Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
In a recent transaction, Matthew Munn, the Executive Vice President and Managing Director for Auto OEM at Garmin Ltd . (NASDAQ:NYSE:GRMN), sold 4,637 registered shares of the company. The navigation and wearable technology giant, currently valued at $44 billion, has demonstrated impressive performance with a 66% return over the past year. According to InvestingPro analysis, the company maintains excellent financial health with strong gross margins of 59%. The shares were sold at an average price of $225.3085 per share, amounting to a total transaction value of approximately $1,044,755. Following this sale, Munn holds 11,450 shares directly, which includes 11,270 unvested shares acquired through previously granted restricted stock unit awards. Based on InvestingPro’s Fair Value analysis, Garmin currently appears to be trading above its intrinsic value, with a P/E ratio of 31x. For deeper insights into insider transactions and comprehensive analysis, including 15+ additional ProTips, explore Garmin’s Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Garmin Ltd. reported a record-breaking fourth quarter and full-year 2024 performance, with a 23% year-over-year increase in Q4 revenue, reaching $1.82 billion. This surge was largely driven by strong demand in smart wearables and adventure watches, alongside a notable 31% rise in both fitness and outdoor sales. The company’s earnings per share (EPS) for Q4 2024 was $2.41, surpassing analysts’ expectations of $1.91, indicating a significant 26.2% surprise. For the full year, Garmin’s revenue climbed 20% to $6.30 billion, with all business segments achieving record annual revenues.
Garmin’s gross margin expanded by 100 basis points to 59% for both Q4 and the full year, attributed to its integrated manufacturing capabilities. The company also announced a proposed 20% increase in its annual dividend to $3.60 per share, reflecting confidence in its financial health. Analyst firm Tigress Financial Partners raised Garmin’s stock target to $285, maintaining a Strong Buy rating, emphasizing the company’s continuous innovation and new product development as key growth drivers. Garmin also provided an optimistic outlook for 2025, projecting an 8% revenue growth target.
Furthermore, Garmin’s auto OEM segment experienced a substantial 30% year-over-year growth, while the aviation and marine segments saw increases of 9% and 5%, respectively. The company continues to focus on enhancing shareholder returns through dividend increases and share repurchases. Despite challenges such as a softening auto OEM market in China and potential tariff impacts, Garmin remains committed to ongoing investments in new product development, which are expected to lead to higher returns on capital and increased shareholder value.
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