Garrett Motion (NYSE:GTX) Shares Gap Down – Here’s What Happened

Garrett Motion Inc. (NYSE:GTX)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $20.59, but opened at $18.06. Garrett Motion shares last traded at $18.6330, with a volume of 1,048,455 shares trading hands.

Key Stories Impacting Garrett Motion

Here are the key news stories impacting Garrett Motion this week:

• Positive Sentiment: Q4 beat and strong 2025 results — Garrett reported Q4 EPS of $0.42, topping estimates, with full-year 2025 sales of $3.584B, healthy margins, $310M net income, $403M adjusted free cash flow and $208M in share repurchases (8% fewer shares outstanding). GlobeNewsWire Release
• Positive Sentiment: New commercial win for e-cooling compressor in China — Garrett won a volume-production award from Cling for its oil-free, foil-bearing centrifugal E-Cooling compressor for electric buses/trucks, start of production in 2027 (supports industrial/e-mobility growth). GlobeNewsWire E-Cooling
• Positive Sentiment: Dividend declared — Board approved a $0.08 quarterly dividend (annualized yield ~1.7%), signaling confidence in cash flow and returning capital to shareholders. Dividend Notice
• Neutral Sentiment: Detailed disclosures and investor materials — Earnings call transcript and investor presentation are available for deeper read on segment performance, margin drivers and the company’s electrification roadmap. Useful for assessing management’s cadence and priorities. Earnings Call Transcript Presentation
• Negative Sentiment: Cautious FY2026 automotive production outlook — Management flagged a conservative view on FY26 automotive production, which raised investor concern about near-term revenue growth for core turbo business. Outlook Article
• Negative Sentiment: Margin compression and guidance uncertainty — Analysts and coverage pieces noted margin pressures in Q4 and flagged that margin compression may overshadow early gains from new industrial cooling initiatives; FY26 revenue guidance was given as a range ($3.6–$3.8B), which some view as conservative relative to consensus. Margin Analysis

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on GTX shares. Zacks Research downgraded shares of Garrett Motion from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Stifel Nicolaus boosted their price target on Garrett Motion from $20.00 to $21.00 and gave the company a “buy” rating in a report on Tuesday, December 16th. BWS Financial raised their price objective on Garrett Motion from $18.00 to $22.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Finally, JPMorgan Chase & Co. initiated coverage on Garrett Motion in a research note on Wednesday, December 17th. They issued an “overweight” rating and a $23.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $18.80.

Garrett Motion Trading Down 1.9%

The company has a market capitalization of $3.68 billion, a PE ratio of 14.88 and a beta of 0.33. The company’s 50 day moving average price is $18.42 and its 200-day moving average price is $15.89.

Garrett Motion (NYSE:GTX) last issued its earnings results on Thursday, February 19th. The company reported $0.42 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.03. 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 5.6% on a year-over-year basis. As a group, analysts predict that Garrett Motion Inc. will post 1.25 earnings per share for the current year.

Garrett Motion Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 2nd will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Monday, March 2nd. Garrett Motion’s dividend payout ratio is 21.05%.

Garrett Motion declared that its board has approved a stock buyback plan on Wednesday, December 3rd that allows the company to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 7.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Garrett Motion

Several large investors have recently made changes to their positions in GTX. Cullen Frost Bankers Inc. lifted its holdings in shares of Garrett Motion by 7,110.0% during the 4th quarter. Cullen Frost Bankers Inc. now owns 1,442 shares of the company’s stock valued at $25,000 after acquiring an additional 1,422 shares in the last quarter. Spire Wealth Management lifted its stake in shares of Garrett Motion by 971.2% during the fourth quarter. Spire Wealth Management now owns 1,489 shares of the company’s stock worth $26,000 after purchasing an additional 1,350 shares in the last quarter. Global Retirement Partners LLC boosted its position in shares of Garrett Motion by 156.7% in the fourth quarter. Global Retirement Partners LLC now owns 1,589 shares of the company’s stock worth $28,000 after buying an additional 970 shares during the period. TD Waterhouse Canada Inc. boosted its position in shares of Garrett Motion by 1,422.3% in the fourth quarter. TD Waterhouse Canada Inc. now owns 1,705 shares of the company’s stock worth $30,000 after buying an additional 1,593 shares during the period. Finally, PNC Financial Services Group Inc. grew its stake in shares of Garrett Motion by 361.7% in the fourth quarter. PNC Financial Services Group Inc. now owns 2,821 shares of the company’s stock valued at $49,000 after buying an additional 2,210 shares in the last quarter. Institutional investors and hedge funds 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.