Garmin Shares Surpass Target Price: Analyst Insights and Ratings
Recently, shares of Garmin Ltd (Symbol: GRMN) have exceeded the average analyst 12-month target price of $199.80, trading at $200.44 per share. When a stock hits an analyst’s target, they typically have two options: downgrade on valuation or raise the target price. Additionally, analysts may adjust their targets based on the company’s underlying business developments that influence stock price movements. If the company’s outlook improves, then a price target increase might be warranted.
Within the Zacks coverage universe, there are five different analyst targets affecting the average for Garmin Ltd. These targets range widely; while one analyst projects a low of $152.00, another anticipates a high of $285.00. The standard deviation among these targets is $52.827, indicating significant variation in analyst opinions.
The rationale for examining the average price target is the “wisdom of crowds” principle, which aggregates insights from multiple analysts rather than relying on a single expert’s view. As Garmin shares have now crossed the average target price of $199.80 per share, this presents an opportunity for investors to reevaluate their positions. They must decide whether $199.80 serves as a stepping stone to an even higher target or if the stock has become overvalued, suggesting it may be prudent to consider selling some holdings. Below is a table summarizing the current ratings from analysts monitoring Garmin Ltd:
| Recent GRMN Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 1 | 1 | 1 | 1 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 2 | 2 | 2 | 2 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 2 | 2 | 2 | 2 |
| Average rating: | 3.38 | 3.38 | 3.38 | 3.38 |
The average rating in the table above ranges from 1 to 5, with 1 representing a Strong Buy and 5 a Strong Sell. This data has been sourced from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
