Resona Asset Management Co. Ltd. has acquired a significant stake in Garmin Ltd. (NYSE: GRMN), investing approximately $10.3 million to purchase 49,358 shares in the second quarter of 2023, according to Holdings Channel. This investment reflects a growing interest among institutional investors in the scientific and technical instruments company.
In addition to Resona’s new position, several other institutional investors have adjusted their stakes in Garmin recently. Vanguard Group Inc. increased its holdings by 2.0% during the first quarter, now owning 18,425,166 shares valued at around $4 billion after acquiring an additional 357,458 shares. Invesco Ltd. also raised its stake by 9.0%, bringing its total to 1,862,153 shares worth approximately $404.3 million after acquiring 153,267 shares.
Analyst Ratings and Market Performance
AQR Capital Management LLC significantly boosted its position by 79.3% in the first quarter, now holding 1,585,170 shares valued at around $340.6 million. UBS AM, a business unit of UBS Asset Management Americas LLC, increased its stake by 21.2%, owning 1,210,827 shares valued at approximately $262.9 million. Charles Schwab Investment Management Inc. raised its position by 0.3%, now owning 892,606 shares valued at $193.8 million.
Currently, institutional investors and hedge funds hold approximately 81.6% of Garmin’s stock. Analysts have offered mixed reviews on Garmin’s performance. Morgan Stanley raised its target price from $193.00 to $195.00 while maintaining an “underweight” rating. Conversely, JPMorgan Chase & Co. increased its price objective from $215.00 to $250.00 and provided a “neutral” rating.
Tigress Financial set a more optimistic price target, raising it from $285.00 to $305.00 and assigning a “strong-buy” rating. Barclays also adjusted its target price from $167.00 to $208.00, continuing to rate the stock as “underweight.” As of now, Garmin holds an average rating of “Hold” with a consensus target price of $239.50, according to MarketBeat.com.
Garmin’s Financial Overview
Garmin’s stock opened at $200.91 on the latest trading day, reflecting a 1.5% decline. The company boasts a market capitalization of $38.64 billion, with a price-to-earnings (PE) ratio of 24.74 and a price-to-earnings growth (PEG) ratio of 2.41. Over the past year, Garmin’s shares have fluctuated between a low of $169.26 and a high of $261.69, with a 50-day moving average of $239.16 and a two-hundred day moving average of $222.21.
Garmin recently announced its quarterly earnings results for the period ending on October 29, 2023. The company reported earnings per share (EPS) of $1.99, meeting analysts’ expectations. Garmin achieved a net margin of 22.63% and a return on equity of 19.42%, generating revenue of $1.77 billion during the quarter, slightly below the anticipated $1.78 billion. Year-over-year, Garmin’s revenue increased by 11.7%.
Looking ahead, Garmin has projected its fiscal year 2025 guidance at EPS of 8.150. Analysts forecast that the company will post an EPS of approximately 7.8 for the current year.
In related news, Garmin insider Cheng-Wei Wang sold 10,202 shares on August 27, 2023, at an average price of $232.48, totaling nearly $2.37 million. Following this sale, Wang now holds 36,092 shares valued at approximately $8.39 million, representing a decrease of 22.04% in his position.
Insider ownership currently stands at 15.38% of the company’s stock. Garmin Ltd. specializes in designing, developing, manufacturing, marketing, and distributing a variety of wireless devices globally, particularly in the fitness segment, which includes running and multi-sport watches, cycling products, smartwatches, and associated accessories.
For those interested in tracking further developments regarding Garmin and its shareholders, HoldingsChannel.com provides the latest updates on 13F filings and insider trades.
