Fitbit Inc (NYSE:FIT) and DexCom, Inc. (NASDAQ:DXCM) announced a collaboration to develop and market products to help people better manage their diabetes and get a more complete picture of their overall health with easy-to-use mobile tools.
The first planned initiative is to bring Dexcom CGM data to Fitbit’s new smartwatch, Fitbit Ionic. Through this experience, Dexcom CGM users on either Android or iOS devices would be able to see both activity and glucose levels, right on their wrist.
“The strength of our brand and our ability to track critical health metrics continuously for up to 4+ days, coupled with Dexcom’s market leadership in CGM, present a powerful combination that we hope will help millions of people better manage their diabetes,” said James Park, CEO of Fitbit. “With Ionic, we are focused on driving positive health outcomes and more health focused tools, and this collaboration is a wonderful example of how we plan to bring that vision to our users.”
Dexcom CGM Display on Fitbit Ionic will provide data for those living with diabetes
The World Health Organization estimates that more than 400 million people around the world are living with diabetes. For those individuals being able to see both physical activity and glucose can be a vital tool for effectively managing their diabetes.
“The collaboration between Dexcom and Fitbit is an important step in providing useful information to people with diabetes that is both convenient and discreet,” said Kevin Sayer, President and CEO, Dexcom. “We believe that providing Dexcom CGM data on Fitbit Ionic, and making that experience available to users of both Android and iOS devices, will have a positive impact on the way people manage their diabetes.”
A health and fitness first platform, Ionic offers a highly personalized experience not previously seen in other smartwatches. Ionic features a relative SpO2 sensor, industry-leading GPS tracking, on-device dynamic workouts, improved heart rate tracking, and water resistance up to 50 meters. Plus, smart features like contactless payments, on-board music, smart notifications, and a variety of popular apps and clock faces available in the Fitbit App Gallery. Ionic also has all the core features from Fitbit like 4+ day battery life, automatic activity and sleep tracking, and cross-platform compatibility.
In addition to the Dexcom CGM display for Fitbit Ionic, with Fitbit’s in-app Community, Dexcom CGM users will now be able to connect with millions of people, where they can ask questions, seek support and share successes in managing their health.
The companies are targeting availability as soon as possible in 2018 and will continue to explore opportunities to work together to develop tools and resources aimed at helping people better manage their diabetes.
Shares of Fitbit are currently trading at $6.45, up $0.54 or 9.14%. FIT has a 1-year high of $17.18 and a 1-year low of $4.90. The stock’s 50-day moving average is $5.60 and its 200-day moving average is $5.62.
On the ratings front, Fitbit has been the subject of a number of recent research reports. In a report issued on September 1, Baird analyst William Power maintained a Hold rating on FIT, with a price target of $6.00, which represents a slight upside potential from current levels. Separately, on August 29, Raymond James’ Tavis McCourt reiterated 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, William Power and Tavis McCourt have a yearly average return of 7.4% and 9.0% respectively. Power has a success rate of 61% and is ranked #669 out of 4633 analysts, while McCourt has a success rate of 63% and is ranked #475.
Sentiment on the street is mostly neutral on FIT stock. Out of 8 analysts who cover the stock, 5 suggest a Hold rating and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $6.5, which represents a potential upside of 10% from where the stock is currently trading.
Fitbit engages in the development of wearable device which tracks data of an individual’s health. The company offers wrist-based and clippable devices, which can track users daily steps, calories burned, distance traveled and active minutes and display a real-time feedback. Its users also measure floors climbed, sleep duration and quality, and its products track heart rate and GPS-based information such as speed, distance, and exercise routes.