• 
• See all for Dividend.com
• View Print Version

• Best Dividend Stocks
• High-Yield Dividend Stocks
• Ex-Dividend Calendar

• GRMN 50% Rate It

On Monday analysts at Goldman Sachs downgraded Garmin Ltd. ( GRMN ) amid weak sales in the personal navigation device market.

The analysts downgraded GRMN from "Neutral" to "Sell" and it dropped the price target from $39 to $34. That new price target is a -8.1% drop from Friday's closing price of $37.01.

"Our FY13 EPS estimate is 10% below consensus on weaker sales in personal navigation devices (PNDs) and Fitness as a result of increased smartphone cannibalization and competition," Goldman Sachs commented. "We expect PND trends to weaken as a result of stronger smartphone growth in 4Q and into 2013. In Fitness, we see increased competition pressuring market share and margins. Importantly, we view Garmin more as a relative underperformer, as its 4.9% dividend yield and $13.86 in cash per share (38% of the market cap) lend support to the stock."

GRMN stock was flat in premarket trading on Monday. Garmin shares have depreciated $2.80, or -7.03%, year to date, falling substantially since May.

The Bottom Line
Shares of Garmin Ltd. ( GRMN ) have a 4.86% dividend yield, based on Friday's closing stock price of $37.01. The stock has technical support in the $32-$35 price area. If the shares can firm up, we see overhead resistance around the $40-$42 price levels.

Garmin Ltd. ( GRMN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Related Stocks Articles

• 
  Parker Hannifin Reaches 52-Week High - Analyst Blog
  5/21/2013 06:27 PM
• 
  Yahoo to Open Office in Times Square - Analyst Blog
  5/21/2013 06:26 PM
• 
  Positive Data on Novartis' Afinitor - Analyst Blog
  5/21/2013 06:26 PM