Garmin stock soars to all-time high of $207.31 amid robust growth

Published 06/11/2024, 15:54
Updated 06/11/2024, 15:59
Garmin stock soars to all-time high of $207.31 amid robust growth

Garmin Ltd . (NYSE:GRMN), a global leader in GPS navigation and wearable technology, has reached an all-time high of $207.31, marking a significant milestone for the company's stock performance. This peak reflects a remarkable 78.06% increase in the 1-year change data, showcasing the company's strong growth trajectory and investor confidence. Garmin's innovative product lineup, expansion into new markets, and consistent financial results have contributed to this impressive climb, as the company continues to outpace expectations and solidify its position in the tech industry.

In other recent news, Garmin Ltd. has been the subject of robust financial performance, leading to JPMorgan raising the company's stock target to $212 from the previous $178, while maintaining a neutral rating. This adjustment comes in the wake of Garmin's record-breaking third quarter for 2024, which saw a 24% increase in consolidated revenue to $1.59 billion and a 62% year-over-year increase in operating income. Despite a softening outlook in the Auto OEM segment, Garmin ended the quarter with a strong balance sheet, including $3.5 billion in cash and marketable securities.

The company's performance, particularly in the Wearables sector, exceeded expectations. This success is credited to strong sales of both new and previous generation running products, as well as the latest wellness and fēnix offerings. JPMorgan subsequently raised its revenue and profit forecast for Garmin based on the company's overall strong performance.

Given these recent developments, the firm's revised earnings outlook for Garmin is now $7.60 per share in 2025, up from the previous estimate of $6.55, and $8.50 per share in 2026, increased from $7.30. It's worth noting that all five business segments achieved record revenue, and Garmin's wearables gained market share, becoming the number two brand in Europe and number three globally. However, the growth estimate for the Auto OEM segment was lowered to 40% due to a softening outlook among major automakers.

InvestingPro Insights

Garmin's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $39.61 billion, underscoring its significant presence in the tech industry. Garmin's revenue growth of 17.91% over the last twelve months, coupled with a robust quarterly revenue growth of 24.15% in Q3 2024, demonstrates the company's ability to expand its market share and capitalize on increasing demand for its products.

InvestingPro Tips highlight Garmin's financial strength and shareholder-friendly policies. The company holds more cash than debt on its balance sheet, indicating a strong financial position. Additionally, Garmin has maintained dividend payments for 22 consecutive years and has raised its dividend for 7 consecutive years, showcasing its commitment to returning value to shareholders. This is further supported by a current dividend yield of 1.47%.

The stock's performance is also reflected in its impressive returns, with a 79.08% total return over the past year and a 61.09% return year-to-date. These figures align with the article's mention of the 78.06% increase in the 1-year change data.

For investors seeking more comprehensive analysis, InvestingPro offers 17 additional tips for Garmin, providing a deeper understanding of the company's potential and risks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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