Essay Sample on Garmin Company: An In-Depth Analysis

Which Stock Market Exchange is the Company Listed On?

In this study, I will pick on the Garmin Company. The company is listed on NASDAQ, and typically uses the code GRMN. Notably, Garmin Company has previously pioneered in Global Positioning System (GPS) and has an incredible level of experience, and creditability.

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The Stock Activity of Garmin?

After studying the three year' worth of stock activity for Garmin, I estimated that the company had a stock price of about $66.34 per share in the financial year 2017-2018. The company had a $53.05, $60.34, and $81.85 share prices in the year 2017, 2018, and 2019 respectively (Macrotrends, 2016). The consistent fluctuations caused significant highs and lows in the marginal trends of the Garmin company. For instance, a high of $62.91 and a low of $47.52 in 2017. In 2018, there was a high of $70.54 and a low of $57.55, and eventually, a high of $98.38 and a low of $61.58 in 2019 (Macrotrends, 2016).

Has the Company Ever Initiated a Stock Split?

At some points in time, it is always efficient for companies to reconsider their decisions, which will boost their liquidity and sales of shares. Garmin (2018) outlined that to achieve that incidence, stock splitting is necessary, where shares are divided into ratios of 2, such as 1, 3 for the share 1. Ideally, it is also vital to note that the process of splitting does not impact the volume of shares, but only divides the already existing share into three or two different but equal parts. Studies indicate the Garmin engaged in stock splitting back in 2006, where it used the same ratio of 2, as illustrated above. It, therefore, meant that every shareholder who initially had a share got the opportunity to own two shares (Stock Split History, 2012).

How Many Shares of Stock Are Outstanding? Authorized? Issued?

Although there were no imperative data records to prove that Garmin Company had any outstanding, issued, or authorized shares of stock, especially after the release of their 2018 financial year report, I found some useful data that was applicable for the same year of 2018. In the studies, it was evident that the company had an average of 198, 074 authorized and issued shares by the end of the year 2018, and a sum of 189,463 shares as outstanding (Garmin, 2019).

Would You Invest in This Company Based on What You Have Evaluated?

Going by the financial history and findings derived from Garmin Company, I would effectively invest shares in it. The decision would not only be motivated by the fact that the records shown by Garmin are encouraging, but also because, the company has exponentially raised its fitness niche because a majority of the consumers are currently using the data tracking services to monitor their shares progressively. The ability of the company to allow its users to track their financial progress of the invested shares creates more confidence and trust. Besides, the highs and lows patters motivate me to invest because more return can be expected.

How Does the Stock Compare in Terms of Price and Activity?

I would use FitBit company to perform the comparison because the company's operations revolve within the production of tracking devices, and numerous wearables. Fitbit and Garmin came in third and fifth positions, respectively, in the second quarter rankings of 2018, for the world's largest wearable makers (Sun, 2018). Even though other companies produce wearables such as Xiaomi and Apple, FitBit still becomes a preferable choice because it specializes in its production on the manufacturing of track devices, which can be used to monitor daily health activities for athletes, and any other ordinary person. Garmin as a company participates in a similar product but is more advantaged in the sector, especially with the recent invention of the most extended battery life. Nevertheless, the profitability at Garmin Company is hiked by its diversification in producing aviation, and automotive. These make the pricing of their products cheaper, compared to their compatriots FitBit, who specializes in the production of wearables. Therefore, Garmin has offered its customers a range of options to invest in, and thus expanding the portfolios. Furthermore, the existence of more investment options reduced the extent of risks among shareholders.

References

Garmin, February 19, (2018). Garmin Annual 2018 Report. Retrieved from: https://www8.garmin.com/aboutGarmin/invRelations/reports/2018_Annual_Report.pdf

Macrotrends, R.G. (2016). Garmin - Stock Price History | GRMN Retrieved from: https://www.macrotrends.net/stocks/charts/GRMN/garmin/stock-price-history

Stock Split History. (2012). Garmin Stock Split History. Retrieved from: https://www.stocksplithistory.com/garmin/

Sun, L. (2018). Better Buy: Garmin Ltd. Vs. FitBit Inc. Retrieved from: https://www.fool.com/investing/2018/11/04/better-buy-garmin-ltd-vs-fitbit-inc.aspx