Garmin Ltd. (GRMN): Institutional Investors Are Buying, But Should You?

Garmin Ltd. (NASDAQ:GRMN), one of the world’s largest manufacturers of global positioning devices for cars, boats, planes, outdoor and fitness, saw an 11.8% sequential increase in institutional ownership last quarter. The company pays a dividend yield of 5.4% on a payout ratio of 75% of its current-year EPS estimate. This yield has been inflated by the near-30% drop in Garmin’s stock price over the past 12 months.

Garmin Ltd. (NASDAQ:GRMN) has no long-term debt and holds almost 60% of total assets in cash and marketable securities. However, it has been underperforming in recent years, due to fierce competition in a maturing market characterized by falling device prices. Detrimental to the company’s prospects has been the proliferation of navigation applications for mobile phones, and the marine and automotive segments have been particularly weak.

Read more at http://www.insidermonkey.com/blog/general-dynamics-corporation-gd-garmin-ltd-grmn-institutional-investors-are-buying-but-should-you-102838/#qXK6RwQeyWDu4qWw.99