Brokerages Set Garrett Motion Inc. (NYSE:GTX) Target Price at $16.50

Shares of Garrett Motion Inc. (NYSE:GTX) have earned a consensus rating of “Buy” from the six research firms that are currently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation, four have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $17.50.

GTX has been the subject of a number of research reports. Zacks Research raised Garrett Motion from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, October 1st. Deutsche Bank Aktiengesellschaft initiated coverage on Garrett Motion in a report on Monday, October 20th. They issued a “hold” rating and a $14.00 price objective for the company. BWS Financial lifted their target price on Garrett Motion from $18.00 to $22.00 and gave the stock a “buy” rating in a report on Friday. Finally, Stifel Nicolaus set a $20.00 price target on shares of Garrett Motion in a research report on Friday, October 24th.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in GTX. Jones Financial Companies Lllp acquired a new stake in shares of Garrett Motion during the first quarter worth $42,000. Tower Research Capital LLC TRC purchased a new position in Garrett Motion in the 2nd quarter worth about $45,000. Amalgamated Bank acquired a new stake in Garrett Motion during the 2nd quarter worth about $46,000. Caitong International Asset Management Co. Ltd lifted its stake in Garrett Motion by 4,655.8% during the second quarter. Caitong International Asset Management Co. Ltd now owns 4,518 shares of the company’s stock valued at $47,000 after buying an additional 4,423 shares in the last quarter. Finally, Skandinaviska Enskilda Banken AB publ purchased a new stake in Garrett Motion during the second quarter valued at about $61,000. Institutional investors and hedge funds own 86.27% of the company’s stock.

Garrett Motion Trading Down 0.2%

GTX stock opened at $17.05 on Tuesday. Garrett Motion has a 52 week low of $7.01 and a 52 week high of $17.91. The company has a market capitalization of $3.32 billion, a price-to-earnings ratio of 13.43 and a beta of 0.23. The firm’s 50-day moving average is $15.74 and its two-hundred day moving average is $13.35.

Garrett Motion (NYSE:GTX) last posted its quarterly earnings data on Thursday, October 23rd. The company reported $0.38 earnings per share (EPS) for the quarter, beating 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 period in the previous year, the firm earned $0.24 earnings per share. The firm’s revenue was up 9.2% on a year-over-year basis. On average, equities research analysts predict that Garrett Motion will post 1.25 earnings per share for the current year.

Garrett Motion announced that its board has approved a stock repurchase plan on Wednesday, December 3rd that allows the company to buyback $250.00 million in shares. This buyback authorization allows the company to purchase up to 7.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Garrett Motion Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Investors of record on Monday, December 1st will be issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Monday, December 1st. This is an increase from Garrett Motion’s previous quarterly dividend of $0.06. Garrett Motion’s payout ratio is presently 20.38%.

Garrett Motion Company Profile

Garrett Motion Inc, together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors worldwide. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications.