Garmin (NYSE:GRMN) Shares Gap Down on Disappointing Earnings

Garmin Ltd. (NYSE:GRMN - Get Free Report) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $204.10, but opened at $185.98. Garmin shares last traded at $187.95, with a volume of 492,635 shares.

The scientific and technical instruments company reported $1.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.62 by ($0.01). Garmin had a net margin of 22.42% and a return on equity of 19.31%. The business had revenue of $1.54 billion for the quarter, compared to analysts' expectations of $1.50 billion. During the same period last year, the firm posted $1.42 earnings per share. Garmin's quarterly revenue was up 11.1% on a year-over-year basis.

Garmin Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Shareholders of record on Friday, March 13th will be issued a $0.90 dividend. The ex-dividend date is Friday, March 13th. This represents a $3.60 annualized dividend and a yield of 1.88%. Garmin's dividend payout ratio (DPR) is presently 47.37%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on GRMN shares. Tigress Financial boosted their price target on shares of Garmin from $265.00 to $285.00 and gave the company a "strong-buy" rating in a research report on Wednesday, February 26th. Morgan Stanley increased their target price on Garmin from $159.00 to $172.00 and gave the stock an "underweight" rating in a research report on Thursday. JPMorgan Chase & Co. dropped their price target on Garmin from $220.00 to $215.00 and set a "neutral" rating on the stock in a research report on Thursday. Finally, Barclays decreased their price objective on Garmin from $188.00 to $152.00 and set an "underweight" rating for the company in a report on Wednesday. Three research analysts have rated the stock with a sell rating, two have given a hold rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $194.80.

Insider Activity

In related news, CEO Clifton A. Pemble sold 7,202 shares of the firm's stock in a transaction that occurred on Wednesday, February 26th. The shares were sold at an average price of $227.14, for a total transaction of $1,635,862.28. Following the completion of the sale, the chief executive officer now owns 149,525 shares of the company's stock, valued at $33,963,108.50. This trade represents a 4.60 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Douglas G. Boessen sold 2,763 shares of the company's stock in a transaction that occurred on Friday, February 28th. The shares were sold at an average price of $226.55, for a total value of $625,957.65. Following the completion of the transaction, the chief financial officer now directly owns 30,936 shares in the company, valued at $7,008,550.80. This trade represents a 8.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 24,342 shares of company stock worth $5,486,094 over the last three months. 19.54% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Garmin

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Golden State Wealth Management LLC purchased a new position in shares of Garmin during the fourth quarter valued at approximately $26,000. Aster Capital Management DIFC Ltd raised its stake in Garmin by 864.3% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 135 shares of the scientific and technical instruments company's stock valued at $28,000 after buying an additional 121 shares during the last quarter. Pinnacle Bancorp Inc. bought a new position in shares of Garmin during the 4th quarter valued at $29,000. TFC Financial Management Inc. boosted its stake in shares of Garmin by 1,633.3% in the 1st quarter. TFC Financial Management Inc. now owns 156 shares of the scientific and technical instruments company's stock worth $34,000 after buying an additional 147 shares during the last quarter. Finally, Wayfinding Financial LLC bought a new stake in shares of Garmin in the first quarter worth $34,000. Institutional investors own 81.60% of the company's stock.

Garmin Price Performance

The business has a 50-day moving average of $203.74 and a 200 day moving average of $206.67. The company has a market cap of $36.93 billion, a PE ratio of 26.22, a PEG ratio of 1.36 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.