Garmin (NYSE:GRMN) Reaches New 12-Month High on Earnings Beat

Key Points

• Garmin shares reached a new 52-week high of $246.70 following their latest earnings report, which featured an EPS of $2.17, exceeding estimates of $1.96.
• The company announced a quarterly dividend of $0.90 per share, reflecting an annualized dividend of $3.60 and a yield of 1.62%.
• Despite positive earnings, analyst ratings show mixed sentiment with JPMorgan raising their price target to $250 but maintaining a "neutral" rating on the stock.

Garmin Ltd. (NYSE:GRMN - Get Free Report) shares reached a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $246.70 and last traded at $225.42, with a volume of 15029 shares changing hands. The stock had previously closed at $239.30.

The scientific and technical instruments company reported $2.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.90 by $0.27. The firm had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.68 billion. Garmin had a net margin of 23.21% and a return on equity of 20.00%. The company's revenue was up 20.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.58 EPS.

Garmin Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, September 12th will be given a dividend of $0.90 per share. This represents a $3.60 dividend on an annualized basis and a yield of 1.6%. Garmin's dividend payout ratio (DPR) is presently 44.39%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Barclays reiterated an "underweight" rating and set a $167.00 target price (up from $152.00) on shares of Garmin in a research note on Wednesday. Morgan Stanley increased their target price on Garmin from $172.00 to $186.00 and gave the company an "underweight" rating in a research note on Thursday. Finally, JPMorgan Chase & Co. increased their target price on Garmin from $215.00 to $250.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th. Two research analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $222.00.

Insider Buying and Selling at Garmin

In other Garmin news, CFO Douglas G. Boessen sold 1,859 shares of the 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 directly owned 29,146 shares of the company's stock, valued at $6,266,390. This trade represents a 6.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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 completion of the sale, the chief executive officer directly owned 141,626 shares in the company, 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. Company insiders own 19.54% of the company's stock.

Institutional Investors Weigh In On Garmin

Large investors have recently added to or reduced their stakes in the stock. Kestra Private Wealth Services LLC increased its holdings in shares of Garmin by 18.7% during the first quarter. Kestra Private Wealth Services LLC now owns 8,559 shares of the scientific and technical instruments company's stock valued at $1,858,000 after purchasing an additional 1,347 shares during the period. Concurrent Investment Advisors LLC increased its holdings in shares of Garmin by 23.4% during the first quarter. Concurrent Investment Advisors LLC now owns 2,304 shares of the scientific and technical instruments company's stock valued at $500,000 after purchasing an additional 437 shares during the period. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Garmin by 46.7% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 89,715 shares of the scientific and technical instruments company's stock valued at $19,480,000 after purchasing an additional 28,543 shares during the period. Golden State Wealth Management LLC increased its holdings in shares of Garmin by 255.2% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the scientific and technical instruments company's stock valued at $96,000 after purchasing an additional 319 shares during the period. Finally, O Shaughnessy Asset Management LLC increased its holdings in shares of Garmin by 30.6% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 10,286 shares of the scientific and technical instruments company's stock valued at $2,122,000 after purchasing an additional 2,413 shares during the period. 81.60% of the stock is owned by institutional investors and hedge funds.

Garmin Stock Up 0.0%

The company has a 50 day moving average of $212.65 and a two-hundred day moving average of $208.95. The firm has a market cap of $42.11 billion, a P/E ratio of 26.98, a PEG ratio of 2.43 and a beta of 0.99.

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.