Fitbit, Inc. (FIT) Cut to Hold at Zacks Investment Research
Zacks Investment Research lowered shares of Fitbit, Inc. (NYSE:FIT) from a buy rating to a hold rating in a research note issued to investors on Monday morning.
According to Zacks, “Fitbit Inc. is a manufacturer of wearable fitness tracking devices. Year to date, 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. Moreover, 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.”
A number of other research firms also recently weighed in on FIT. BidaskClub raised Fitbit from a strong sell rating to a sell rating in a research note on Wednesday, July 19th. Stifel Nicolaus reaffirmed a hold rating and set a $6.00 price target (down from $7.00) on shares of Fitbit in a research note on Friday, June 23rd. Vetr raised Fitbit from a sell rating to a hold rating and set a $6.47 price target for the company in a research note on Tuesday, September 19th. ValuEngine raised Fitbit from a strong sell rating to a sell rating in a research note on Tuesday, August 1st. Finally, Deutsche Bank AG cut their price target on Fitbit from $6.50 to $5.50 and set a hold rating for the company in a research note on Thursday, August 3rd. Seven equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and seven have given a buy rating to the company’s stock. Fitbit currently has a consensus rating of Hold and an average price target of $7.45.
Shares of Fitbit (NYSE:FIT) opened at 6.98 on Monday. The stock’s 50 day moving average price is $6.49 and its 200-day moving average price is $6.49. Fitbit has a one year low of $5.62 and a one year high of $17.18. The stock’s market cap is $1.63 billion.
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 Zacks’ consensus estimate of ($0.15) by $0.07. Fitbit had a negative return on equity of 20.67% and a negative net margin of 13.79%. The company had revenue of $353.30 million during the quarter, compared to the consensus estimate of $341.24 million. During the same period last year, the business earned $0.12 EPS. The business’s quarterly revenue was down 39.8% on a year-over-year basis. On average, equities analysts predict that Fitbit will post ($0.31) earnings per share for the current fiscal year.
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In other news, EVP Andy Missan sold 5,000 shares of Fitbit stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $5.91, for a total transaction of $29,550.00. Following the sale, the executive vice president now owns 71,419 shares of the company’s stock, valued at approximately $422,086.29. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jon Callaghan sold 15,000 shares of Fitbit stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $5.90, for a total value of $88,500.00. The disclosure for this sale can be found here. Insiders sold a total of 555,000 shares of company stock worth $3,167,450 in the last ninety days. Insiders own 29.10% of the company’s stock.
Several large investors have recently made changes to their positions in the company. DnB Asset Management AS grew its holdings in shares of Fitbit by 57.8% during the 2nd quarter. DnB Asset Management AS now owns 16,352,508 shares of the scientific and technical instruments company’s stock worth $86,832,000 after purchasing an additional 5,989,005 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Fitbit by 13.9% during the 2nd quarter. Vanguard Group Inc. now owns 12,808,192 shares of the scientific and technical instruments company’s stock worth $68,012,000 after purchasing an additional 1,567,672 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of Fitbit by 193.6% during the 2nd quarter. Renaissance Technologies LLC now owns 4,741,700 shares of the scientific and technical instruments company’s stock worth $25,178,000 after purchasing an additional 3,126,706 shares in the last quarter. State Street Corp grew its holdings in shares of Fitbit by 68.0% during the 2nd quarter. State Street Corp now owns 3,330,776 shares of the scientific and technical instruments company’s stock worth $17,686,000 after purchasing an additional 1,348,058 shares in the last quarter. Finally, Quinn Opportunity Partners LLC grew its holdings in shares of Fitbit by 3.0% during the 2nd quarter. Quinn Opportunity Partners LLC now owns 2,573,690 shares of the scientific and technical instruments company’s stock worth $13,666,000 after purchasing an additional 75,100 shares in the last quarter. 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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