Fitbit (FIT) Shares Gap Up on Earnings Beat

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Shares of Fitbit Inc (NYSE:FIT) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $4.93, but opened at $4.73. Fitbit shares last traded at $5.85, with a volume of 31200475 shares.

The scientific and technical instruments company reported $0.04 EPS for the quarter, beating the consensus estimate of ($0.01) by $0.05. The firm had revenue of $393.60 million during the quarter, compared to analysts’ expectations of $381.25 million. Fitbit had a negative return on equity of 25.74% and a negative net margin of 23.70%. The company’s revenue for the quarter was up .3% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.01) EPS.

Several equities analysts have commented on FIT shares. ValuEngine raised Fitbit from a “hold” rating to a “buy” rating in a report on Monday, August 20th. Robert W. Baird reaffirmed a “hold” rating and issued a $6.00 price target on shares of Fitbit in a report on Thursday, August 2nd. Wedbush upped their price target on Fitbit from $6.00 to $7.00 and gave the company a “hold” rating in a report on Thursday, August 2nd. Stifel Nicolaus upped their price target on Fitbit from $5.50 to $6.00 and gave the company a “hold” rating in a report on Thursday, August 2nd. Finally, William Blair reaffirmed a “market perform” rating on shares of Fitbit in a report on Friday, September 21st. Four research analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $5.83.

In other news, Director Steven Joseph Murray sold 1,000,000 shares of the stock in a transaction that occurred on Monday, August 27th. The stock was sold at an average price of $6.22, for a total value of $6,220,000.00. Following the completion of the transaction, the director now directly owns 42,332 shares of the company’s stock, valued at approximately $263,305.04. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Andy Missan sold 7,500 shares of the stock in a transaction that occurred on Wednesday, October 10th. The stock was sold at an average price of $4.76, for a total value of $35,700.00. Following the completion of the transaction, the executive vice president now directly owns 176,739 shares of the company’s stock, valued at $841,277.64. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,025,000 shares of company stock valued at $6,354,550. 19.84% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Point72 Hong Kong Ltd acquired a new stake in Fitbit during the 2nd quarter valued at $127,000. Xact Kapitalforvaltning AB increased its holdings in Fitbit by 69.7% during the 1st quarter. Xact Kapitalforvaltning AB now owns 25,078 shares of the scientific and technical instruments company’s stock valued at $128,000 after purchasing an additional 10,300 shares in the last quarter. GWM Advisors LLC acquired a new stake in Fitbit during the 3rd quarter valued at $144,000. CIBC World Markets Inc. acquired a new stake in Fitbit during the 1st quarter valued at $171,000. Finally, Fox Run Management L.L.C. acquired a new stake in Fitbit during the 2nd quarter valued at $184,000. 62.15% of the stock is owned by institutional investors and hedge funds.

The firm has a market cap of $946.28 million, a price-to-earnings ratio of -9.00 and a beta of 1.78.

About Fitbit (NYSE:FIT)

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