Form 4: Cyrus Capital Partners Reduces Stake in Garrett Motion Inc.

Cyrus Capital Partners, a 10% owner and director, reported the sale of 175,695 shares of Garrett Motion Inc. common stock across three transactions in late July 2025.

Summary

• Cyrus Capital Partners, L.P., along with its general partner Cyrus Capital Partners GP, L.L.C., and Chief Investment Officer Stephen C. Freidheim, reported sales of Garrett Motion Inc. (GTX) common stock.
• On July 28, 2025, 93,334 shares were sold at a weighted average price of $13.1374 per share, with prices ranging from $13.00 to $13.315.
• On July 29, 2025, an additional 50,000 shares were sold at a weighted average price of $13.0521 per share, with prices ranging from $13.00 to $13.17.
• On July 30, 2025, 32,361 shares were sold at a weighted average price of $13.0273 per share, with prices ranging from $13.00 to $13.09.
• Following these transactions, the reporting persons beneficially own 22,671,300 shares of Garrett Motion Inc. common stock.
• The sales were conducted pursuant to a Rule 10b5-1(c) trading plan.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative due to significant insider selling by a major shareholder and director. While the sales were pre-planned under a 10b5-1 plan, which reduces the immediate negative implication of opportunistic selling, the reduction in stake by a key investor can still be interpreted as a lack of stronger conviction or a strategic portfolio rebalancing away from the company.

Positives

• The sales were conducted under a Rule 10b5-1(c) plan, indicating pre-scheduled transactions rather than opportunistic selling based on new, non-public information.

Negatives

• A significant shareholder and director, Cyrus Capital Partners, reduced its stake in the company by selling 175,695 shares.
• The sales occurred at prices ranging from $13.00 to $13.315, potentially signaling a belief that the current price is a good exit point.

Risks

• Investor perception risk: Significant insider selling, even if pre-planned, can be interpreted negatively by the market, potentially leading to downward pressure on the stock price.
• Reduced alignment: A decrease in ownership by a major shareholder and director might suggest a reduced long-term commitment or confidence in the company's future prospects, although the remaining stake is still substantial.

Future Outlook

No forward-looking statements or guidance are provided in this Form 4 filing, which solely reports past insider transactions.

Industry Context

This filing reports a routine insider transaction by a significant institutional investor and director. While not directly indicative of broader industry trends, large sales by major shareholders in the automotive or industrial sectors can sometimes prompt closer scrutiny of the company's specific performance or outlook within its competitive landscape.

Comparison to Industry Standards

• Insider selling, particularly by a 10% owner and director, is generally viewed with caution by the market.
• However, the disclosure that these sales were made pursuant to a Rule 10b5-1(c) plan mitigates some of the negative implications, as such plans are pre-arranged and not typically based on immediate, non-public information. This aligns with best practices for insiders to manage their stock holdings transparently.
• Compared to other companies where insider selling might occur without a 10b5-1 plan, this filing suggests a more structured and less opportunistic approach to reducing holdings.

Related Party Transactions

• The reported transactions are sales of common stock by Cyrus Capital Partners, L.P., Cyrus Capital Partners GP, L.L.C., and Stephen C. Freidheim, who are identified as a 10% owner and director of Garrett Motion Inc. These are considered related party transactions under SEC rules.

Stakeholder Impact

• Shareholders: The sale by a significant institutional shareholder and director could lead to negative market sentiment and potential downward pressure on the stock price. Existing shareholders might interpret this as a signal of reduced confidence.
• Employees, Customers, Suppliers, Creditors: No direct impact on these stakeholders is indicated by this insider trading report.

Next Steps

• No specific future actions or milestones are mentioned in this Form 4 filing, which is a historical report of transactions.

Key Dates

Recommendation

While the insider selling by a significant 10% owner and director is a negative signal, the fact that these sales were executed under a Rule 10b5-1 plan mitigates the immediate concern of opportunistic selling based on new, adverse information. The remaining beneficial ownership of over 22 million shares indicates that Cyrus Capital Partners still holds a substantial stake. Investors should monitor future filings and company performance, but this specific transaction, while a reduction in stake, does not necessarily warrant an immediate 'sell' recommendation given the pre-planned nature of the sales. A 'hold' recommendation allows for observation of subsequent developments.

Keywords

Garrett Motion Inc., GTX, SEC Form 4, Insider Selling, Cyrus Capital Partners, Stock Sale, Beneficial Ownership, 10b5-1 Plan, Director Transaction, Institutional Investor