Fitbit, Inc. (FIT) On The Radar Of Prospective Investors

Fitbit, Inc. (NYSE:FIT) has been upgraded by DA Davidson, which now rates the stock as Buy versus Neutral prior rating, according to a note issued on February 28. Analysts at Wedbush, shed their positive views on February 22 by lowering it fromOutperform to Neutral. The stock won favor of Wedbush analysts who expressed their confidence in it using an upgrade from Neutral to Outperform on October 12. William Blair, released new analyst coverage on June 20, calling the stock is Mkt Perform.

FIT stock dropped -0.84% in recent trade and currently has a stock-market value of $1.5B. The shares finished at $5.87, after trading as low as $5.85 earlier in the session. It hit an intraday high Thursday at $5.97. Trading activity significantly weakened as the volume at ready counter decreased to 2,977,671 shares versus 7,130,160 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 5,294,602 shares. The stock is now 38.77% above against its bear-market low of $4.23 on October 29, 2018. It has retreated -32.71% since it’s 52-week high of $7.79 reached in June. Now the market price is up 8.91% on the year and up 18.11% YTD.

Wall Street’s most bullish Fitbit, Inc. (NYSE:FIT) analysts are predicting the share price to blow past $10 per share during the next 12 months. The current median share price forecast by them is $6.75, suggesting that the stock could increase 14.99% in that time frame. The average price target of $6.81 calls for a nearly 16.01% increase in the stock price.

Fitbit, Inc. (FIT)’s 50 day simple moving average (SMA 50) price is $6.12 and its 200-day simple moving average (SMA 200) price is $5.83. The company’s stock currently has a total float of 216.35M shares. Its weekly volatility is hovering around 2.94% and felt 4.11% volatility in price over a month. On the upside, the share price will test short term resistance at around $5.94. On a downside, the stock is likely to find some support, which begins at $5.82. The failure to get near-term support could push it to $5.78.

Also, it is trading at rather expensive levels at just over 2x price/book and 0.99x price/sales. Compared to others, Fitbit, Inc. is in a different league with regards to profitability, having net margins of -12.3%. To put some perspective around this, the industry’s average net margin is 14.27%. FIT’s ROE is -25.9%, which is also considerably worse than the industry’s ROE of 16.06%. It’s also very liquid in the near term, with a current ratio of 1.8. The stock has a debt/capital of 0.

FIT last reported earnings that exceeded expectations. The company raked in $0.14 per share, -99.84% change on the same period last year. That was better than consensus for $0.07. Revenue for the recent quarter stood at $571.2 million, down 0% on last year and above the $569.34 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $254.4 million to $268 million, which should be compared with $276.7 million generated last year. EPS is seen in a range of -$0.23 to -$0.19, against the -$0.15 reported a year ago.