FitBit (FIT) Stock | Healthy Moves Into Earnings

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FitBit Inc.  (NYSE:  FIT)

 

FIT Looking Healthy Before Earnings

Shares of FIT hit a new high of $50.99 intraday today since going public at $20 per share just under 7 weeks ago.  FIT has been on a nice upwards trajectory since its initial public offering on June 18, 2015.  Many traders are pouring into the stock, ahead of the wearable fitness tracking device maker’s first quarterly earnings report as a public company on Wednesday.

 

FIT Up Over 150% Since IPO

FitBit Inc. priced 36,575,000 shares at an IPO price of $20 and the stock opened at $30.40 on the first day of trading on June 18, 2015 on the NYSE.  Shares closed that first day at $29.68.  Since then, shares are up over 150% over the $20 IPO price.

 

Today’s Action

FIT opened this morning at $49.18 after closing at $47.60 last Friday.  As of this writing, shares are up more than 2.6% at $49.10 on volume of more than 14.3 million vs. normal average daily volume of 12,992,100.    There are some traders who don’t believe the rise in FIT will continue.  19% of the 42.6 million shares in the float are sold short by the bears.  With an ATR (Average True Range) of $2.93, FIT continues to give traders many opportunities throughout the trading day.

 

Analysts’ Price Target

FIT has a mean price target of $46.45 for the 11 analysts covering the stock.  This represents an approximately 4.6% discount to where the stock is currently trading.  The high and low price targets are $57 and $28 respectively.  Stifel has the highest price target of $57 of all analysts covering the stock.  Analysts’ are predicting EPS of $0.08 on revenue of $319.45 million.  Since this is FIT’s 1st quarterly earnings report as a public company, this will set the tone for the rest of the year to come.

 

Technical Analysis

FIT chart 8-3-15

FIT is trading nicely above the 20 day simple moving average of $45.17 on above average volume today.  Traders are pouring into FIT ahead of its 1st earnings report since its IPO back in June.  FIT has been trading in a range between $41.70 to $48.98 over the last month, before breaking out to a new all time high today of $50.99 on volume of 15,265,261 shares.  If FIT doesn’t report a great quarter shares could fall to some near term support at $48.07 to 47.84 and then down to the 20 day moving average of $45.17.  If FIT beats analysts estimates, the sky is the limit on it, since there is no resistance past $50.99.  Keeping in mind the high price target of $57, FIT has some room to run on a good earnings report on Wednesday.  Traders should have this one on the top of their watch list for the next couple of days.

 

FitBit Inc Company Profile

Fitbit Inc. provides wearable fitness-tracking devices worldwide. The company makes both wrist bands and clippable devices that monitor a users fitness activity by tracking the calories burned or distance covered. It manufactures and markets products that track people’s health and fitness activities, including Fitbit Zip, a wireless tracker that allows users to track daily activity statistics, such as steps, distance, calories burned, and active minutes; Fitbit One, a clippable wireless tracker, which tracks stairs climbed and sleep; Fitbit Flex, a wristband-style tracker that tracks steps, distance, calories burned, active minutes, and sleep; and Fitbit Charge, a wireless activity and sleep wristband, which tracks steps, distance, calories burned, active minutes, floors climbed, and sleep. The company also provides Fitbit Charge HR, a wireless heart rate and activity wristband; Fitbit Surge, a fitness watch that consists of GPS watch, heart rate tracker, activity tracker, and smartwatch; and Fitbit Aria, a Wi-Fi connected scale that tracks weight, body fat percentage, and body mass index. In addition, it sells various accessories, such as bands and clips, charging cables, and Fitbit apparel. Fitbit Inc. sells its products primarily through retailers and distributors. The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 and is headquartered in San Francisco, California.  Yahoo! Finance

 

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Bob is a regular contributor at Warrior Trading News. He is a professional day trader and part-time investor and swing trader. He is particularly skilled at identifying catalysts in small cap stocks through technical analysis. Bob graduated with a Bachelor’s of Business Administration in Information Technology and Business. Bob was a Help Desk Analyst and IT consultant for several large firms before moving into the Real Estate and Finance industry as a Realtor and Mortgage Broker. After the market crash of 2008, Bob began studying the stock market and learning everything he could by reading books and watching lots of videos and analysis of charts, markets, and stocks. Bob is passionate about studying the markets, new technologies, and trends. You can contact Bob at bob@warriortradingnews.com Legal Disclaimer – This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional. The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author has no business relationship with any company whose stock is mentioned in this article nor is receiving compensation from any of the companies mentioned.

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