Garmin stock: buy or sell?
November 19th, 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 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.
|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?
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.
|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|
Garmin stock analysis
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.
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%.
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 $75.70How 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:
|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%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%.
|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 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%.
|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 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:
|Market cap||$18.4 B||$882.7 M||$7.2 B||$128.7 B||$571.5 M|
|Total shares||190.1 M||24.3 M||134.2 M||714.5 M||8.8 M|
|Float shares||138.9 M||23.6 M||133.0 M||682.2 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%|
|Tuesday, November 19th, 2019|
|Day range||$95.49 - $97.18|
|Average true range||$1.89|
|50d mov avg||$88.48|
|100d mov avg||$83.73|
|200d mov avg||$82.00|
Garmin performanceTo 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:
Garmin competitorsOne 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.
- 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