Fitbit Inc (NYSE:FIT), the leader in the connected health and fitness market, today announced it has acquired wearable payment assets of Coin, a Silicon Valley consumer electronics and financial technology company. The deal includes key personnel and intellectual property specific to Coin’s wearables payment platform. While there are no plans to integrate Coin’s wearable payments technology into the 2016 Fitbit product roadmap, the acquisition accelerates Fitbit’s ability to develop an active NFC payment solution that could be embedded into future Fitbit devices, broadening its smart capabilities. The acquisition excludes smart payment products, such as Coin 2.0.
This acquisition is indicative of Fitbit’s commitment to innovation, which centers on making connected health and fitness devices that are motivating, smart, and stylish.
“We are focused on making wearable devices that motivate people to reach their health and fitness goals, and that also make their lives easier with the smart features they need most,” said James Park, CEO and co-founder of Fitbit. “Coin has been one of the key innovators in advanced payment solutions. The inclusion of their payment technology into our offerings will further our strategy of making Fitbit products an indispensable part of people’s lives.”
The transaction was completed on May 12. (Original Source)
Shares of Fitbit are up nearly 2% in early trading Wednesday. FIT has a 1-year high of $51.90 and a 1-year low of $11.91. The stock’s 50-day moving average is $15.75 and its 200-day moving average is $20.51.
On the ratings front, Fitbit has been the subject of a number of recent research reports. In a report issued on May 5, FBN analyst Shebly Seyrafi reiterated a Buy rating on FIT, with a price target of $22, which represents a potential upside of 55.3% from where the stock is currently trading. Separately, on the same day, Oppenheimer’s Andrew Uerkwitz initiated coverage with a Buy rating on the stock and has a price target of $25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Shebly Seyrafi and Andrew Uerkwitz have a total average return of -2.2% and 4.1% respectively. Seyrafi has a success rate of 48.4% and is ranked #3219 out of 3833 analysts, while Uerkwitz has a success rate of 52.1% and is ranked #569.
The street is mostly Bullish on FIT stock. Out of 20 analysts who cover the stock, 11 suggest a Buy rating and 9 recommend to Hold the stock. The 12-month average price target assigned to the stock is $24.14, which implies an upside of 70.4% from current levels.
Fitbit, Inc. engages in the development of wearable device which tracks data of an individual’s health. It offers products which can track a person’s activities, such as calories burned, sleep quality, steps, and distance. The data collected allows an individual to monitor their progress towards their own personal goals. The company was founded by Eric N. Friedman & James Park in March, 2007 and is headquartered in San Francisco, CA.