Garmin stock: buy or sell?

GRMN stock price: $96.92 0.85% At close on November 19th, 2019

Updated on:
November 19th, 2019

4

After reaching all time highs on November 11th, Garmin stepped up 0.85% to $96.92.

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 plan that fits your character as inversor. At Stocks2.com, we 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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean GRMN will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Garmin stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 5 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.
Is GRMN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-6-7JPMorgan Chase & Co.UnderweightNeutral
2019-6-7JPMorgan Chase & Co.UnderweightNeutral
2019-5-2Morgan Stanleyn/aHold
2019-2-25Credit Suisse Groupn/aUnderperform
2019-2-21Longbow ResearchBuyNeutral

Garmin stock analysis

Daily outlook

After topping to all time highs on November/11, Garmin stepped up 0.85% today to $96.92.

Garmin stepped up 0.85% today to $96.92 after reaching all time highs on November 11th. GRMN shows a short term strength with several rising tops and rising bottoms. In the very short term, yesterday it marked a new bottom at $95.00 that should act a support if Garmin starts a trading flat base in the range of $95.00 - $97.60 If Garmin breakouts over $97.60 with average or higher volume, this would be a signal that the uptrend resumes. Since SMA50d and SMA100d crossed up on September, GRMN price climbed $13.57 per share (16.28%). On August GRMN price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On Nov 11th, GRMN hit new all time highs, pushing higher previous ATH of $96.44 recorded on Oct/30. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

GRMN stock chart (daily)

Weekly outlook

Shares of Garmin closed this week at $96.92 and gained a tiny 1.33%. Late October GRMN climbed an amazing 7.65% in just one week.

Garmin stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last price record Garmin marked last week. Late December 2018 GRMN price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Early September, SMA10w and SMA20w crossed up triggering a rise of 19.61%.

GRMN stock chart (weekly)

Garmin stock price history

Garmin stock went public on December 8th, 2000 with a price of $4.571. Since then, GRMN stock surged a 2,020.80%, with an average of 112.30% per year. If you had invested right after GRMN's IPO a $1,000 in Garmin stock in 2000, it would worth $20,208.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Garmin stock historical price chart

GRMN stock reached all-time highs on Nov/11 with a price of $97.60.

Garmin stock price target is $75.70

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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 detected 3 price targets for Garmin stock released in the last 30 days:
GRMN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-7JPMorgan Chase & Co.Upgrades$77.00$75.00-2.6%
2019-5-2Morgan StanleySet Price Targetn/a$81.00-
2019-2-25Credit Suisse GroupReiterates$58.00$71.0022.4%
(in average)$67.50$75.7012.0%
Moving in a range from $81.00 and $71.00, the price prediction for Garmin stock is $75.70. In average, analysts' outlook on GRMN price target is positive, improving the target by a 12.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Garmin reported its latest financial data, posting a dazzling climb for the Earnings per Share (EPS) ratio. Analyst were expecting $0.79 per share, but Garmin posted $1.02.
GRMN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.91n/a
2017-Q32017-11-010.660.7513.6%
2017-Q42018-02-210.750.795.3%
2018-Q12018-05-020.560.6821.4%
2018-Q22018-08-010.870.9913.8%
2018-Q32018-10-310.75133.3%
2018-Q42019-02-200.791.0229.1%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a more than good growth of 7.24% to $3,347.44 M USD. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) decreased a -1.98% to 20.73%.

GRMN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,630 M-$612 M23.3%-
2014$2,871 M9.15%$364 M12.7%-40.53%
2015$2,820 M-1.76%$456 M16.2%25.26%
2016$3,019 M7.03%$511 M16.9%11.96%
2017$3,122 M3.41%$709 M22.7%38.80%
2018$3,347 M7.24%$694 M20.7%-2.11%

Quarterly financial results

Garmin reported $932.11 million in sales for 2018-Q4, a 15.07% improvement compared to previous quarter. Reported quarter income marked $190.15 million with a profit margin of 20.40%. Profit margin depreciated a -2.34% compared to previous quarter when profit margin was 22.74%. When comparing sales to same quarter last year, Garmin sales marked an excellent gain and soared a 8.04%.
GRMN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$817 M-$171 M20.9%-
2017-Q3$743 M-9.04%$147 M19.8%-13.77%
2017-Q4$863 M16.11%$128 M14.9%-12.83%
2018-Q1$711 M-17.61%$129 M18.2%0.68%
2018-Q2$894 M25.82%$190 M21.3%47.13%
2018-Q3$810 M-9.44%$184 M22.7%-3.22%
2018-Q4$932 M15.07%$190 M20.4%3.22%
2019-Q1$766 M-17.82%$140 M18.3%-26.28%

Garmin ownership

When you are planning to invest in a company, it's worth to have a look 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 next table shows ownership data compared to other related companies:

GRMNCMTLFLIRHONJOUT
Market cap$18.4 B$882.7 M$7.2 B$128.7 B$571.5 M
Total shares190.1 M24.3 M134.2 M714.5 M8.8 M
Float shares138.9 M23.6 M133.0 M682.2 M6.9 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 selling0.0%0.0%0.0%0.0%0.0%

Garmin summary

Tuesday, November 19th, 2019
Open$96.28
Close$96.92
Day range$95.49 - $97.18
Previous close$96.10
Session gain0.85%
Average true range$1.89
50d mov avg$88.48
100d mov avg$83.73
200d mov avg$82.00
Daily patternlb03a
Weekly pattern lt06a

Garmin performance

To better understand Garmin performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Garmin to Comtech Telecommunications, FLIR Systems, Honeywell International, Johnson Outdoors, KVH Industries, L3 Technologies, Motorola Solutions and Trimble:
Stock3m6m12m
GRMNGarmin24.51%26.54%53.38%
CMTLComtech Telecommu...36.68%65.39%43.47%
FLIRFLIR Systems13.90%8.81%18.36%
HONHoneywell Interna...15.63%9.11%28.25%
JOUTJohnson Outdoors17.23%-17.46%-7.79%
KVHIKVH Industries18.49%13.34%-1.70%
LLLL3 Technologies19.23%45.97%29.50%
MSIMotorola Solution...-4.94%11.00%35.60%
TRMBTrimble7.28%-3.17%8.19%

Garmin competitors

One check before trading any stock is to review a list of its competitors, in this case for Garmin. We chose 8 companies as Garmin competitors as they are in the same industry or have similar market objectives.

Latest Garmin stock news