Garrett Motion (NYSE:GTX) to Repurchase $250.00 million in Shares

Garrett Motion announced a $250 million stock repurchase plan, authorized by its Board of Directors, to buy back up to 7.7% of its shares. This move suggests the company believes its stock is undervalued. Analysts have given GTX a mix of ratings, with an average 'Buy' rating and a target price of $16.50. The company also increased its quarterly dividend to $0.08 per share, indicating positive financial performance.

Garrett Motion (NYSE:GTX - Get Free Report) announced that its board has authorized a stock repurchase program on Wednesday, December 3rd, RTT News reports. The company plans to repurchase $250.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 7.7% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

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Wall Street Analysts Forecast Growth

Garrett Motion Inc. Skids on Results: Is it Time to Buy the Dip?

GTX has been the subject of a number of recent analyst reports. BWS Financial reiterated a "buy" rating and issued a $18.00 target price on shares of Garrett Motion in a research report on Friday, October 24th. Stifel Nicolaus set a $20.00 price objective on shares of Garrett Motion in a report on Friday, October 24th. Zacks Research raised Garrett Motion from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 1st. Finally, 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. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $16.50.

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Garrett Motion Trading Up 1.6%

The Top 2 Chip Stocks Going Into Earnings Season

GTX stock traded up $0.26 on Wednesday, hitting $16.72. 3,539,685 shares of the company's stock traded hands, compared to its average volume of 2,413,164. The stock has a market cap of $3.25 billion, a price-to-earnings ratio of 13.17 and a beta of 0.23. Garrett Motion has a 1-year low of $7.01 and a 1-year high of $17.91. The stock has a fifty day moving average of $15.30 and a 200-day moving average of $13.08.

Garrett Motion (NYSE:GTX - Get Free Report) last posted its quarterly earnings results 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 negative return on equity of 38.75% and a net margin of 8.12%.During the same period in the previous year, the company earned $0.24 EPS. Garrett Motion's quarterly revenue was up 9.2% compared to the same quarter last year. On average, equities research analysts anticipate that Garrett Motion will post 1.25 earnings per share for the current fiscal year.

Garrett Motion Increases Dividend

Can Garrett Motion Turbocharge A Short Squeeze?

The business also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be issued a dividend of $0.08 per share. This is a positive change from Garrett Motion's previous quarterly dividend of $0.06. This represents a $0.32 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, December 1st. Garrett Motion's dividend payout ratio (DPR) is currently 20.38%.

Insider Activity at Garrett Motion

In related news, major shareholder Cyrus Capital Partners, L.P. sold 350,566 shares of the stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $13.28, for a total value of $4,655,516.48. Following the completion of the transaction, the insider owned 20,009,945 shares in the company, valued at $265,732,069.60. This trade represents a 1.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders sold 613,403 shares of company stock worth $8,133,314 over the last three months. Corporate insiders own 0.83% of the company's stock.

Garrett Motion Company Profile

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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.

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