Fitbit Inc. (FIT) Lowered to “Sell” at Zacks Investment Research
According to Zacks, “Fitbit Inc. is a manufacturer of wearable fitness tracking devices. The company reported better-than-expected second quarter 2016 results with revenues and earnings surpassing our estimates. Going forward, new products, features and services, increased brand awareness, expanded global distribution and presence in the corporate wellness market will continue to be the growth drivers. However, growing competition and increased popularity of smart watches will remain the headwinds.”
A number of other research analysts also recently weighed in on the stock. Pacific Crest downgraded shares of Fitbit from a sector weight rating to an underweight rating and raised their price target for the company from $15.88 to $16.70 in a report on Thursday, September 29th. Mizuho set a $20.00 price target on shares of Fitbit and gave the company a buy rating in a report on Thursday, September 15th. Vetr upgraded shares of Fitbit from a buy rating to a strong-buy rating and set a $17.63 price target on the stock in a report on Tuesday, August 9th. Longbow Research upgraded shares of Fitbit to a buy rating and set a $20.00 price target on the stock in a report on Monday, September 19th. Finally, Wells Fargo & Co. initiated coverage on shares of Fitbit in a report on Tuesday, July 12th. They set a market perform rating and a $13.58 price target on the stock. Two equities research analysts have rated the stock with a sell rating, eleven have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of Hold and an average target price of $22.11.
Shares of Fitbit (NYSE:FIT) opened at 14.72 on Tuesday. Fitbit has a 12 month low of $11.65 and a 12 month high of $41.97. The stock has a market capitalization of $3.27 billion, a PE ratio of 31.05 and a beta of 3.29. The company’s 50-day moving average is $15.29 and its 200-day moving average is $14.68.
Fitbit (NYSE:FIT) last released its quarterly earnings results on Tuesday, August 2nd. The company reported $0.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.01. The business had revenue of $586.50 million for the quarter, compared to the consensus estimate of $578.48 million. Fitbit had a net margin of 5.76% and a return on equity of 14.55%. Fitbit’s revenue for the quarter was up 46.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.21 EPS. Equities research analysts expect that Fitbit will post $1.18 earnings per share for the current fiscal year.
In other Fitbit news, Director Jon Callaghan sold 15,000 shares of the business’s stock in a transaction dated Thursday, September 1st. The shares were sold at an average price of $14.91, for a total value of $223,650.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Steven Joseph Murray sold 848,088 shares of the business’s stock in a transaction dated Wednesday, August 24th. The stock was sold at an average price of $15.14, for a total transaction of $12,840,052.32. The disclosure for this sale can be found here. 37.29% of the stock is currently owned by company insiders.
Several institutional investors have recently made changes to their positions in FIT. Metropolitan Life Insurance Co. NY increased its position in shares of Fitbit by 233.9% in the second quarter. Metropolitan Life Insurance Co. NY now owns 8,420 shares of the company’s stock worth $103,000 after buying an additional 5,898 shares in the last quarter. Commonwealth Equity Services Inc bought a new position in shares of Fitbit during the second quarter worth $129,000. Legal & General Group Plc increased its position in shares of Fitbit by 71.1% in the second quarter. Legal & General Group Plc now owns 10,967 shares of the company’s stock worth $134,000 after buying an additional 4,558 shares in the last quarter. Greenwich Wealth Management LLC bought a new position in shares of Fitbit during the second quarter worth $135,000. Finally, Wedbush Securities Inc. bought a new position in shares of Fitbit during the second quarter worth $140,000. 55.41% of the stock is owned by institutional investors.
Fitbit, Inc is a provider of health and fitness devices. The Company’s platform combines connected health and fitness devices with software and services, including an online dashboard and mobile applications, data analytics, motivational and social tools, personalized insights and virtual coaching through customized fitness plans and interactive workouts.
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