Fitbit Inc (NYSE: FIT) announced the addition of Fitbit Charge 2, the top selling fitness tracker in the U.S., into the recently expanded UnitedHealthcare Motion wellness program, powered by Qualcomm Life, Inc., a wholly owned subsidiary of QUALCOMM, Inc. (NASDAQ: QCOM). Offered to employers by UnitedHealthcare (NYSE: UNH), UnitedHealthcare Motion is an employer-sponsored wearable device wellness program that will soon enable people using Fitbit Charge 2 to track against the program’s activity metrics easily and conveniently – right on-wrist.
“This integration is a first of its kind for Fitbit and brings together market leaders in healthcare and technology to drive better health outcomes and cost savings for both consumers and employers,” said James Park, co-founder and CEO, Fitbit. “It’s a demonstration of Fitbit’s commitment to delivering innovative solutions that combine the power of technology with insights to help people take a more proactive role in their health and offer motivation to reach their goals.”
UnitedHealthcare Clients and Members Can Earn Financial Incentives with Fitbit Charge 2
First launched in March of 2016, UnitedHealthcare Motion rewards participating employees and eligible dependents for being active.
The recently announced program expansion will enable UnitedHealthcare Motion program participants to use a Fitbit Charge 2 to earn up to $1,500 in Health Savings Account (HSA) or Health Reimbursement Account (HRA) credits per year. Program enrollees have so far earned millions of dollars in financial incentives, while employers can obtain premium savings based on participants’ combined results.
A 2013 study showed that people who walk less than 2,000 steps per day may have annual medical costs of over $10,000; conversely, those who walk 8,000 or more steps per day may decrease those costs to as low as $3,0002.
“Studies estimate that if a company can increase its active employee percentage from one-third to two-thirds, the total healthcare costs could be reduced significantly,” said Dr. Richard Migliori, Chief Medical Officer, UnitedHealth Group. “By providing people with leading technology that is convenient and intuitive, we can enable more people to access UnitedHealthcare Motion and help them pursue their health goals.”
Fitbit Charge 2 Integration into 2net Signals Fitbit’s Continued Integration into Healthcare
The integration of Fitbit Charge 2 into Qualcomm Life’s 2net Platform is the next step in Fitbit’s journey as a health and fitness company.
“As Qualcomm Life continues to expand the reach of our connected health ecosystem, we are thrilled to integrate Fitbit technology to our 2net Platform,” said James Mault, M.D., F.A.C.S., vice president and chief medical officer of Qualcomm Life. “By making Fitbit Charge 2 available for UnitedHealthcare Motion participants, we are enabling people to pick the right device for their personal health journey.”
Over the last seven years, Fitbit Group Health has enabled population health providers to scale the subsidization and distribution of Fitbit trackers within corporate wellness programs, engage employees and members with Fitbit’s corporate wellness experience, and measure the impact of Fitbit-powered programs. Today, over 2.6 million Fitbit users connect their data into population health and health management platforms comprising Fitbit’s own corporate wellness solution, health plan platforms, management solutions and more.
The custom UnitedHealthcare Motion feature will be available in early 2017 on all Fitbit Charge 2 devices and can be activated for eligible program participants. (Original Source)
Shares of Fitbit are currently rising 2.46% to $7.50, or up $0.18 in pre-market trading Tuesday. FIT has a 1-year high of $30.96 and a 1-year low of $7.20. The stock’s 50-day moving average is $8.08 and its 200-day moving average is $12.45.
On the ratings front, Fitbit Inc. has been the subject of a number of recent research reports. In a report issued on December 27, CFRA analyst Scott Kessler reiterated a Hold rating on FIT. Separately, on December 22, Citigroup’s Stanley Kovler maintained a Hold rating on the stock and has a price target of $8.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Kessler and Stanley Kovler have a yearly average return of 8.7% and 2.0% respectively. Kessler has a success rate of 73% and is ranked #448 out of 4345 analysts, while Kovler has a success rate of 57% and is ranked #1968.
Overall, one research analyst has rated the stock with a Sell rating, 18 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $10.20 which is 39.3% above where the stock closed last Friday.
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.