Garmin (NYSE:GRMN) Trading Down 3.5% – Here’s Why

Shares of Garmin Ltd. (NYSE:GRMN) dropped 3.5% during mid-day trading on Monday . The company traded as low as $206.11 and last traded at $206.44. Approximately 86,923 shares were traded during mid-day trading, a decline of 89% from the average daily volume of 781,458 shares. The stock had previously closed at $213.90.

Analyst Ratings Changes

GRMN has been the topic of a number of recent research reports. Tigress Financial upped their target price on Garmin from $265.00 to $285.00 and gave the company a “strong-buy” rating in a research note on Wednesday, February 26th. Barclays upped their target price on Garmin from $158.00 to $188.00 and gave the company an “underweight” rating in a research note on Thursday, February 20th. Morgan Stanley raised Garmin to a “sell” rating and upped their target price for the company from $164.00 to $171.00 in a research note on Tuesday, February 11th. Finally, JPMorgan Chase & Co. upped their target price on Garmin from $219.00 to $260.00 and gave the company a “neutral” rating in a research note on Thursday, February 20th. Three equities 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 company’s stock. Based on data from MarketBeat, Garmin currently has an average rating of “Hold” and a consensus price target of $210.80.

Garmin Trading Down 2.8 %

The company has a market cap of $39.73 billion, a PE ratio of 28.25, a price-to-earnings-growth ratio of 1.36 and a beta of 0.96. The business has a 50 day simple moving average of $217.05 and a two-hundred day simple moving average of $201.23.

Garmin (NYSE:GRMN) last issued its quarterly earnings results on Wednesday, February 19th. The scientific and technical instruments company reported $2.41 earnings per share for the quarter, topping analysts’ consensus estimates of $1.90 by $0.51. Garmin had a return on equity of 19.31% and a net margin of 22.42%. The company had revenue of $1.82 billion for the quarter, compared to analyst estimates of $1.70 billion. During the same quarter in the prior year, the company posted $1.72 EPS. The business’s revenue for the quarter was up 22.9% compared to the same quarter last year. On average, equities research analysts expect that Garmin Ltd. will post 7.8 earnings per share for the current fiscal year.

Garmin Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Friday, March 13th will be issued a dividend of $0.90 per share. The ex-dividend date of this dividend is Friday, March 13th. This represents a $3.60 dividend on an annualized basis and a dividend yield of 1.74%. Garmin’s payout ratio is 41.04%.

Insider Transactions at Garmin

In other news, CEO Clifton A. Pemble sold 7,202 shares of the company’s stock in a transaction on Wednesday, February 26th. The stock was 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 directly owns 149,525 shares in the company, valued at $33,963,108.50. This represents a 4.60 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP Susan Lyman sold 2,829 shares of the company’s stock in a transaction on Monday, March 10th. The stock was sold at an average price of $215.51, for a total value of $609,677.79. Following the sale, the vice president now owns 8,432 shares of the company’s stock, valued at approximately $1,817,180.32. The trade was a 25.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 26,103 shares of company stock worth $5,852,364 in the last ninety days. Insiders own 19.54% of the company’s stock.

Institutional Trading of Garmin

Several large investors have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC increased its holdings in Garmin by 165.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 61,172 shares of the scientific and technical instruments company’s stock valued at $12,617,000 after purchasing an additional 38,151 shares in the last quarter. Lansforsakringar Fondforvaltning AB publ acquired a new stake in Garmin in the 4th quarter valued at $10,174,000. Siemens Fonds Invest GmbH increased its holdings in Garmin by 45.7% in the 4th quarter. Siemens Fonds Invest GmbH now owns 23,640 shares of the scientific and technical instruments company’s stock valued at $4,876,000 after purchasing an additional 7,414 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in Garmin in the 4th quarter valued at $39,748,000. Finally, Fidelity D & D Bancorp Inc. increased its holdings in Garmin by 13.2% in the 4th quarter. Fidelity D & D Bancorp Inc. now owns 1,857 shares of the scientific and technical instruments company’s stock valued at $383,000 after purchasing an additional 217 shares in the last quarter. 81.60% of the stock is currently owned by institutional investors and hedge funds.

About Garmin

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.