Zacks Investment Research upgraded shares of Fitbit (NYSE:FIT) from a sell rating to a hold rating in a research report sent to investors 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 also affected its first-quarter results. In the past 12 months, the stock has underperformed the industry it belongs to.”
A number of other research analysts have also recently commented on the company. William Blair assumed coverage on Fitbit in a research note on Wednesday. They issued a market perform rating on the stock. ValuEngine raised Fitbit from a buy rating to a strong-buy rating in a research note on Tuesday, June 12th. Wedbush set a $6.00 target price on Fitbit and gave the company a hold rating in a research note on Saturday, June 9th. Morgan Stanley set a $4.00 target price on Fitbit and gave the company a sell rating in a research note on Thursday, June 7th. Finally, Cascend Securities assumed coverage on Fitbit in a research note on Thursday, May 17th. They issued a hold rating on the stock. Four analysts have rated the stock with a sell rating, twelve have given a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. The stock currently has an average rating of Hold and a consensus target price of $5.94.
Fitbit opened at $7.01 on Wednesday, according to MarketBeat. Fitbit has a 52 week low of $4.51 and a 52 week high of $7.79.
Fitbit (NYSE:FIT) last released its earnings results on Wednesday, May 2nd. The scientific and technical instruments company reported ($0.17) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.20) by $0.03. The business had revenue of $248.00 million for the quarter, compared to analysts’ expectations of $247.35 million. Fitbit had a negative return on equity of 19.17% and a negative net margin of 19.05%. The firm’s revenue was down 17.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.15) earnings per share. sell-side analysts anticipate that Fitbit will post -0.64 EPS for the current year.
In other news, Director Steven Joseph Murray sold 500,000 shares of the firm’s stock in a transaction dated Monday, May 7th. The stock was sold at an average price of $4.97, for a total transaction of $2,485,000.00. Following the transaction, the director now directly owns 11,442 shares of the company’s stock, valued at $56,866.74. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jon Callaghan sold 15,000 shares of the firm’s stock in a transaction dated Monday, April 2nd. The shares were sold at an average price of $4.62, for a total value of $69,300.00. The disclosure for this sale can be found here. Insiders have sold 1,290,572 shares of company stock worth $6,587,024 over the last ninety days. Insiders own 19.84% of the company’s stock.
Several large investors have recently made changes to their positions in FIT. Schwab Charles Investment Management Inc. grew its stake in shares of Fitbit by 6.6% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 822,342 shares of the scientific and technical instruments company’s stock valued at $4,696,000 after buying an additional 50,718 shares during the last quarter. Teacher Retirement System of Texas grew its stake in shares of Fitbit by 339.4% in the fourth quarter. Teacher Retirement System of Texas now owns 56,281 shares of the scientific and technical instruments company’s stock worth $321,000 after purchasing an additional 43,472 shares during the last quarter. Swiss National Bank grew its stake in shares of Fitbit by 8.0% in the fourth quarter. Swiss National Bank now owns 284,300 shares of the scientific and technical instruments company’s stock worth $1,623,000 after purchasing an additional 21,000 shares during the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of Fitbit by 10.0% in the fourth quarter. The Manufacturers Life Insurance Company now owns 150,340 shares of the scientific and technical instruments company’s stock worth $858,000 after purchasing an additional 13,616 shares during the last quarter. Finally, Global X Management Co. LLC grew its stake in shares of Fitbit by 55.6% in the fourth quarter. Global X Management Co. LLC now owns 135,921 shares of the scientific and technical instruments company’s stock worth $776,000 after purchasing an additional 48,564 shares during the last quarter. 61.56% of the stock is currently owned by hedge funds and other institutional investors.
Fitbit Company Profile
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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