Garmin Ltd. Declares Quarterly Dividend of $0.90 (NYSE:GRMN)

Key Points

• Garmin Ltd. has declared a quarterly dividend of $0.90 per share, which translates to an annualized dividend of $3.60 and a yield of 1.50%, payable on September 26th to shareholders of record from September 12th.
• The company's recent earnings report showed a profit of $2.17 per share, exceeding analysts' expectations and indicating a 20.4% year-over-year revenue increase to $1.81 billion.
• Analysts have mixed opinions on Garmin's stock, with a consensus "Hold" rating and varying price targets reflecting different market outlooks.

Garmin Ltd. (NYSE:GRMN - Get Free Report) declared a quarterly dividend on Wednesday, July 30th, RTT News reports. Shareholders of record on Friday, September 12th will be given a dividend of 0.90 per share by the scientific and technical instruments company on Friday, September 26th. This represents a c) dividend on an annualized basis and a yield of 1.6%.

Garmin has a payout ratio of 42.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Garmin to earn $7.98 per share next year, which means the company should continue to be able to cover its $3.60 annual dividend with an expected future payout ratio of 45.1%.

Garmin Trading Up 0.0%

NYSE:GRMN traded up $0.03 during mid-day trading on Friday, hitting $218.79. 1,324,517 shares of the company's stock traded hands, compared to its average volume of 906,307. The firm has a 50 day moving average of $212.65 and a two-hundred day moving average of $208.95. The firm has a market capitalization of $42.11 billion, a price-to-earnings ratio of 26.98, a price-to-earnings-growth ratio of 2.43 and a beta of 0.99. Garmin has a 12 month low of $160.71 and a 12 month high of $246.50.

Garmin (NYSE:GRMN - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The scientific and technical instruments company reported $2.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.90 by $0.27. Garmin had a net margin of 23.21% and a return on equity of 20.00%. The business had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.68 billion. During the same quarter last year, the company posted $1.58 earnings per share. Garmin's quarterly revenue was up 20.4% on a year-over-year basis. As a group, equities research analysts expect that Garmin will post 7.8 earnings per share for the current year.

Insider Activity

In related news, CFO Douglas G. Boessen sold 1,859 shares of the business's stock in a transaction on Thursday, July 3rd. The stock was sold at an average price of $215.00, for a total value of $399,685.00. Following the sale, the chief financial officer owned 29,146 shares of the company's stock, valued at $6,266,390. The trade was a 6.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Clifton A. Pemble sold 7,899 shares of the stock in a transaction on Monday, June 16th. The stock was sold at an average price of $203.25, for a total value of $1,605,471.75. Following the transaction, the chief executive officer owned 141,626 shares of the company's stock, valued at $28,785,484.50. This represents a 5.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 19.54% of the company's stock.

Institutional Investors Weigh In On Garmin

Large investors have recently made changes to their positions in the company. GAMMA Investing LLC lifted its position in shares of Garmin by 25,047.9% during the first quarter. GAMMA Investing LLC now owns 885,456 shares of the scientific and technical instruments company's stock worth $192,259,000 after purchasing an additional 881,935 shares in the last quarter. AQR Capital Management LLC raised its position in shares of Garmin by 79.3% during the 1st quarter. AQR Capital Management LLC now owns 1,585,170 shares of the scientific and technical instruments company's stock valued at $340,574,000 after acquiring an additional 700,967 shares during the last quarter. Congress Asset Management Co. lifted its stake in shares of Garmin by 673.4% in the 1st quarter. Congress Asset Management Co. now owns 441,318 shares of the scientific and technical instruments company's stock valued at $95,823,000 after purchasing an additional 384,258 shares during the period. Nuveen LLC bought a new position in shares of Garmin in the 1st quarter worth $78,900,000. Finally, Vanguard Group Inc. boosted its position in shares of Garmin by 2.0% in the 1st quarter. Vanguard Group Inc. now owns 18,425,166 shares of the scientific and technical instruments company's stock worth $4,000,656,000 after purchasing an additional 357,458 shares during the last quarter. Institutional investors own 81.60% of the company's stock.

Garmin Company Profile

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform.