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Garmin Is Trading at a Premium to Analysts’ Estimates

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Stock returns

Although Garmin (GRMN) shares have increased investors’ wealth, the stock has remained volatile. Garmin stock returned 32% in 2016, 20% in 2017, and 3.5% in 2018. Since the beginning of 2019, the stock has gained 37%. The stock has risen more than 100% in the last three years. However, the stock has gained 55% in the last five years.

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Does Garmin stock have upside potential?

Among the 15 analysts covering Garmin stock, two recommended a “buy,” ten recommended a “hold,” and three recommended a “sell.” Analysts have a 12-month average target price of $76 on the stock, which indicates a downside of 12% from its current price of $86.53.

What do the technical indicators say?

On April 18, Garmin closed the trading day at $86.53. Based on that price, the stock was trading as follows:

  • 16% above its 100-day moving average of $74.39
  • 4% above its 50-day moving average of $83.08
  • 1% above its 20-day moving average of $87.25

MACD and RSI

Garmin’s 14-day MACD (moving average convergence divergence) is -1.33. A stock’s MACD shows the difference between its short-term and long-term moving averages. Garmin’s negative MACD score indicates a downward trading trend.

Garmin has a 14-day RSI (relative strength index) score of 53, which shows that its stock is trading marginally closer to the oversold territory. An RSI score above 70 indicates that a stock is overbought, while an RSI score below 30 indicates that a stock is oversold.

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