Fitbit (FIT) Upgraded to Hold at Zacks Investment Research

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 Monday morning.

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. Estimates have been stable lately ahead of the company’s Q2 earnings release. The company has positive record of earnings surprises in recent quarters. 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 research firms have also commented on FIT. Roth Capital set a $8.00 target price on Fitbit and gave the company a buy rating in a report on Tuesday, May 1st. Morgan Stanley lowered Fitbit from an equal weight rating to an underweight rating and decreased their price objective for the stock from $5.00 to $4.00 in a report on Monday, April 2nd. ValuEngine lowered Fitbit from a buy rating to a hold rating in a report on Tuesday, May 8th. Wedbush set a $6.00 price objective on Fitbit and gave the stock a hold rating in a report on Saturday, June 9th. Finally, William Blair assumed coverage on Fitbit in a report on Wednesday, June 20th. They issued a market perform rating for the company. Four equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and six have issued a buy rating to the company. Fitbit currently has an average rating of Hold and a consensus price target of $5.94.

Fitbit opened at $6.61 on Monday, MarketBeat Ratings reports. Fitbit has a 52 week low of $4.51 and a 52 week high of $7.79.

Fitbit (NYSE:FIT) last posted its earnings results on Wednesday, May 2nd. The scientific and technical instruments company reported ($0.17) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.20) by $0.03. The company had revenue of $248.00 million during the quarter, compared to analyst estimates of $247.35 million. Fitbit had a negative return on equity of 19.17% and a negative net margin of 19.05%. The business’s revenue was down 17.1% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.15) earnings per share. equities analysts predict that Fitbit will post -0.64 earnings per share for the current fiscal year.

In other Fitbit news, Director Steven Joseph Murray sold 500,000 shares of the company’s stock in a transaction that occurred on Friday, May 18th. The stock was sold at an average price of $5.20, for a total value of $2,600,000.00. Following the completion of the sale, the director now directly owns 11,442 shares in the company, valued at $59,498.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Andy Missan sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, June 1st. The stock was sold at an average price of $5.50, for a total value of $27,500.00. Following the completion of the sale, the executive vice president now owns 145,495 shares of the company’s stock, valued at $800,222.50. The disclosure for this sale can be found here. Insiders sold 1,270,572 shares of company stock valued at $6,494,624 over the last 90 days. 19.84% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FIT. Investors Research Corp acquired a new stake in shares of Fitbit during the 4th quarter valued at $101,000. Alps Advisors Inc. acquired a new stake in shares of Fitbit during the 1st quarter valued at $121,000. Crescent Grove Advisors LLC acquired a new stake in shares of Fitbit during the 1st quarter valued at $128,000. Xact Kapitalforvaltning AB lifted its position in shares of Fitbit by 69.7% during the 1st 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 last quarter. Finally, Stone Ridge Asset Management LLC acquired a new stake in shares of Fitbit during the 4th quarter valued at $139,000. Hedge funds and other institutional investors own 61.56% 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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