Garmin’s recent financial performance has been the topic of discussion in investment circles, with American International Group Inc. making headlines for its recent decision to reduce holdings in the company by 5.5% during the last quarter. This shift comes after a series of earnings reports reflecting mixed results, including first quarter results announced on Wednesday, May 3rd.
Despite analysts’ expectations that Garmin would report $1.09 billion in revenues, the company generated $1.15 billion instead. While this initially appeared promising, it should be noted that year-over-year revenue was down 2.1%. Despite this dip in revenue, Garmin was still able to report a net margin of 19.94% and a return on equity of 15.98%, beating analysts’ consensus estimates.
Additionally, Garmin reported earnings per share of $1.02 for the first quarter, which exceeded analysts’ consensus estimates by 0.02 cents per share.
Given these mixed results, investors have been carefully analyzing Garmin’s financial health for potential investment opportunities or areas of caution moving forward.
It is important to note that while American International Group Inc.’s decision to reduce holdings may seem significant at first glance, their holdings only went down by 2,434 shares during the period – telling us little about how they view the long term prospects of investing in Garmin.
Investors will continue to keep an eye on how Garmin performs following the release of its latest earnings results and whether it can maintain profitability over time despite declining revenue streams and growing market competition from other tech-based companies operating within similar sectors.
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Institutional Investors and Hedge Funds Increase Stake in Garmin Ltd. Stock
Garmin Ltd. has seen a significant increase in the number of hedge funds and institutional investors modifying their holdings of the scientific and technical instruments company’s stock in recent months. Several high-profile firms, including First Trust Advisors LP, Renaissance Technologies LLC, Artisan Partners Limited Partnership, Vanguard Group Inc., and Boston Partners have all raised their stake in shares of Garmin by varying percentages during different quarters.
First Trust Advisors LP increased its stake by a staggering 213.1% during the third quarter, bringing its ownership to over 2.5 million shares worth $200.9 million. Similarly, Renaissance Technologies LLC increased its stake by 195.2% during the first quarter to own nearly one million shares worth over $117 million.
Artisan Partners Limited Partnership raised its stake by a relatively modest 7.7% during the third quarter but still owns over six million shares worth more than half a billion dollars as a result. Vanguard Group Inc. also saw a slight increase in its stake during the first quarter, owning over 17 million shares worth more than two billion dollars.
Finally, Boston Partners raised its stake by an impressive 20.4% during the third quarter to own over two million shares worth $170.5 billion.
Overall, hedge funds and other institutional investors now own approximately 63% of Garmin Ltd.’s total stock.
Garmin’s stock opened at $106.47 on Monday and currently has a market cap of $20.37 billion with a P/E ratio of 21.29 and a beta of 0.94. The company has experienced both highs and lows within the past year, ranging from $76.37 to $108.32 per share respectively with low volatility due to their beta value being under one.
As investors continue to show interest in Garmin, it remains to be seen how these modifications in holdings will affect the company’s future growth prospects and overall financial performance going forward.
