Garmin (NYSE:GRMN) Stock Crosses Below 50-Day Moving Average - Time to Sell?

Garmin Ltd. (NYSE:GRMN - Get Free Report)'s stock price crossed below its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $283.31 and traded as low as $265.47. Garmin shares last traded at $272.5620, with a volume of 1,993,912 shares trading hands.

Key Garmin News

Here are the key news stories impacting Garmin this week:

• Positive Sentiment: Garmin reported third-quarter revenue of approximately $1.99 billion, up 12.2% year over year, while earnings per share of $2.76 exceeded the $2.38 analyst consensus. Garmin Q3 Earnings Beat Estimates
• Positive Sentiment: Operating income rose 34% to a record $611.6 million, with operating margin expanding to 30.8% from 25.8% a year earlier. Gross margin also improved to 63.3%. Garmin Announces Third Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 outlook to approximately $8.15 billion in revenue and $10.80 in pro forma EPS, up from prior EPS guidance of $10.00. Growth was led by fitness, outdoor and marine products, with fitness revenue up 16% and outdoor revenue up 20%. Garmin Q3 Earnings Key Takeaways
• Neutral Sentiment: Automotive OEM revenue declined 20%, partially offsetting gains in Garmin’s other businesses. The company also generated $393.9 million in operating cash flow and paid $202 million in dividends. Garmin Q3 Revenue Rises 12 Percent
• Negative Sentiment: Investors focused on management’s warning that soaring memory-chip prices are expected to pressure margins in upcoming periods. That concern appears to have outweighed the earnings beat and raised guidance, prompting the stock’s decline. Why Garmin Stock Dropped After Record Results

Wall Street Analysts Forecast Growth

Several research firms have recently commented on GRMN. Barclays lifted their price target on Garmin from $238.00 to $297.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. Zacks Research cut shares of Garmin from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 12th. Tigress Financial reissued a "strong-buy" rating on shares of Garmin in a report on Thursday, August 6th. UBS Group set a $370.00 price objective on shares of Garmin in a report on Thursday, August 6th. Finally, Morgan Stanley raised their price objective on shares of Garmin from $249.00 to $289.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $313.71.

Garmin Price Performance

The stock has a market capitalization of $52.56 billion, a price-to-earnings ratio of 28.10, a PEG ratio of 3.28 and a beta of 0.82. The business has a fifty day moving average of $283.31 and a 200 day moving average of $252.97.

Garmin (NYSE:GRMN - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The scientific and technical instruments company reported $2.76 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.38. The company had revenue of $1.99 billion during the quarter, compared to analyst estimates of $1.99 billion. Garmin had a return on equity of 20.95% and a net margin of 24.47%. The firm's revenue for the quarter was up 12.2% compared to the same quarter last year. During the same period in the prior year, the business posted $1.99 earnings per share. On average, equities research analysts expect that Garmin Ltd. will post 10.08 EPS for the current year.

Insider Buying and Selling at Garmin

In other news, insider Cheng-Wei Wang sold 9,941 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $299.36, for a total value of $2,975,937.76. Following the transaction, the insider owned 29,506 shares of the company's stock, valued at $8,832,916.16. This represents a 25.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Joshua Maxfield sold 1,152 shares of the company's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $291.13, for a total value of $335,381.76. Following the completion of the transaction, the vice president directly owned 15,042 shares in the company, valued at approximately $4,379,177.46. This trade represents a 7.11% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,079 shares of company stock worth $3,600,099 over the last quarter. 14.80% of the stock is currently owned by company insiders.

Institutional Trading of Garmin

Institutional investors and hedge funds have recently bought and sold shares of the stock. Arrowstreet Capital Limited Partnership boosted its stake in shares of Garmin by 121.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 107,929 shares of the scientific and technical instruments company's stock valued at $25,041,000 after purchasing an additional 59,229 shares during the period. Plato Investment Management Ltd acquired a new position in shares of Garmin in the second quarter valued at approximately $1,447,000. Quantinno Capital Management LP grew its holdings in shares of Garmin by 51.2% in the first quarter. Quantinno Capital Management LP now owns 351,241 shares of the scientific and technical instruments company's stock valued at $81,491,000 after purchasing an additional 119,011 shares in the last quarter. Commerzbank Aktiengesellschaft FI purchased a new stake in Garmin during the 2nd quarter worth approximately $1,237,000. Finally, Engineers Gate Manager LP increased its stake in Garmin by 198.8% during the 2nd quarter. Engineers Gate Manager LP now owns 7,452 shares of the scientific and technical instruments company's stock worth $1,770,000 after buying an additional 4,958 shares during the period. 81.60% of the stock is currently owned by hedge funds and other institutional investors.

Garmin Company Profile

Garmin Ltd. NYSE: GRMN designs and manufactures GPS-enabled technology and smart devices for fitness, outdoor recreation, aviation, marine, and automotive markets. Its product portfolio includes smartwatches, cycling computers, sports and activity trackers, satellite communication devices, navigation systems, and related sensors and accessories.

The company also develops aviation systems and avionics, marine chartplotters and sonar equipment, and navigation and infotainment solutions for vehicle manufacturers.

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