Fitbit (FIT) Upgraded by Zacks Investment Research to “Hold”

Zacks Investment Research upgraded shares of Fitbit (NYSE:FIT) from a sell rating to a hold rating in a research report released on Wednesday.

According to Zacks, “Fitbit is benefiting from the introduction of new products related to health and wellness. Also, new features and services, increased brand awareness, expanded global distribution and presence in the corporate wellness market will continue to be the growth drivers in our view. Further, management remains confident on Versa smartwatch product. Moreover, Fitbit’s recovery initiatives that include cost structuring and focus on new smartwatches, are likely to boost demand for its products. However, the company is currently grappling with mounting competition from Apple and Xiaomi in the wearables space which affected its first-quarter results. In the past 12 months, the stock has underperformed the industry it belongs to.”

Several other equities analysts have also weighed in on FIT. Stifel Nicolaus upgraded shares of Fitbit from a sell rating to a hold rating and cut their price objective for the company from $6.00 to $5.50 in a report on Wednesday, January 31st. Citigroup restated a sell rating and issued a $4.50 price objective (down from $5.00) on shares of Fitbit in a report on Tuesday, February 27th. Bank of America restated an underperform rating on shares of Fitbit in a report on Tuesday, February 27th. Morgan Stanley set a $5.00 price objective on shares of Fitbit and gave the company a hold rating in a report on Tuesday, February 27th. Finally, Wedbush restated a neutral rating and issued a $6.00 price objective (down from $6.50) on shares of Fitbit in a report on Tuesday, February 27th. Four analysts have rated the stock with a sell rating, twelve have issued a hold rating and five have assigned a buy rating to the company. The company currently has an average rating of Hold and an average price target of $5.94.

Shares of NYSE FIT opened at $5.22 on Wednesday. Fitbit has a fifty-two week low of $4.51 and a fifty-two week high of $7.32. The company has a market capitalization of $1.10 billion, a P/E ratio of -8.03 and a beta of 1.89.

Fitbit (NYSE:FIT) last announced its quarterly earnings data on Monday, February 26th. The scientific and technical instruments company reported ($0.12) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.06) by ($0.06). Fitbit had a negative net margin of 19.05% and a negative return on equity of 19.17%. The business had revenue of $570.76 million during the quarter, compared to analyst estimates of $587.03 million. equities analysts predict that Fitbit will post -0.65 EPS for the current fiscal year.

In other Fitbit news, Director Steven Joseph Murray sold 260,572 shares of the stock in a transaction on Wednesday, May 16th. The shares were sold at an average price of $5.20, for a total value of $1,354,974.40. Following the sale, the director now directly owns 11,442 shares in the company, valued at $59,498.40. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Jon Callaghan sold 15,000 shares of the stock in a transaction on Monday, April 2nd. The stock was sold at an average price of $4.62, for a total transaction of $69,300.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,305,572 shares of company stock worth $6,654,724. Company insiders own 19.84% of the company’s stock.

Large investors have recently modified their holdings of the stock. Investors Research Corp acquired a new stake in shares of Fitbit during the fourth quarter worth $101,000. Alps Advisors Inc. acquired a new stake in shares of Fitbit during the first quarter worth $121,000. Crescent Grove Advisors LLC acquired a new stake in shares of Fitbit during the first quarter worth $128,000. Xact Kapitalforvaltning AB raised its holdings in shares of Fitbit by 69.7% during the first quarter. Xact Kapitalforvaltning AB now owns 25,078 shares of the scientific and technical instruments company’s stock worth $128,000 after acquiring an additional 10,300 shares during the period. Finally, Greenwich Wealth Management LLC raised its holdings in shares of Fitbit by 84.1% during the fourth quarter. Greenwich Wealth Management LLC now owns 23,425 shares of the scientific and technical instruments company’s stock worth $134,000 after acquiring an additional 10,700 shares during the period. Institutional investors and hedge funds own 61.69% of the company’s stock.

About Fitbit

Fitbit, Inc, a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic smartwatches; Fitbit Aria 2 Wi-Fi smart scales; and a range of accessories, such as bands and frames for its devices, as well as Fitbit Flyer, a wireless headphone designed for fitness.

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