Form 4: Cyrus Capital Plans Significant Garrett Motion Stock Sale

Cyrus Capital Partners, a 10% owner and director, reported a planned sale of 500,000 shares of Garrett Motion Inc. common stock.

Summary

• Cyrus Capital Partners, L.P., along with Cyrus Capital Partners GP, L.L.C. and Stephen C. Freidheim (collectively, the "Reporting Persons"), filed a Form 4 indicating a planned transaction.
• The Reporting Persons, who are directors and 10% owners of Garrett Motion Inc. (GTX), intend to dispose of 500,000 shares of common stock.
• The transaction is scheduled for August 22, 2025, and is being made pursuant to a Rule 10b5-1(c) plan.
• The shares are to be sold at a weighted average price of $13.2816 per share, with individual sales ranging from $13.25 to $13.40.
• Following this planned transaction, the Reporting Persons will beneficially own 20,623,348 shares of Garrett Motion Inc. common stock indirectly.
• Beneficial ownership is held through various private investment funds managed by Cyrus Capital Partners, with Cyrus Capital GP as the general partner and Stephen C. Freidheim as CIO and sole member/manager.

Sentiment

Score: 4

Explanation: The planned sale by a significant insider, even under a 10b5-1 plan, represents a reduction in exposure and can be perceived as a moderately negative signal by the market, suggesting a potential lack of strong conviction or a move towards diversification.

Negatives

• A significant planned sale of 500,000 shares by a 10% owner and director, Cyrus Capital Partners, could be interpreted by the market as a reduction in conviction or a move towards diversification.
• The transaction represents a decrease in the beneficial ownership stake of a key institutional investor and board member.

Future Outlook

The filing indicates a planned future transaction (August 22, 2025) under a Rule 10b5-1 plan, which suggests a pre-arranged sale rather than an immediate reaction to market conditions. This provides some forward visibility into a reduction of a significant insider's stake.

Industry Context

This filing is specific to an insider transaction and does not provide broader industry context. However, insider selling, even if planned, is often watched closely by the market as a potential indicator of future performance or a shift in investor sentiment within the automotive technology and turbocharger industry.

Stakeholder Impact

• Shareholders may interpret the planned sale by a 10% owner and director as a signal of reduced confidence or a strategic shift, potentially leading to negative sentiment or downward pressure on the stock price.
• Investment professionals will likely monitor the execution of this planned sale and assess its implications for the company's valuation and future prospects.

Key Dates

Recommendation

The planned sale by a significant insider, Cyrus Capital Partners, under a Rule 10b5-1 plan, suggests a reduction in their exposure to Garrett Motion. While 10b5-1 plans are often for personal financial planning or diversification and do not necessarily reflect a change in the insider's view of the company's long-term prospects, a substantial reduction in ownership by a 10% owner and director can be interpreted as a lack of strong conviction or a move to reallocate capital. Investors should monitor future filings and company performance, but this single transaction does not warrant an immediate 'sell' recommendation without further negative catalysts.

Keywords

Garrett Motion, GTX, Cyrus Capital Partners, Insider Sale, Form 4, Beneficial Ownership, Equity Transaction, Rule 10b5-1 Plan