Garmin's 86.6% Volume Surge Propels It to 476th Market Rank as Dividend and Analyst Split Spark Debate

Garmin (GRMN) rose 0.37% on August 19, with a trading volume of $0.20 billion, a 86.66% increase from the previous day, ranking 476th in market activity. The stock’s performance coincided with its upcoming $0.90 per share dividend, set for September 26, offering a 1.5% yield. Analysts noted the payout ratio of 36% and earnings growth of 17.5% projected for the next year, suggesting sustainable dividend coverage.

Insider activity highlighted reduced stakes by institutional investors. Round Hill Asset Management cut its position by 9.8%, while the State of New Jersey Common Pension Fund D sold 4.2% of its holdings. CEO Clifton Pemble and CFO Douglas Boessen also reduced personal ownership by 5.28% and 6.00%, respectively. These moves could signal strategic rebalancing but may raise questions about confidence in near-term growth.

Analyst sentiment remained mixed. JPMorgan raised its price target to $250, while Barclays and Morgan Stanley maintained "underweight" ratings with lower targets of $167 and $186, respectively. A consensus "Hold" rating reflects uncertainty about valuation, despite Garmin’s 20.4% year-over-year revenue growth and 23.21% net margin. The stock’s 28.65 P/E ratio and 2.59 PEG ratio suggest it trades at a premium relative to earnings growth.

Backtesting of a strategy buying the top 500 stocks by daily volume and holding for one day from 2022 to 2025 showed a 0.98% average daily return, with a total return of 31.52% over 365 days. This indicates short-term momentum potential but underscores risks tied to market timing and volatility.