Will Wall Street React to Garmin Ltd.’s (GRMN) New Product Line, Including a 360-Traffic Warning Bike Helmet?


Shares of Garmin Ltd. (NASDAQ:GRMN) are rather mute this morning in pre-market trading, although the company just announced several new products to their lineup — one of which is a bicycle headset that warns a rider of traffic that is behind him/her.

Garmin Ltd.’s (NASDAQ:GRMN) Varia Vision headset not only can provide a cyclist with important data such as notifications, directions, etc., but it can also, with the help of Varia rearview radar, tell the individual when there is traffic behind them. Additionally the company is released their new Garmin Drive lineup intended for increasing a driver of a car’s situational awareness.

“The most exciting development of the new Garmin Drive line is that driver awareness features typically seen in luxury vehicles are now accessible as an aftermarket solution for all drivers,” said Dan Bartel, Garmin vice president of worldwide sales. “There are many distractions that drivers encounter while running errands, driving to work or taking road trips. These new driver alerts can remove some of these burdens and help drivers stay aware on the road.”

Garmin Drive will include data from social services like Foursquare, intuitive traffic updates, detailed landmarks, and even traffic lights. Garmin DriveSmart which is a slightly upgraded product will add customizable smart notifications for text messages, calls and more. Garmin DriveAssist will include a built-in dash-cam that will record and save video footage to a microSD card. Garmin DriveLuxe is the company’s top-of-the-line device and it is housed in a forged metal case. It adds HD Digital Traffic that updates every 30 seconds.

The stock decreased 1.00% or $0.37 during the last trading session, hitting $36.8. Approximately shares traded hands. GRMN shares have declined 19.07% since June 1, 2015 and are currently downtrending. It has underperformed the S&P500 by 16.94%.

From a total of 9 analysts covering Garmin Ltd. (NASDAQ:GRMN) stock, 1 rate it a “Buy”, 0 a “Sell”, and 8 a “Hold”. This means that 11% of the ratings are positive. The highest target price is $50 while the lowest target price is $30. The mean of all analyst targets is $39 which is 5.98% above today’s ($36.8) stock price. Garmin Ltd. was the topic of 12 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. Citigroup upgraded shares on October 29 to a “Neutral” rating. Raymond James upgraded shares to a”Mkt Perform” rating and a $43.0 target share price in their report from an August 25. Dougherty & Company downgraded GRMN stock in a recent report from October 15 to a “Neutral” rating. JP Morgan downgraded the rating on July 30. JP Morgan has a “Underweight” rating and a $40 price target on shares. Finally, Sterne Agee CRT initiated the stock with a “Neutral” rating in a report they issued on a September 29.

The institutional sentiment decreased to 0.75 in Q2 2015. It’s down 0.04, from 0.79 in 2015Q2. The ratio turned negative, as 62 funds sold all their Garmin Ltd. shares they owned while 107 reduced their positions. 35 funds bought stakes while 91 increased their total positions. Institutions now own 78.88 million shares which is 5.12% more than the previous share count of 75.04 million in 2015Q2.

P.A.W. Capital Corp holds 2.67% of its total portfolio in Garmin Ltd., equating to 65,000 shares. Valicenti Advisory Services Inc owns 84,770 shares representing 2.01% of their total US portfolio. Moreover, Gilman Hill Asset Management Llc has 1.58% of their total portfolio invested in the company, equating to 84,906 shares. The Minnesota-based Disciplined Growth Investors Inc Mn has a total of 1.55% of their portfolio invested in the stock. Diversified Investment Strategies Llc, a Louisiana-based fund reported 32,376 shares owned.

Since June 1, 2015, the stock had 0 buys, and 1 sale for a total of $2.73 million in net activity. Eller Donald sold 70,000 shares worth $2.73M. Pemble Clifton A sold 6,469 shares worth $303,137. Huang Pao-Chang sold 7,890 shares worth $362,230. Bartel Danny J sold 2,689 shares worth $125,227. The insider Straub Philip sold 4,243 shares worth $195,051.

Garmin Ltd. is a provider of navigation, communications and information devices, which are enabled by Global Positioning System (GPS) technology. The company has a market cap of $7.08 billion. The Firm operates through five business divisions: marine, outdoor, fitness, automotive/mobile, and aviation markets. It has 13.22 P/E ratio. It designs, develops, makes, markets and distributes a family of hand-held, wearable, portable and fixed-mount GPS-enabled products and other navigation, communications, sensor and information products.