Zacks Investment Research Downgrades Fitbit, Inc. (FIT) to Hold
Fitbit, Inc. (NYSE:FIT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Fitbit Inc. is a manufacturer of wearable fitness tracking devices. The company reported second-quarter 2017 adjusted loss of 18 cents per share, which was narrower than the Zacks Consensus Estimate. Over the last year, the stock has underperformed the industry it belongs to. Fitbit’s growth has been slowing down with smartwatches outshining the fitness wearable category, influx of new wearables, lack of upgrades among existing users and lackluster growth in the Asia Pacific region. Management has taken some recovery initiatives that include executive shakeup and cost structuring.”
Several other analysts also recently weighed in on FIT. Longbow Research restated a “hold” rating on shares of Fitbit in a research note on Saturday, May 27th. ValuEngine upgraded Fitbit from a “strong sell” rating to a “sell” rating in a research note on Friday, June 2nd. Dougherty & Co reiterated a “neutral” rating on shares of Fitbit in a research note on Saturday, June 3rd. Citigroup Inc. reiterated a “sell” rating and set a $5.00 target price on shares of Fitbit in a research note on Tuesday, June 6th. Finally, Stifel Nicolaus reiterated a “hold” rating and set a $6.00 target price (down from $7.00) on shares of Fitbit in a research note on Friday, June 23rd. Six analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and six have issued a buy rating to the company. The company currently has an average rating of “Hold” and a consensus target price of $7.99.
Fitbit (NYSE FIT) opened at 6.88 on Wednesday. The company’s market cap is $1.60 billion. Fitbit has a 12-month low of $5.62 and a 12-month high of $17.18. The stock has a 50 day moving average price of $6.51 and a 200-day moving average price of $6.34.
Fitbit (NYSE:FIT) last posted its quarterly earnings results on Wednesday, August 2nd. The scientific and technical instruments company reported ($0.08) earnings per share for the quarter, topping the consensus estimate of ($0.15) by $0.07. The company had revenue of $353.30 million for the quarter, compared to the consensus estimate of $341.24 million. Fitbit had a negative return on equity of 20.67% and a negative net margin of 13.79%. The firm’s quarterly revenue was down 39.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.12 EPS. On average, analysts predict that Fitbit will post ($0.31) EPS for the current fiscal year.
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In related news, Director Jon Callaghan sold 15,000 shares of the firm’s stock in a transaction on Tuesday, August 1st. The stock was sold at an average price of $5.09, for a total value of $76,350.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Andy Missan sold 5,000 shares of the firm’s stock in a transaction on Friday, September 1st. The stock was sold at an average price of $5.91, for a total value of $29,550.00. Following the completion of the transaction, the executive vice president now directly owns 71,419 shares in the company, valued at $422,086.29. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 555,000 shares of company stock worth $3,167,450. 29.10% of the stock is owned by insiders.
A number of institutional investors have recently made changes to their positions in FIT. Principal Financial Group Inc. bought a new position in Fitbit in the 2nd quarter worth $114,000. Amalgamated Bank raised its holdings in Fitbit by 20.1% in the 2nd quarter. Amalgamated Bank now owns 22,075 shares of the scientific and technical instruments company’s stock worth $117,000 after purchasing an additional 3,698 shares during the period. Kissinger Financial Services LLC bought a new position in Fitbit in the 2nd quarter worth $153,000. Capital Fund Management S.A. bought a new position in Fitbit in the 2nd quarter worth $157,000. Finally, Croft Leominster Inc. bought a new position in Fitbit in the 1st quarter worth $166,000. 56.04% of the stock is currently 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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