Garrett Motion Inc. (NYSE: GTX): The Best-Of-Breed For Investing?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Garrett Motion Inc. (NYSE:GTX). The institutional investor has increased its shareholding in the Consumer Cyclical company by 10.97% to 2.39 million shares with purchase of 0.24 million shares. This fresh investment now brings its stake to 3.16% valued currently at $14.05 million. In addition, Morgan Stanley & Co. LLC raised its holdings by 0.31 million to 1.77 million shares. And SSgA Funds Management, Inc. has lifted its position by 17.10% or 0.23 million shares – to 1.57 million shares.

With over 5.76 million Garrett Motion Inc. (GTX) shares trading Monday and a closing price of $2.75 on the day, the dollar volume was approximately $15.85 million. The shares have shown a negative weekly performance of -61.16% and its price on 08/31/20 lost nearly -16.67%. Currently, there are 75.60M common shares owned by the public and among those 75.12M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for GTX have a consensus price objective of $5.13. The analysts have set the share’s price value over the next 12 months at a high of $6.50 and a low of $2.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Garrett Motion Inc. stock is 3.20 for the next 12 months. The average price target is 51.75% above its last price level and an upside to the estimated low will see the stock lose -37.5% over that period. But an upside of 57.69% will see the stock hit the forecast high price target while mean target price for the stock is $6.00.

Insiders at the company have transacted a total of 44 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 12 of these insider trades were purchases, accounting for 459,234 shares. Insider sales of the common stock occurred on 32 occasions, with total insider shares sold totaling 568,769 shares.

The top 3 mutual fund holders in Garrett Motion Inc. are iShares Core S&P Small Cap ETF, T Rowe Price Small Cap Value Fund, and iShares S&P Small Cap 600 Value E. iShares Core S&P Small Cap ETF owns 4.72 million shares of the company’s stock, all valued at over $27.74 million. The company bought an additional 51578.0 shares recently to bring their total holdings to about 6.24% of the shares outstanding. T Rowe Price Small Cap Value Fund sold -0.18 million shares to see its total holdings shrink to 2.41 million shares valued at over $14.2 million and representing 3.19% of the shares outstanding. iShares S&P Small Cap 600 Value E bought 8905.0 shares to bring its total holdings to over 1.17 million shares at a value of $6.87 million. iShares S&P Small Cap 600 Value E now owns shares totaling to 1.54% of the shares outstanding.

Shares of Garrett Motion Inc. (NYSE: GTX) opened at $3.30, unchanged from a prior closing price of $3.30. However, the script later closed the day at $2.75, down -16.67%. The company’s stock has a 5-day price change of -61.16% and -51.33% over the past three months. GTX shares are trading -72.47% year to date (YTD), with the 12-month market performance down to -72.05% lower. It has a 12-month low price of $2.50 and touched a high of $12.64 over the same period. Currently, 5.76 million shares have been traded, compared to an average intraday trading volume of 1.14 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -54.50%, -53.84%, and -59.74% respectively.

Institutional ownership of Garrett Motion Inc. (NYSE: GTX) shares accounts for 80.60% of the company’s 75.60M shares outstanding. Mutual fund holders own 49.58%, while other institutional holders and individual stakeholders account for 99.59% and 27.52% respectively.

It has a market capitalization of $206.75M. The stock’s trailing 12-month PE ratio is 0.97, while the earnings-per-share (ttm) stands at $2.84. The company has a PEG of 0.11 and a Quick Ratio of 0.70. Price movements for the stock have been influenced by the stock’s volatility, which stands at 14.92% over the week and 8.35% over the month.

Analysts forecast that Garrett Motion Inc. (GTX) will achieve an EPS of $0.52 for the current quarter, $0.65 for the next quarter and $2.87 for 2021. The lowest estimate earnings-per-share for the quarter is $0.23 while analysts give the company a high EPS estimate of $0.8. Comparatively, EPS for the current quarter was $0.5 a year ago. Earnings per share for the fiscal year are expected to increase by 12.30%, and 71.79% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Garrett Motion Inc. (GTX) as a “Hold” at a consensus score of 3.20. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 3 of the 4 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the GTX, a number of firms have released research notes about the stock. Morgan Stanley stated their Underweight rating for the stock in a research note on September 10, 2019, with the firm’s price target at $8. RBC Capital Mkts coverage for the Garrett Motion Inc. (GTX) stock in a research note released on January 23, 2019 offered a Sector Perform rating with a price target of. Jefferies was of a view on December 04, 2018 that the stock is Hold, while UBS gave the stock Sell rating on November 02, 2018, issuing a price target of.


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