Executives at Cyrus Capital Partners have recently sold shares of Garrett Motion Inc. (NYSE:NASDAQ:GTX), a company specializing in motor vehicle parts and accessories. The transactions were executed on July 18, 2024, and reported in a Form 4 filing with the Securities and Exchange Commission on July 22, 2024.
The sale involved a total of 3,779 shares of common stock at a weighted average price of $10.0105, amounting to a total of $37,829. The sales took place in multiple transactions at prices ranging from $10.00 to $10.025 per share. Following the sale, the executives collectively own 27,337,398 shares in the company.
The executives involved in the sale include entities and individuals associated with Cyrus Capital Partners, such as Cyrus Capital Partners L.P., Cyrus Capital Partners GP, LLC, and Stephen C. Freidheim, who is the Chief Investment Officer of Cyrus Capital Partners and the sole member and manager of Cyrus Capital Partners GP, LLC. These parties have a significant pecuniary interest in the company, as indicated by the Form 4 filing.
The filing also included footnotes clarifying the nature of ownership. Cyrus Capital Partners L.P. is the investment manager of several private investment funds that directly hold the securities. Cyrus Capital Partners GP, LLC is the sole general partner of Cyrus Capital Partners L.P., and Stephen C. Freidheim oversees the investment strategies as the Chief Investment Officer.
The footnotes further stated that each of the reporting individuals and entities disclaims beneficial ownership of the securities reported, except to the extent of their pecuniary interest therein.
This transaction provides investors with updated information on the trading activities of Cyrus Capital's executives, reflecting their current stake in Garrett Motion Inc. Investors often monitor such insider transactions as indicators of management's view on the company's current valuation and future prospects.
In other recent news, Garrett Motion Inc. has reported robust financial results for the first quarter of 2024, with net sales reaching $915 million and an adjusted EBITDA of $151 million, reflecting a strong margin of 16.5%. The company also generated an adjusted free cash flow of $68 million during the quarter. In line with its financial strategy, Garrett repaid $100 million of debt, repurchased $109 million of common stock, and divested a non-core business equity interest for $46 million.
In another development, Garrett Motion announced a private offering of senior unsecured notes, initially planned at $500 million, but later increased to $800 million due to strong investor interest. The proceeds from this offering, along with available cash, will be used to repay approximately $800 million of its existing credit facility debt.
These are among the recent developments for Garrett Motion, which continues to innovate in the automotive technology sector, with a focus on turbo offerings for hybrid vehicles and natural gas applications in heavy trucks. The company is advancing in zero-emission solutions, aiming for $1 billion in annual sales of this technology by 2030.
InvestingPro Insights
Amidst the recent insider transactions at Garrett Motion Inc. (NYSE:GTX), investors are keen to understand the company's financial health and future prospects. According to InvestingPro data, Garrett Motion Inc. boasts a market capitalization of $2.16 billion and has demonstrated a solid revenue growth of 4.33% over the last twelve months as of Q1 2024. This growth is an encouraging sign for investors looking for stability in the company's financial performance.
InvestingPro Tips highlight that Garrett Motion's management has been actively participating in the company's stock performance, as evidenced by aggressive share buybacks. Additionally, analysts are optimistic about the company's future, predicting profitability this year. This is particularly noteworthy given the company's high earnings multiple, with an adjusted P/E ratio of 359.32 for the last twelve months as of Q1 2024. While the company does not pay a dividend, the focus on growth and return on investment could be attractive to certain investors.
Garrett Motion's stock has had a strong return over the last month, with a 13.53% price total return, signaling positive market sentiment. For investors seeking further insights, InvestingPro provides additional tips to help evaluate the company's performance and potential. By using the coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, accessing a total of 7 additional InvestingPro Tips for Garrett Motion Inc. at https://www.investing.com/pro/GTX.
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