Fitbit Inc (FIT) Raised to Buy at Zacks Investment Research

Fitbit Inc (NYSE:FIT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday, May 8th. The firm presently has a $7.00 target price on the scientific and technical instruments company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 27.27% from the company’s current price.

According to Zacks, “Fitbit Inc. is a manufacturer of wearable fitness tracking devices. The company reported first-quarter 2017 adjusted loss of 25 cents per share, in line with the Zacks Consensus Estimate. Over the last one year, the stock has underperformed the Zacks characterised Electronic Measuring Instruments Industry. 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.”

FIT has been the subject of a number of other reports. Dougherty & Co reiterated a “neutral” rating on shares of Fitbit in a report on Monday, May 8th. Robert W. Baird reiterated a “neutral” rating and issued a $6.00 target price (down from $10.00) on shares of Fitbit in a report on Tuesday, January 31st. Citigroup Inc downgraded shares of Fitbit from a “neutral” rating to a “sell” rating and reduced their target price for the stock from $5.90 to $5.00 in a report on Tuesday, January 31st. Wedbush reiterated a “neutral” rating and issued a $6.50 target price (down from $8.50) on shares of Fitbit in a report on Tuesday, January 31st. Finally, Mizuho reduced their target price on shares of Fitbit from $9.00 to $6.50 and set a “neutral” rating for the company in a report on Monday, January 30th. Four research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $10.21.

Analyst Recommendations for Fitbit (NYSE:FIT)

Fitbit (NYSE:FIT) traded up 1.66% during mid-day trading on Monday, hitting $5.50. 7,156,365 shares of the stock traded hands. The stock’s market cap is $1.26 billion. The company’s 50 day moving average price is $5.77 and its 200-day moving average price is $6.83. Fitbit has a 1-year low of $5.31 and a 1-year high of $17.18.

Fitbit (NYSE:FIT) last released its quarterly earnings data on Wednesday, May 3rd. The scientific and technical instruments company reported ($0.15) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.25) by $0.10. Fitbit had a net margin of 4.67% and a return on equity of 11.94%. The company had revenue of $298.94 million during the quarter, compared to analyst estimates of $277.48 million. Analysts predict that Fitbit will post ($0.35) earnings per share for the current year.

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In other Fitbit news, EVP Timothy M. Roberts sold 369,385 shares of the firm’s stock in a transaction on Friday, February 24th. The stock was sold at an average price of $6.01, for a total value of $2,220,003.85. Following the completion of the sale, the executive vice president now directly owns 369,385 shares of the company’s stock, valued at approximately $2,220,003.85. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Andy Missan sold 50,000 shares of the firm’s stock in a transaction dated Tuesday, March 7th. The stock was sold at an average price of $5.91, for a total value of $295,500.00. Following the sale, the executive vice president now directly owns 105,000 shares of the company’s stock, valued at $620,550. The disclosure for this sale can be found here. Over the last three months, insiders sold 592,537 shares of company stock valued at $3,554,416. 37.29% of the stock is owned by corporate insiders.

Institutional investors have recently made changes to their positions in the stock. DnB Asset Management AS boosted its position in shares of Fitbit by 81.2% in the first quarter. DnB Asset Management AS now owns 10,363,503 shares of the scientific and technical instruments company’s stock valued at $61,352,000 after buying an additional 4,644,977 shares during the last quarter. State Street Corp raised its position in Fitbit by 14.0% in the fourth quarter. State Street Corp now owns 1,631,848 shares of the scientific and technical instruments company’s stock valued at $11,946,000 after buying an additional 199,927 shares during the period. Morgan Stanley raised its position in Fitbit by 76.4% in the third quarter. Morgan Stanley now owns 3,801,352 shares of the scientific and technical instruments company’s stock valued at $56,411,000 after buying an additional 1,646,344 shares during the period. Artemis Investment Management LLP purchased a new position in Fitbit during the fourth quarter valued at approximately $7,725,000. Finally, BlackRock Institutional Trust Company N.A. raised its position in Fitbit by 26.0% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 3,472,704 shares of the scientific and technical instruments company’s stock worth $51,535,000 after buying an additional 717,383 shares during the last quarter. Institutional investors and hedge funds own 65.31% of the company’s stock.

About Fitbit

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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