Garmin stock: buy or sell?

GRMN stock price: $78.36 -2.39% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

3

After climbing for 4 days, Friday Garmin fell a fatal -2.39%, closing at $78.36.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
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
2019-1-7Morgan StanleyEqual WeightEqual Weight

Garmin stock analysis

Daily outlook

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.

GRMN stock chart (daily)

Weekly outlook

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.

GRMN stock chart (weekly)

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 $74.30

Predicting 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:
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%
2019-1-7Morgan StanleyLowers Target$77.00$70.00-9.1%
(in average)$70.70$74.305.0%
Moving in a range from $81.00 and $70.00, the price target for GRMN stock is $74.30. In average, analysts' outlook on GRMN price target is positive, increasing the forecast by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
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 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%.

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 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%.
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 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:

GRMNCMTLFLIRHONJOUT
Market cap$14.9 B$664.1 M$6.4 B$112.6 B$504.4 M
Total shares189.9 M24.1 M135.4 M719.5 M8.8 M
Float shares148.8 M23.5 M134.4 M686.9 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

Friday, August 23rd, 2019
Open$79.96
Close$78.36
Day range$78.20 - $80.33
Previous close$80.28
Session gain-2.39%
Average true range$1.57
50d mov avg$79.24
100d mov avg$80.25
200d mov avg$75.44
Daily patternlt06a
Weekly pattern

Garmin performance

To 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:
Stock3m6m12m
GRMNGarmin1.63%-4.39%24.64%
CMTLComtech Telecommu...24.71%2.53%-23.54%
FLIRFLIR Systems-4.47%-10.09%-22.35%
HONHoneywell Interna...-5.63%3.17%5.85%
JOUTJohnson Outdoors-27.36%-15.17%-44.64%
KVHIKVH Industries-6.72%-20.81%-27.84%
LLLL3 Technologies19.23%45.97%29.50%
MSIMotorola Solution...16.82%26.22%40.69%
TRMBTrimble-9.74%-8.25%-10.49%

Garmin competitors

We picked a few stocks to conform a list of Garmin competitors to check if you are interested in investing in GRMN:

Latest Garmin stock news