. Finally, Aristeia Capital L.L.C. purchased a new position in shares of Garrett Motion in the 1st quarter valued at about $151,000. 86.27% of the stock is currently owned by institutional investors and hedge funds.

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.