Form 4: Oaktree Capital Entities Divest Over 7 Million Shares in Garrett Motion Inc.

Entities affiliated with Oaktree Capital Group, a significant shareholder and director in Garrett Motion Inc., have reported the sale of over 7 million shares of common stock across two transactions in late May 2025.

Summary

• Oaktree Capital Group Holdings GP, LLC and its affiliated entities, identified as 10% owners and having director representation, reported significant sales of Garrett Motion Inc. common stock.
• On May 28, 2025, 188,000 shares were sold at a volume-weighted average price of $11.1 per share, with prices ranging from $11.09 to $11.14.
• On May 29, 2025, an additional 7,000,000 shares were sold at a price of $10.3 per share.
• Following these transactions, the reporting persons beneficially own 36,894,816 shares of Garrett Motion Inc. common stock.
• The total number of shares sold across these two transactions amounts to 7,188,000 shares.

Sentiment

Score: 3

Explanation: The significant divestment of shares by a major institutional investor and 10% owner, Oaktree Capital, suggests a negative sentiment or strategic rebalancing regarding Garrett Motion Inc. by a key insider.

Negatives

• Significant reduction in beneficial ownership by a major institutional investor and 10% owner, Oaktree Capital entities.
• The sale of 7,188,000 shares represents a substantial divestment, potentially signaling a lack of confidence or a strategic portfolio rebalancing by a key insider.
• The second, larger sale occurred at a lower price ($10.3) compared to the first ($11.1), indicating a potential downward trend in the perceived value by the seller.

Risks

• Investor sentiment may be negatively impacted by the large insider selling, potentially leading to downward pressure on Garrett Motion Inc.'s stock price.
• The divestment by a 10% owner and director-affiliated entity could be interpreted as a signal of concerns regarding the company's future prospects or valuation.

Future Outlook

NA

Industry Context

This Form 4 filing details an insider transaction specific to Garrett Motion Inc. and Oaktree Capital entities, and does not provide broader industry context or trends.

Related Party Transactions

• The transactions involve Oaktree Capital Group Holdings GP, LLC and several affiliated Oaktree entities, which are identified as 10% owners and have director representation on Garrett Motion Inc.'s board.
• The reported securities are directly held by Oaktree Value Opportunities Fund Holdings, L.P., OCM Opps GTM Holdings LLC, Oaktree Phoenix Investment Fund LP and Oaktree Opportunities Fund Xb Holdings (Delaware), L.P. (collectively, the "Direct Holders"), and may be deemed beneficially owned by their direct and indirect managers or general partners, including Oaktree Capital Holdings, LLC and Oaktree Capital Group Holdings GP, LLC.

Stakeholder Impact

• Shareholders may interpret the large insider selling by Oaktree Capital as a negative signal regarding the company's future prospects or valuation, potentially leading to decreased investor confidence.
• The reduction in ownership by a significant institutional investor could impact the company's institutional investor base and liquidity.

Key Dates

Recommendation

Keywords

Garrett Motion Inc., GTX, GTXAP, Oaktree Capital, insider trading, Form 4, share sale, beneficial ownership, institutional investor, divestment