Investors Purchase Large Volume of Call Options on Garrett Motion (NYSE:GTX)

Garrett Motion Inc. (NYSE:GTX) was the recipient of some unusual options trading on Friday. Stock traders acquired 11,017 call options on the stock. This is an increase of 1,201% compared to the average volume of 847 call options.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on GTX. JPMorgan Chase & Co. began coverage on Garrett Motion in a report on Wednesday. They issued an “overweight” rating and a $23.00 price objective for the company. Deutsche Bank Aktiengesellschaft started coverage on Garrett Motion in a research note on Monday, October 20th. They set a “hold” rating and a $14.00 price target for the company. BWS Financial increased their price objective on shares of Garrett Motion from $18.00 to $22.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Zacks Research raised shares of Garrett Motion from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 1st. Finally, Stifel Nicolaus upped their target price on shares of Garrett Motion from $20.00 to $21.00 and gave the company a “buy” rating in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $18.80.

Garrett Motion Price Performance

Shares of NYSE:GTX traded up $0.13 during mid-day trading on Friday, reaching $17.40. 414,283 shares of the company traded hands, compared to its average volume of 2,406,432. The company’s 50 day moving average price is $16.04 and its 200-day moving average price is $13.50. The firm has a market cap of $3.38 billion, a PE ratio of 13.63 and a beta of 0.23. Garrett Motion has a 52 week low of $7.01 and a 52 week high of $17.91.

Garrett Motion (NYSE:GTX) last released its earnings results on Thursday, October 23rd. The company reported $0.38 EPS for the quarter, topping analysts’ consensus estimates 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 previous year, the business posted $0.24 EPS. The business’s revenue for the quarter was up 9.2% compared to the same quarter last year. On average, research analysts predict that Garrett Motion will post 1.25 earnings per share for the current fiscal year.

Garrett Motion Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were given a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Monday, December 1st. This is a positive change from Garrett Motion’s previous quarterly dividend of $0.06. Garrett Motion’s payout ratio is 20.38%.

Garrett Motion announced that its board has approved a share buyback plan on Wednesday, December 3rd that allows the company to buyback $250.00 million in outstanding 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 leadership believes its shares are undervalued.

Hedge Funds Weigh In On Garrett Motion

Hedge funds have recently made changes to their positions in the business. D Orazio & Associates Inc. raised its stake in Garrett Motion by 7.2% during the 3rd quarter. D Orazio & Associates Inc. now owns 15,101 shares of the company’s stock valued at $206,000 after purchasing an additional 1,015 shares during the period. Deutsche Bank AG boosted its stake in Garrett Motion by 14.4% in the 1st quarter. Deutsche Bank AG now owns 9,383 shares of the company’s stock worth $79,000 after purchasing an additional 1,181 shares during the period. Raymond James Financial Inc. grew its holdings in Garrett Motion by 2.3% during the 2nd quarter. Raymond James Financial Inc. now owns 77,365 shares of the company’s stock valued at $813,000 after buying an additional 1,759 shares in the last quarter. Garden State Investment Advisory Services LLC grew its holdings in Garrett Motion by 16.4% during the 2nd quarter. Garden State Investment Advisory Services LLC now owns 13,667 shares of the company’s stock valued at $144,000 after buying an additional 1,922 shares in the last quarter. Finally, Baron Wealth Management LLC raised its position in shares of Garrett Motion by 13.0% during the third quarter. Baron Wealth Management LLC now owns 24,876 shares of the company’s stock valued at $339,000 after buying an additional 2,857 shares during the last quarter. Institutional investors own 86.27% of the company’s stock.

About Garrett Motion

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.