Fitbit Inc (NYSE:FIT), the leader in the connected health and fitness market, today announced that it has commenced a follow-on public offering of its Class A common stock pursuant to a registration statement on Form S-1 filed previously with the U.S. Securities and Exchange Commission (SEC). Fitbit is proposing to sell 7,000,000 shares of Class A common stock and certain selling stockholders are proposing to sell 14,000,000 shares of Class A common stock. In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 3,150,000 shares of Class A common stock to cover over-allotments. Fitbit will not receive any proceeds from the sale of the shares by the selling stockholders.
Morgan Stanley, Deutsche Bank Securities, BofA Merrill Lynch, Barclays, and Citigroup will act as active joint book-running managers for the proposed offering. SunTrust Robinson Humphrey, Piper Jaffray, RBC Capital Markets, and Stifel will act as passive joint book-running managers. (Original Source)
Shares of Fitbit are down 1.15% to $37.10 in after-hours trading. FIT has a 1-year high of $51.90 and a 1-year low of $29.50. The stock’s 50-day moving average is $37.44 and its 200-day moving average is $39.13.
On the ratings front, Fitbit has been the subject of a number of recent research reports. In a report issued on November 3, Cowen analyst John Kernan reiterated a Hold rating on FIT, with a price target of $41, which implies an upside of 8.5% from current levels. Separately, on the same day, Pacific Crest’s Brad Erickson maintained a Buy rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Kernan and Brad Erickson have a total average return of 3.1% and -5.0% respectively. Kernan has a success rate of 60.5% and is ranked #1542 out of 3829 analysts, while Erickson has a success rate of 52.0% and is ranked #3247.
Overall, 2 research analysts have assigned a Hold rating and 7 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 $56.00 which is 48.1% above where the stock opened today.
Fitbit Inc provides fitness tracking devices, wearable devices, and the health and fitness industry. It provides platform to combine connected health and fitness devices with software and services.