Fitbit (FIT) Shares Gap Up After Better-Than-Expected Earnings

Fitbit Inc (NYSE:FIT) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $4.93, but opened at $4.73. Fitbit shares last traded at $5.85, with a volume of 31200475 shares trading hands.

The scientific and technical instruments company reported $0.04 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.01) by $0.05. Fitbit had a negative net margin of 23.70% and a negative return on equity of 25.74%. The company had revenue of $393.60 million for the quarter, compared to the consensus estimate of $381.25 million. During the same period last year, the firm posted ($0.01) EPS. Fitbit’s revenue for the quarter was up .3% on a year-over-year basis.

Several brokerages have issued reports on FIT. Bank of America raised their price objective on shares of Fitbit from $4.80 to $5.00 and gave the stock a “sell” rating in a research report on Thursday, August 2nd. Morgan Stanley set a $4.00 target price on shares of Fitbit and gave the stock a “sell” rating in a research note on Thursday. Stifel Nicolaus raised their target price on shares of Fitbit from $5.50 to $6.00 and gave the stock a “hold” rating in a research note on Thursday, August 2nd. ValuEngine cut shares of Fitbit from a “buy” rating to a “hold” rating in a research note on Tuesday, October 16th. Finally, Robert W. Baird restated a “hold” rating and issued a $6.00 target price on shares of Fitbit in a research note on Thursday, August 2nd. Four equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $5.83.

In other news, Director Steven Joseph Murray sold 1,000,000 shares of the firm’s stock in a transaction on Monday, August 27th. The shares were sold at an average price of $6.22, for a total value of $6,220,000.00. Following the completion of the sale, the director now owns 42,332 shares in the company, valued at approximately $263,305.04. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Andy Missan sold 7,500 shares of the firm’s stock in a transaction on Wednesday, October 10th. The stock was sold at an average price of $4.76, for a total transaction of $35,700.00. Following the completion of the sale, the executive vice president now owns 176,739 shares of the company’s stock, valued at approximately $841,277.64. The disclosure for this sale can be found here. Insiders sold a total of 1,025,000 shares of company stock valued at $6,354,550 in the last 90 days. Company insiders own 19.84% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. lifted its stake in shares of Fitbit by 11.7% in the first quarter. Russell Investments Group Ltd. now owns 118,894 shares of the scientific and technical instruments company’s stock valued at $606,000 after purchasing an additional 12,500 shares during the period. DNB Asset Management AS lifted its stake in shares of Fitbit by 24.4% in the third quarter. DNB Asset Management AS now owns 21,302,221 shares of the scientific and technical instruments company’s stock valued at $113,967,000 after purchasing an additional 4,183,045 shares during the period. Trexquant Investment LP acquired a new stake in shares of Fitbit in the second quarter valued at about $1,384,000. Schwab Charles Investment Management Inc. lifted its stake in shares of Fitbit by 26.1% in the second quarter. Schwab Charles Investment Management Inc. now owns 1,160,629 shares of the scientific and technical instruments company’s stock valued at $7,579,000 after purchasing an additional 240,290 shares during the period. Finally, Swiss National Bank lifted its stake in shares of Fitbit by 11.2% in the second quarter. Swiss National Bank now owns 339,800 shares of the scientific and technical instruments company’s stock valued at $2,219,000 after purchasing an additional 34,300 shares during the period. Institutional investors own 62.15% of the company’s stock.

The company has a market cap of $946.28 million, a P/E ratio of -9.38 and a beta of 1.78.

About Fitbit (NYSE:FIT)

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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