Garrett Motion (NYSE:GTX) Shares Gap Down – Time to Sell?

Shares of Garrett Motion Inc. (NYSE:GTX) gapped down before the market opened 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.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Zacks Research cut Garrett Motion from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. 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 price objective on the stock. BWS Financial boosted their price objective on Garrett Motion from $18.00 to $22.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Finally, Stifel Nicolaus increased their target price on shares of Garrett Motion from $20.00 to $21.00 and gave the stock a “buy” rating in a report on Tuesday, December 16th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Garrett Motion currently has a consensus rating of “Moderate Buy” and a consensus price target of $18.80.

Garrett Motion Stock Down 7.2%

The stock has a fifty day simple moving average of $18.34 and a 200 day simple moving average of $15.82. The firm has a market capitalization of $3.72 billion, a P/E ratio of 14.95 and a beta of 0.33.

Garrett Motion (NYSE:GTX) last released its earnings results on Thursday, February 19th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.03. Garrett Motion had a negative return on equity of 38.75% and a net margin of 8.12%.The business’s revenue was up 5.6% on a year-over-year basis. Research analysts anticipate that Garrett Motion Inc. will post 1.25 earnings per share for the current fiscal year.

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

Hedge Funds Weigh In On Garrett Motion

Institutional investors have recently bought and sold shares of the stock. Fuller & Thaler Asset Management Inc. bought a new position in shares of Garrett Motion during the 4th quarter valued at about $180,383,000. LSV Asset Management purchased a new stake in shares of Garrett Motion in the third quarter worth about $58,247,000. Arrowstreet Capital Limited Partnership boosted its stake in Garrett Motion by 170.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 5,139,439 shares of the company’s stock valued at $89,580,000 after buying an additional 3,241,952 shares during the last quarter. Merewether Investment Management LP purchased a new position in Garrett Motion during the 3rd quarter valued at approximately $40,590,000. Finally, BlueCrest Capital Management Ltd bought a new stake in Garrett Motion in the 3rd quarter worth approximately $36,539,000. 86.27% of the stock is owned by hedge funds and other institutional investors.

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.