Fitbit Inc (NYSE:FIT) announced that it intends to file a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) on November 2, 2015 relating to a proposed underwritten follow-on public offering of its Class A common stock. Fitbit is proposing to sell 7,000,000 shares and certain selling stockholders are proposing to sell 14,000,000 shares. In addition, the selling stockholders will grant the underwriters a 30-day option to purchase up to an additional 3,150,000 shares. Fitbit will not receive any proceeds from the sale of the shares by the selling stockholders.
The principal purposes of the proposed offering are to increase Fitbit’s financial flexibility, obtain additional capital, facilitate an orderly distribution of shares for the selling stockholders, and increase Fitbit’s public float. The proceeds of the primary portion of the proposed offering will be used to provide additional working capital for Fitbit and for other general corporate purposes, including research and development and sales and marketing activities, general and administrative matters, and capital expenditures. As part of the underwriting procedures, all selling stockholders, as well as all executive officers and directors, will agree to enter into lock-up agreements for a period of 90 days following the proposed offering. (Original Source)
Shares of Fitbit are down 7.07% to $37.87 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 $37.21 and its 200-day moving average is $39.19.
On the ratings front, Fitbit has been the subject of a number of recent research reports. In a report issued on October 28, Cowen analyst John Kernan reiterated a Hold rating on FIT, with a price target of $41, which represents a slight downside potential from current levels. Separately, on October 27, Leerink Swann’s Steven Wardell 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 Steven Wardell have a total average return of 3.3% and 2.0% respectively. Kernan has a success rate of 60.5% and is ranked #1454 out of 3808 analysts, while Wardell has a success rate of 56.3% and is ranked #1955.
Overall, 4 research analysts have assigned a Hold rating and 10 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 34.8% 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.