Is This an Opportunity to Buy Fitbit Inc (FIT) As Shares Fall Under IPO Price?


Shares of Fitbit Inc (NYSE:FIT) have fallen below their 2015 IPO price as the stock continues to fall at a rapid rate. After the unleashing of their Blaze smartwatch, the company seems have have lost shareholder confidence. However, with the stock severely beaten down, is now a good time to jump on board?

That’s a difficult question to answer, but the success of their previous fitness tracking devices certainly have helped the company make a name for themselves. Perhaps delving into the smartwatch arena isn’t seen as a smart move by some investors, as they will certainly sell a good amount of watches on brand name alone. Surely they won’t come close to outselling the Apple’s of the world, but fitness fanatics may elect to choose a Blaze watch over an Apple watch.

Fitbit Inc (NYSE:FIT) certainly isn’t going anywhere anytime soon. They have the resources needed to rebound from a potential product failure if the Blaze does end up being a dud. With the stock down to around $19, after having a 52-week high of $51.90, there is definitely a lot of ground that this company can make up.

The stock is down 11.66% or $2.51 following the news, hitting $19.01 per share. About 9.80M shares traded hands or 44.54% up from the average. FIT has risen 6.00% since December 12, 2015 and is uptrending. It has outperformed the S&P500 by 11.86%.

From a total of 12 analysts covering Fitbit (NYSE:FIT) stock, 8 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $79 while the lowest target price is $16. The mean of all analyst targets is $44.71 which is 135.19% above today’s ($19.01) stock price. Fitbit was the topic of 18 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on January 6 with a “Outperform” rating. Cleveland initiated shares with a”Neutral” rating and a $38 target share price in their report from a September 15. Ladenburg Thalmann initiated FIT stock in a recent report from December 9 with a “Neutral” rating. Pacific Crest initiated the rating on September 15. Pacific Crest has a “Overweight” rating and a $47 price target on shares. Finally, Bank of America upgraded the stock to a “Buy” rating in a report they issued on a November 17.

Fitbit, Inc. is a provider of health and fitness products. The company has a market cap of $4.44 billion. The Company’s Fitbit 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 fitness plans and interactive workouts. It has 53.8 P/E ratio. It offers a number of fitness products, including Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Charge HR, Fitbit Surge and Aria.