Have Analysts Changed Their Mind About Garrett Motion Inc. (GTX), HighPoint Resources Corporation (HPR)

Garrett Motion Inc. (NYSE: GTX) shares are -67.17% down in the year-to-date (YTD) period and have moved -14.58% or -$0.56 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +31.20% lower. Comparatively, the stock is -69.32% down YTD and -36.56% over the trailing 3-month period. If we look at the shorter duration, its week performance is -49.46% and -53.74% over the month.

Analyst Recommendations

On January 23, 2019, RBC Capital Mkts recommended the GTX stock is a Sector Perform, while earlier, Morgan Stanley had Initiated the stock as a Underweight on September 10, 2019. 4 analysts offering the recommendations for the stock have a consensus rating of 3.20 to suggest that the GTX stock is a “Hold. 1 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.28 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $5.70. The forecasts give the Garrett Motion Inc. stock a price target range of $6.50 on the higher side while at least one analyst think the stock could plunge to a low of $2.00. The two limits represent an upside potential of 49.54% or -64.0%.

Earnings Forecast

Analysts estimate the earnings to increase 77.40% in the current quarter to $0.52, up from the $0.5 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $1.67, down -17.40% from $3.12 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.36 and $0.8. Wall Street estimates earnings per share to be at an average of $2.87 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 12 over the last 12 months, while SEC filings reveal that there have been 32 insider sales over the same period. Insiders have purchases 459,234 shares while those sold by company executives and officers stand at 568,769. The last 3 months have seen insiders trade a total of 0 and 403,480 in purchases and sales respectively.

Rabiller Olivier, a President & CEO at the company, sold 44,000 shares worth $0.29 million at $6.56 per share on Mar 03. The SVP, Integrated Supply Chain had earlier sold another 10,000 GTX shares valued at $65600.0 on Mar 03. The shares were sold at $6.56 per share. Spenninck Fabrice (SVP & Chief Human Res. Officer) sold 4,831 shares at $6.56 per share on Mar 03 for a total of $31691.0 while Mabru Thierry, (SVP, Integrated Supply Chain) sold 42,297 shares on Dec 03 for $0.49 million with each share fetching $11.59.

HighPoint Resources Corporation (NYSE:HPR), on the other hand, is trading around $0.34 with a market cap of $75.74M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting $0 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the HighPoint Resources Corporation (HPR) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

HPR’s operating expenses over the recent quarter were at $0.26 million. This represented a 99.4% of the company’s total revenues which amounted $43.3 million. With this in place, we can see that the company’s diluted EPS declined -$0.32 on the year-over-year period, shrinking to -$0.01 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $951.99 million from $1.03 billion over the previous quarter. The cash flow from operating activities totaled $60.31 million, significantly lower than the $98.55 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$51.19 million.

Insider activity

Insiders have transacted a total of 9 times at HighPoint Resources Corporation over the last 6 months, with insider purchases undertaken 6 times and accounting for 530,940 shares. Insider sales totaled 90,834 shares over the same period, with these deals completed in 3 transactions. Looking at these numbers, we realize that net purchases over that period are 3.0 shares. Insiders now hold a total of 3.49M shares after the latest sales, with 18.00% net shares purchased.

Major holders

Insiders own 1.30% of the company shares, while shares held by institutions stand at 68.40% with a share float percentage of 111.29M. Investors are also buoyed by the number of investors in a company, with HighPoint Resources Corporation having a total of 152 institutions that hold shares in the company. The top two institutional holders are G.F.W. Energy XI, L.P. with over 100.0 million shares worth more than $29.5 million. As of Jun 29, 2020, G.F.W. Energy XI, L.P. held 46.45% of shares outstanding.

The other major institutional holder is Renaissance Technologies, LLC, with the investment firm holding over 7.72 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $2.28 million and represent 3.59% of shares outstanding.