Fitbit (FIT) Upgraded by Zacks Investment Research to “Buy”

Fitbit (NYSE:FIT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday, Zacks.com reports. The firm presently has a $5.75 price objective on the scientific and technical instruments company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 15.23% from the company’s previous close.

According to Zacks, “Fitbit reported strong first-quarter revenues on the back of strength in smartwatches and trackers. Also, new features and services, increased brand awareness, expanded global distribution and presence in the corporate wellness market continued to be the growth drivers in our view. Additionally, Fitbit’s recovery initiatives that include cost structuring and focus on new smartwatches will likely boost demand for its products. However, Fitbit is currently grappling with mounting competition from Apple and Xiaomi in the wearables space. Notably, the stock has underperformed the industry it belongs to over a year.”

A number of other research firms also recently commented on FIT. DA Davidson raised shares of Fitbit from a “neutral” rating to a “buy” rating and upped their price objective for the company from $5.50 to $7.00 in a research note on Thursday, February 28th. Wedbush downgraded shares of Fitbit from an “outperform” rating to a “neutral” rating and set a $6.50 price objective for the company. in a research note on Friday, February 22nd. ValuEngine downgraded shares of Fitbit from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, March 5th. William Blair reaffirmed a “market perform” rating on shares of Fitbit in a research note on Monday, March 11th. Finally, Roth Capital set a $8.00 price objective on shares of Fitbit and gave the company a “buy” rating in a research note on Friday, March 8th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the company. Fitbit has an average rating of “Hold” and an average price target of $6.08.

Shares of FIT stock opened at $4.99 on Wednesday. Fitbit has a twelve month low of $4.23 and a twelve month high of $7.79. The stock has a market capitalization of $1.12 billion, a P/E ratio of -8.32 and a beta of 1.62.

Fitbit (NYSE:FIT) last announced its earnings results on Wednesday, May 1st. The scientific and technical instruments company reported ($0.15) earnings per share for the quarter, beating the consensus estimate of ($0.22) by $0.07. Fitbit had a negative net margin of 12.01% and a negative return on equity of 18.58%. The firm had revenue of $272.00 million during the quarter, compared to the consensus estimate of $259.71 million. During the same quarter in the previous year, the company posted ($0.17) EPS. The firm’s revenue for the quarter was up 9.7% on a year-over-year basis. Equities analysts expect that Fitbit will post -0.43 earnings per share for the current fiscal year.

In related news, EVP Andy Missan sold 7,500 shares of the stock in a transaction that occurred on Monday, March 11th. The shares were sold at an average price of $5.84, for a total transaction of $43,800.00. Following the completion of the sale, the executive vice president now owns 91,640 shares of the company’s stock, valued at approximately $535,177.60. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last ninety days, insiders have sold 30,000 shares of company stock valued at $186,975. Corporate insiders own 18.60% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Virtu Financial LLC acquired a new stake in Fitbit during the 4th quarter worth approximately $121,000. Vanguard Group Inc. increased its position in Fitbit by 12.6% during the 3rd quarter. Vanguard Group Inc. now owns 19,805,756 shares of the scientific and technical instruments company’s stock worth $105,961,000 after purchasing an additional 2,211,848 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its position in Fitbit by 46.5% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 18,443 shares of the scientific and technical instruments company’s stock worth $92,000 after purchasing an additional 5,854 shares in the last quarter. Squarepoint Ops LLC increased its position in Fitbit by 1,972.9% during the 4th quarter. Squarepoint Ops LLC now owns 824,186 shares of the scientific and technical instruments company’s stock worth $4,096,000 after purchasing an additional 784,426 shares in the last quarter. Finally, Man Group plc acquired a new stake in Fitbit during the 3rd quarter worth approximately $193,000. 61.60% of the stock is owned by hedge funds and other institutional investors.

Fitbit Company Profile

Fitbit, Inc, a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Charge 3, Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Ace, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic and Fitbit Versa 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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