Form 4: Cyrus Capital Trims Garrett Motion Stake

Cyrus Capital Partners, a 10% owner and director, reported sales of Garrett Motion Inc. common stock totaling 91,447 shares through pre-arranged trading plans.

Summary

• Cyrus Capital Partners, L.P., along with its general partner Cyrus Capital Partners GP, L.L.C., and Stephen C. Freidheim (collectively, the "Reporting Persons"), reported sales of Garrett Motion Inc. (GTX) common stock.
• The Reporting Persons are identified as a Director and 10% Owner of Garrett Motion Inc.
• On July 31, 2025, 90,542 shares were sold at a weighted average price of $13.0461 per share, with prices ranging from $13.00 to $13.145.
• On August 1, 2025, 705 shares were sold at a weighted average price of $13.0152 per share, with prices ranging from $13.01 to $13.04.
• On August 4, 2025, 200 shares were sold at a weighted average price of $13.01 per share.
• Following these transactions, the Reporting Persons beneficially own 22,579,853 shares of Garrett Motion Inc. common stock.
• The sales were conducted pursuant to a Rule 10b5-1(c) trading plan.
• The beneficial ownership is indirect, held through various private investment funds managed by Cyrus Capital Partners.

Sentiment

Score: 5

Explanation: Neutral. While insider selling can be perceived negatively, the transactions were conducted under a Rule 10b5-1 plan, suggesting they were pre-scheduled and not necessarily indicative of new negative information. The filing itself is purely transactional.

Positives

• The sales were conducted under a Rule 10b5-1(c) plan, indicating they were pre-scheduled and not necessarily based on new, adverse non-public information.

Negatives

• A significant 10% owner and director is reducing their stake in the company, which could be perceived negatively by the market.
• The sales occurred at prices ranging from $13.00 to $13.145, which might suggest the reporting persons found these prices attractive for selling.

Risks

• Investor sentiment could be negatively impacted by a major shareholder and director reducing their stake, potentially leading to downward pressure on the stock price.
• The reduction in ownership by a significant institutional investor might signal a change in their long-term view of the company, though the 10b5-1 plan mitigates this interpretation somewhat.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction. It solely reports past insider transactions.

Management Comments

• The filing includes an undertaking by the Reporting Persons to provide full information regarding the number of shares sold at each separate price within the reported ranges upon request from the Issuer, any security holder, or the SEC.

Industry Context

This filing is a routine insider transaction report and does not provide specific insights into broader industry trends for the automotive or turbocharger sectors. It reflects a portfolio management decision by a significant investor rather than a company-specific operational update.

Comparison to Industry Standards

• This Form 4 filing reports insider trading activity, which is standard practice for public companies. There are no specific company or project results to compare against global benchmarks. The reported sales prices are specific to Garrett Motion Inc. and its market valuation at the time of the transactions.

Stakeholder Impact

• Shareholders: May interpret the insider selling as a negative signal, potentially leading to decreased confidence or selling pressure on the stock. However, the 10b5-1 plan mitigates this to some extent.

Next Steps

• The filing does not specify any future actions or milestones for Garrett Motion Inc. or the Reporting Persons beyond the completion of these specific sales.

Key Dates

Recommendation

The filing reports insider sales by a significant shareholder and director, Cyrus Capital Partners, totaling 91,447 shares. While insider selling can be a bearish signal, these transactions were executed under a Rule 10b5-1 plan, which implies they were pre-scheduled and not necessarily based on new, adverse non-public information. The amount sold represents a small fraction of their total beneficial ownership (91,447 out of 22,580,758 shares initially, or about 0.4%). Given the pre-planned nature and the relatively small percentage of their total holdings sold, this filing alone does not warrant a strong 'sell' recommendation, nor does it provide new positive information for a 'buy'. Therefore, a 'hold' recommendation is appropriate as investors should look to broader company fundamentals and market conditions for investment decisions.

Keywords

Garrett Motion, GTX, Cyrus Capital Partners, Insider Sales, Form 4, Beneficial Ownership, Equity Sales, Director Sales, 10% Owner