Garmin stock: buy or sell?
August 23rd, 2019
Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide.
Should I buy Garmin stock?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, Garmin stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Garmin stock a buy?
Financial institutions and banks publish stock ratings everyday.At Stocks2.com, we detected 6 ratings published for GRMN stock in the last 30 days. The general sentiment of these ratings is bearish for GRMN stock, with 1 negative ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-6-7||JPMorgan Chase & Co.||Underweight||Neutral|
|2019-6-7||JPMorgan Chase & Co.||Underweight||Neutral|
|2019-2-25||Credit Suisse Group||n/a||Underperform|
|2019-1-7||Morgan Stanley||Equal Weight||Equal Weight|
Garmin stock analysis
After climbing for 4 days, Friday Garmin fell a fatal -2.39%, closing at $78.36.
After climbing for 4 days, Friday Garmin fell a fatal -2.39%, closing at $78.36. From a daily perspective, GRMN is in a short term uptrend after plotting its last bottom ($76.06, on Aug/15) higher than the previous bottom, and its last top ($80.92, yesterday) also over the previous top. Now trading in between its last bottom and last top GRMN might consolidate in a plain range, waiting to break out over $80.92 or down under $76.06. In this session, Garmin stock crossed down the SMA100d line. If you are using SMA100d line as stop loss trigger, double check your position in this stock. On April, GRMN hit new all time highs, pushing higher previous ATH of $88.70 recorded on April. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Garmin gained a fine 1.54% this week.
Far behind is the all-time high Garmin marked early April and since then the price is -12.03% below that top. Late December 2018 GRMN price bounced up over the SMA of 40 weeks that acted as support stopping new slides.
Garmin stock price history
Garmin IPO was on December 8th, 2000 at $4.60 per share1. Since then, GRMN stock grew a 1,603.50%, with a yearly average of 89.10%. If you had invested right after GRMN's IPO a $1,000 in Garmin stock in 2000, it would worth $16,035.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Garmin stock historical price chart
GRMN stock reached all-time highs on April with a price of $89.08.
Garmin stock price target is $74.30Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 4 price predictions for Garmin stock published in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-6-7||JPMorgan Chase & Co.||Upgrades||$77.00||$75.00||-2.6%|
|2019-5-2||Morgan Stanley||Set Price Target||n/a||$81.00||-|
|2019-2-25||Credit Suisse Group||Reiterates||$58.00||$71.00||22.4%|
|2019-1-7||Morgan Stanley||Lowers Target||$77.00||$70.00||-9.1%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, Garmin reported its latest financial data, posting an exceptional gain for the Earnings per Share (EPS). Analyst expected $0.79 per share, but Garmin posted $1.02.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw a very good increase of 7.24% to $3,347.44 million dollars. When comparing 2018 vs 2017, on the other hand, profit margin (that is, the net income divided by revenues) depreciated a -1.98% to 20.73%.
|2013||$2,630 M||-||$612 M23.3%||-|
|2014||$2,871 M||9.15%||$364 M12.7%||-40.53%|
|2015||$2,820 M||-1.76%||$456 M16.2%||25.26%|
|2016||$3,019 M||7.03%||$511 M16.9%||11.96%|
|2017||$3,122 M||3.41%||$709 M22.7%||38.80%|
|2018||$3,347 M||7.24%||$694 M20.7%||-2.11%|
Quarterly financial resultsGarmin reported $932.11 million in revenues for 2018-Q4, a 15.07% up compared to previous quarter. Reported quarter earnings marked $190.15 M with a profit margin of 20.40%. Profit margin decreased a -2.34% compared to previous quarter when profit margin was 22.74%. When comparing sales to same quarter last year, Garmin sales marked a shining gain and jumped a 8.04%.
|2017-Q2||$817 M||-||$171 M20.9%||-|
|2017-Q3||$743 M||-9.04%||$147 M19.8%||-13.77%|
|2017-Q4||$863 M||16.11%||$128 M14.9%||-12.83%|
|2018-Q1||$711 M||-17.61%||$129 M18.2%||0.68%|
|2018-Q2||$894 M||25.82%||$190 M21.3%||47.13%|
|2018-Q3||$810 M||-9.44%||$184 M22.7%||-3.22%|
|2018-Q4||$932 M||15.07%||$190 M20.4%||3.22%|
|2019-Q1||$766 M||-17.82%||$140 M18.3%||-26.28%|
Garmin ownershipWhen you are planning to buy shares of a company, it's always worth to review its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Garmin, 31.65% of all outstanding shares are owned by its staff.
In case of Garmin stock, 47.13% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for GRMN stock account 0.00%, no big difference from last month.
For a better context understanding, the following table shows ownership data compared to other related companies:
|Market cap||$14.9 B||$664.1 M||$6.4 B||$112.6 B||$504.4 M|
|Total shares||189.9 M||24.1 M||135.4 M||719.5 M||8.8 M|
|Float shares||148.8 M||23.5 M||134.4 M||686.9 M||6.9 M|
|- Institutional holdings (%)||47.1%||89.8%||96.7%||77.1%||72.5%|
|- Insider holdings (%)||31.6%||3.0%||0.7%||0.4%||13.9%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, August 23rd, 2019|
|Day range||$78.20 - $80.33|
|Average true range||$1.57|
|50d mov avg||$79.24|
|100d mov avg||$80.25|
|200d mov avg||$75.44|
Garmin performanceTo better understand Garmin performance you must becnhmark its gains with other related stocks in same sector or industry. We compared Garmin against Comtech Telecommunications, FLIR Systems, Honeywell International, Johnson Outdoors, KVH Industries, L3 Technologies, Motorola Solutions and Trimble in the following table:
Garmin competitorsWe picked a few stocks to conform a list of Garmin competitors to check if you are interested in investing in GRMN:
- Comtech Telecommunications (CMTL)
- FLIR Systems (FLIR)
- Honeywell International (HON)
- Johnson Outdoors (JOUT)
- KVH Industries (KVHI)
- L3 Technologies (LLL)
- Motorola Solutions (MSI)
- Trimble (TRMB)
Latest Garmin stock news
- Seeking AlphaNew Launches Will Propel GarminAugust 2, 2019
- InvestorPlaceLet Garmin Stock Cool off a Lot More Before Buying the DipMay 3, 2019
- InvestorPlaceFitbit and Garmin Both Are a Solid Play in 5G StocksApril 17, 2019
- Seeking AlphaGarmin: Strong And SteadyMarch 4, 2019
- InvestorPlaceThe Rally In Garmin Stock Has Gone Too Far, Too FastFebruary 21, 2019