Garrett Motion sees $7.35 million in stock sales by major investors

In a recent series of transactions, Garrett Motion Inc. (NASDAQ:GTX) saw significant stock sales by major investors, totaling approximately $7.35 million. The transactions, which occurred on February 25 and 26, involved the sale of common stock at prices ranging from $9.9308 to $9.9384 per share. With a current market capitalization of $2 billion and a P/E ratio of 7.71, InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value metrics.

The sales were conducted by entities associated with Centerbridge, a private investment management firm. These entities include Centerbridge Special Credit Partners III-Flex, L.P. and Centerbridge Credit Partners Master, L.P., among others. Notably, Jeffrey H. Aronson, who may be deemed to share beneficial ownership, is linked to these transactions through his role in the managing entities. The stock has shown strong momentum, delivering a 19.4% return over the past six months.

Following these transactions, the involved entities continue to hold substantial shares in Garrett Motion, maintaining their status as significant shareholders. The sales reflect a strategic financial decision by these investors, though the entities have expressly disclaimed beneficial ownership except for their proportionate pecuniary interests. InvestingPro data reveals management has been actively buying back shares, with the company maintaining profitability at $1.26 per share over the last twelve months. Get the complete analysis and more exclusive insights with an InvestingPro subscription.

In other recent news, Garrett Motion Inc. reported its fourth-quarter 2024 earnings, showcasing a notable performance in earnings per share (EPS) while falling short on revenue expectations. The company announced an EPS of $0.47, surpassing the forecasted $0.31, but reported revenue of $844 million, which was below the anticipated $905.5 million. Despite the earnings beat, Garrett Motion’s stock experienced a pre-market decline, reflecting investor concerns over the revenue miss. The company also revealed a sequential increase in net sales and an adjusted EBITDA of $153 million, representing an 18.1% margin.

Additionally, Garrett Motion has been focusing on expanding its turbo technologies and electrification solutions, which contributed to its solid performance. The company has been actively investing in research and development, particularly in zero-emission technologies, with plans to increase R&D spending to 4.6% of sales in 2025. Looking forward, Garrett Motion projects net sales of $3.4 billion and net income of $232 million for 2025. Furthermore, the company has initiated a $250 million share repurchase program and plans to pay $50 million in quarterly dividends.

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