Garmin Stock Finds Its Way Higher After Impressive Earnings

The firm lifted its full-year revenue forecast, too

Deputy Editor
Jul 31, 2019 at 10:06 AM
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The shares of GPS concern Garmin Ltd. (NASDAQ:GRMN) are skyrocketing today, after the firm unveiled second-quarter earnings and revenue that beat analysts' estimates. The company cited growing demand for its wearable and fitness devices, and lifted its 2019 revenue forecast on growing expectations for its aviation, marine, and auto units. GRMN stock is up 7.2% at $82.14, in response.

Today's surge has GRMN trading back atop its 80-day moving average -- a trendline that has provided pressure on the charts since early May. And while this ceiling has capped Garmin's last few rallies, the $76 region has emerged as a solid area of support for the equity since it gapped higher after earnings in February

While analysts have remained silent after earnings today, a round of upgrades could put even more wind at Garmin's back. Currently, all five in coverage have slapped the security with a tepid "hold" or "sell" rating, with not a single "buy" to be found. Likewise, the consensus 12-month price target of $78.40 represents a discount to current levels, suggesting price-target hikes could ensue.

In a similar vein, options traders have been upping the bearish ante too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GRMN sports a 10-day put/call volume ratio of 1.34. This means that bought puts have outnumbered calls during the past two weeks, and with this ratio sitting higher than 82% of all other readings from the past year, it's safe to say appetites for pessimistic positions have been larger than usual ahead of earnings. 

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