Form 4: Cyrus Capital Partners Plans Minor Sale of Garrett Motion Shares Under 10b5-1 Plan

Cyrus Capital Partners, a 10% owner and director of Garrett Motion Inc., has filed a Form 4 detailing future planned sales of a small portion of its common stock holdings under a Rule 10b5-1 trading plan.

Summary

• Cyrus Capital Partners, L.P., Cyrus Capital Partners GP, L.L.C., and Stephen C. Freidheim, collectively a 10% owner and director of Garrett Motion Inc. (GTX), reported planned sales of common stock.
• On July 21, 2025, 43 shares of common stock are planned to be sold at a price of $11.76 per share.
• On July 23, 2025, 58,829 shares of common stock are planned to be sold at a weighted average price of $11.7977 per share, with prices ranging from $11.75 to $11.865.
• These transactions are made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
• Following these planned transactions, the reporting persons will beneficially own 22,846,995 shares of Garrett Motion Inc. common stock indirectly through various investment funds.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly negative. While the sales are by a significant insider, they are pre-planned under a 10b5-1 plan and represent a very small percentage of the total holdings, mitigating strong negative implications.

Positives

• The sales are pre-planned under a Rule 10b5-1(c) plan, indicating a structured, non-discretionary sale rather than a reaction to new negative information.
• The total number of shares planned for sale (58,872) represents a very small fraction (approximately 0.25%) of the reporting persons' total beneficial ownership (over 22.8 million shares), suggesting no significant change in their overall conviction or investment strategy.

Negatives

• A significant insider and 10% owner is reducing their stake, which can be perceived as a slight negative signal, even if the sales are pre-planned.
• The reduction in beneficial ownership, albeit minor, decreases the alignment of interests between this large shareholder and other common shareholders.

Future Outlook

The filing does not provide any forward-looking statements or guidance regarding the company's financial performance or strategic direction, focusing solely on planned insider stock transactions.

Industry Context

This filing pertains to specific insider trading activity for Garrett Motion Inc. and does not provide broader insights into industry trends or competitive landscape. It reflects a large institutional investor's portfolio management decisions rather than a company-wide strategic shift.

Related Party Transactions

• The reported sales of common stock by Cyrus Capital Partners, L.P., Cyrus Capital Partners GP, L.L.C., and Stephen C. Freidheim constitute related party transactions, as these entities and individuals are collectively a 10% owner and director of Garrett Motion Inc.

Stakeholder Impact

• Shareholders may perceive the planned sales by a significant insider as a minor negative signal, potentially leading to slight downward pressure on the stock, although the small volume and pre-planned nature mitigate this impact.

Key Dates

Recommendation

The planned sales by Cyrus Capital Partners are under a Rule 10b5-1 plan and represent a very small fraction of their total holdings. While insider sales can be a negative signal, the pre-planned nature and minimal volume suggest these are routine portfolio adjustments rather than a strong bearish indicator. Therefore, a 'hold' recommendation is appropriate, as the filing does not present a compelling reason for a significant change in investment stance.

Keywords

Garrett Motion Inc., GTX, Cyrus Capital Partners, Stephen C. Freidheim, Form 4, SEC filing, insider trading, beneficial ownership, stock sale, 10b5-1 plan, equity securities