Fitbit (FIT) Upgraded at Zacks Investment Research

Fitbit (NYSE:FIT) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued 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 affected its first-quarter results. In the past 12 months, the stock has underperformed the industry it belongs to.”

A number of other analysts have also recently issued reports on FIT. Stifel Nicolaus raised Fitbit from a “sell” rating to a “hold” rating and reduced their price objective for the company from $6.00 to $5.50 in a research report on Wednesday, January 31st. Citigroup reissued a “sell” rating and set a $4.50 price objective (down previously from $5.00) on shares of Fitbit in a research report on Tuesday, February 27th. Bank of America reissued an “underperform” rating on shares of Fitbit in a research report on Tuesday, February 27th. Morgan Stanley set a $5.00 price objective on Fitbit and gave the company a “hold” rating in a research report on Tuesday, February 27th. Finally, Wedbush restated a “neutral” rating and set a $6.00 target price (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 given a buy rating to the stock. Fitbit currently has an average rating of “Hold” and an average target price of $5.94.

FIT traded up $0.01 during trading on Wednesday, reaching $5.24. 43,471 shares of the stock traded hands, compared to its average volume of 4,410,335. The stock has a market cap of $1.10 billion, a price-to-earnings ratio of -8.03 and a beta of 1.89. Fitbit has a fifty-two week low of $4.51 and a fifty-two week high of $7.32.

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

In other news, Director Steven Joseph Murray sold 260,572 shares of Fitbit stock in a transaction dated Wednesday, May 16th. The stock was sold at an average price of $5.20, for a total value of $1,354,974.40. Following the transaction, the director now directly owns 11,442 shares in the company, valued at $59,498.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Andy Missan sold 5,000 shares of the business’s stock in a transaction dated Tuesday, May 1st. The shares were sold at an average price of $5.43, for a total value of $27,150.00. Following the transaction, the executive vice president now owns 145,495 shares in the company, valued at $790,037.85. The disclosure for this sale can be found here. Insiders sold 1,305,572 shares of company stock worth $6,654,724 over the last quarter. 19.84% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently modified their holdings of the stock. Investors Research Corp bought a new position in Fitbit during the fourth quarter valued at about $101,000. Alps Advisors Inc. bought a new position in Fitbit during the first quarter valued at about $121,000. Crescent Grove Advisors LLC bought a new position in Fitbit during the first quarter valued at about $128,000. Xact Kapitalforvaltning AB increased its stake in 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 valued at $128,000 after acquiring an additional 10,300 shares during the period. Finally, Greenwich Wealth Management LLC increased its stake in 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 valued at $134,000 after acquiring an additional 10,700 shares during the period. Hedge funds and other institutional investors own 61.69% of the company’s stock.

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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