Garmin (NYSE:GRMN) Hits New 12-Month High Following Better-Than-Expected Earnings

Key Points

• Garmin shares reached a new 52-week high after the company reported quarterly EPS of $2.81, beating estimates of $2.30, while revenue rose 11.4% year over year to $2.02 billion.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $269.40, although several firms recently downgraded the stock or lowered their targets.
• Institutional investors own 81.6% of Garmin, while insiders own 14.8%; recent insider activity included stock sales by the CFO and a director.

Shares of Garmin Ltd. (NYSE:GRMN - Get Free Report) hit a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $293.64 and last traded at $295.1370, with a volume of 256727 shares changing hands. The stock had previously closed at $253.65.

The scientific and technical instruments company reported $2.81 earnings per share for the quarter, topping the consensus estimate of $2.30 by $0.51. Garmin had a net margin of 23.26% and a return on equity of 20.07%. The business had revenue of $2.02 billion for the quarter, compared to analyst estimates of $1.93 billion. During the same quarter last year, the firm earned $2.17 EPS. Garmin's quarterly revenue was up 11.4% compared to the same quarter last year. Garmin has set its FY 2026 guidance at 10.000-10.000 EPS.

Analysts Set New Price Targets

A number of analysts have recently issued reports on GRMN shares. Wall Street Zen downgraded shares of Garmin from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. Barclays reduced 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. Zacks Research lowered shares of Garmin from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 1st. JPMorgan Chase & Co. boosted their price target on shares of Garmin from $265.00 to $285.00 and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Garmin in a research note on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Garmin has an average rating of "Moderate Buy" and an average target price of $269.40.

Insider Transactions at Garmin

In other news, CFO Douglas G. Boessen sold 2,000 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $237.91, for a total transaction of $475,820.00. Following the transaction, the chief financial officer directly owned 26,049 shares of the company's stock, valued at approximately $6,197,317.59. This trade represents a 7.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Joseph J. Hartnett sold 643 shares of the firm's stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $263.57, for a total value of $169,475.51. Following the transaction, the director owned 21,277 shares in the company, valued at approximately $5,607,978.89. This trade represents a 2.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 14.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Norges Bank bought a new stake in Garmin during the fourth quarter worth about $395,234,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in Garmin in the fourth quarter valued at approximately $214,382,000. Man Group plc raised its position in Garmin by 232.0% during the fourth quarter. Man Group plc now owns 812,390 shares of the scientific and technical instruments company's stock valued at $164,793,000 after purchasing an additional 567,711 shares in the last quarter. Bank of America Corp DE lifted its stake in Garmin by 73.8% during the first quarter. Bank of America Corp DE now owns 1,295,199 shares of the scientific and technical instruments company's stock worth $300,499,000 after purchasing an additional 549,954 shares during the last quarter. Finally, Amundi lifted its stake in Garmin by 82.5% during the first quarter. Amundi now owns 1,017,314 shares of the scientific and technical instruments company's stock worth $236,027,000 after purchasing an additional 459,980 shares during the last quarter. Institutional investors own 81.60% of the company's stock.

Garmin Trading Up 15.8%

The company has a 50 day moving average price of $239.62 and a 200-day moving average price of $235.51. The company has a market cap of $56.67 billion, a P/E ratio of 32.76, a price-to-earnings-growth ratio of 2.86 and a beta of 0.90.

Garmin Company 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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