SummitTX Capital L.P. Buys 10,670 Shares of Garmin Ltd. $GRMN

Key Points

• SummitTX Capital increased its Garmin stake by 296.6% in the first quarter, purchasing 10,670 additional shares and ending the period with 14,268 shares valued at approximately $3.31 million.
• Garmin reported strong quarterly results, with EPS of $2.08 beating estimates of $1.84 and revenue rising 14% year over year to $1.75 billion. Analysts project full-year EPS of $9.53.
• Garmin shares opened at $253.45, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus rating and an average price target of $269.40; however, the CFO and a director recently sold shares.

SummitTX Capital L.P. grew its stake in shares of Garmin Ltd. (NYSE:GRMN - Free Report) by 296.6% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 14,268 shares of the scientific and technical instruments company's stock after buying an additional 10,670 shares during the period. SummitTX Capital L.P.'s holdings in Garmin were worth $3,310,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Reflection Asset Management purchased a new stake in Garmin in the 4th quarter worth approximately $32,000. Archer Investment Corp bought a new stake in Garmin during the 1st quarter worth approximately $37,000. Atlas Capital Advisors Inc. purchased a new position in Garmin during the fourth quarter valued at approximately $34,000. Cassaday & Co Wealth Management LLC purchased a new position in Garmin during the first quarter valued at approximately $44,000. Finally, Avalon Trust Co bought a new position in shares of Garmin in the first quarter worth approximately $47,000. 81.60% of the stock is currently owned by institutional investors.

Garmin Price Performance

GRMN stock opened at $253.45 on Wednesday. Garmin Ltd. has a 1-year low of $186.67 and a 1-year high of $273.32. The company has a market capitalization of $48.88 billion, a price-to-earnings ratio of 28.26, a PEG ratio of 2.86 and a beta of 0.90. The business has a 50 day simple moving average of $239.62 and a two-hundred day simple moving average of $235.51.

Garmin (NYSE:GRMN - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The scientific and technical instruments company reported $2.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.84 by $0.24. The business had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.72 billion. Garmin had a net margin of 23.26% and a return on equity of 20.07%. The company's revenue was up 14.0% on a year-over-year basis. During the same period last year, the firm posted $1.61 EPS. Sell-side analysts anticipate that Garmin Ltd. will post 9.53 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Zacks Research cut shares of Garmin from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 1st. JPMorgan Chase & Co. lifted their target price on shares of Garmin from $265.00 to $285.00 and gave the company a "neutral" rating in a research note on Thursday, April 16th. Barclays dropped their target price on shares of Garmin from $240.00 to $238.00 and set an "equal weight" rating for the company in a report on Thursday, April 30th. Weiss Ratings reiterated a "buy (b)" rating on shares of Garmin in a research note on Monday, June 8th. Finally, Morgan Stanley set a $249.00 price target on Garmin in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Garmin currently has a consensus rating of "Moderate Buy" and a consensus target price of $269.40.

Insiders Place Their Bets

In other Garmin news, CFO Douglas G. Boessen sold 2,000 shares of Garmin stock in a transaction on Friday, June 5th. The shares were sold at an average price of $237.91, for a total value of $475,820.00. Following the sale, the chief financial officer directly owned 26,049 shares in the company, valued at approximately $6,197,317.59. The trade was a 7.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Joseph J. Hartnett sold 643 shares of the business's stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $263.57, for a total transaction of $169,475.51. Following the completion of the sale, the director owned 21,277 shares in the company, valued at approximately $5,607,978.89. The trade was a 2.93% decrease in their position. The SEC filing for this sale provides additional information. 14.80% of the stock is currently owned by corporate insiders.

Garmin Profile

Garmin Ltd. is a technology company best known for designing and manufacturing navigation, communication and information devices that leverage global positioning system (GPS) technology. The company serves a diverse set of markets including consumer fitness and wearables, automotive navigation, aviation avionics, marine electronics and outdoor handheld devices. Garmin's products combine hardware, mapping and software services to deliver location-aware solutions for personal, recreational and professional uses.

Garmin's product lineup includes wearable fitness and multisport watches (Forerunner, Fenix, Venu), cycling computers and accessories (Edge, Varia), handheld and handheld-mounted GPS devices for outdoor activities, automotive and portable navigation units, marine chartplotters and fishfinders, and certified avionics for fixed- and rotary-wing aircraft.

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