Positive growth of the stock for Garmin Ltd. (GRMN) began in the spring of last year. What provided its driver, and can it maintain these positive dynamics in the future?
Sales dropped in the second quarter of 2020 due to COVID-19, but its forced self-isolation program boosted sales. As a result of social activity restrictions, boating, hiking, and other outdoor activities have grown in popularity. Because of this, Garmin’s sales have increased, and so far, the trend continues.
As of the fourth quarter of 2020, Garmin Ltd. (GRMN) sales grew 40% and 48% year-on-year, respectively, in the Navionics (Electronics for Marine Transportation) and Avionics segments. Tourism destinations such as camping and water sports are increasingly popular, and navigation and transport automation play a critical role in their safety.
A GPS navigator specifically for mobile homes was added to the Garmin product line promptly. The innovation from Tread is intended for off-road users such as ATVs and snowmobiles.
Maps show recreational trails and a walkie-talkie that can help in communication when traveling with a group and an action camera. Further, it can be used as a navigation tool also. Besides, strong sales of boats and outboards in the US may give Garmin extra positive momentum.
More than 1.28 million shares of Garmin Ltd. (GRMN) traded Friday for $125.71. A negative performance of -1.37% has been posted by the shares recently. On the 19th of March, the shares gained over 0.21%. The number of common shares available to trade stands at 191.28M. Among that number, 149.86M shares have been issued to the public.