Fitbit Inc (NYSE:FIT) announced the addition of new customers including New York Life, Pitney Bowes, SAP, Sharp Healthcare and partners that will offer Fitbit activity trackers and programs to employees across a variety of industries. Fitbit continues to build corporate wellness programs that prioritize increasing employee engagement, improving health outcomes and lowering healthcare costs.
“The engagement of the Fitbit brand across consumers was a big factor in selecting Fitbit as our wellness partner to help ensure greater success of our initiatives in this area.”
Data from ABI Research suggests that corporate wellness programs that include wearable devices increase participation from an average of 20 percent without wearables to 60 percent or higher with wearables, with some employers reporting participation rates above 90 percent. According to a 2016 report by IBISWorld, companies are seeking partners that can keep up with the latest trends in software and technology.
“Employers continue to look to consumer-oriented technology and services to develop wellness programs that can empower people to take charge of their health and fitness,” said Amy McDonough, Vice President and General Manager of Fitbit Group Health. “Fitbit’s corporate wellness offering is built around the understanding that better, people-oriented technology enables stronger results using wearable devices that consumers love.”
New Notable Customer Wins Demonstrate Reach Across Industry Verticals
Customer wins spanning across industries including healthcare, financial services, consumer goods, higher education, technology and insurance highlight the continued investment organizations are making in the health and wellbeing of their workforce. Companies including Keck Medicine of the University of Southern California (USC), New York Life, Pitney Bowes, SAP, Sharp Healthcare and Teach for America will now be working with Fitbit Group Health to develop programs tailored to the needs of their unique employee populations.
“With a large workforce across a variety of job functions and locations we needed a wellness solution that would be effective for a diverse population,” said, Megan Spurling, Manager of Employee Wellness at Sharp Healthcare. “The engagement of the Fitbit brand across consumers was a big factor in selecting Fitbit as our wellness partner to help ensure greater success of our initiatives in this area.”
Employers Expand Fitbit Programs to Include Friends and Family
Knowing that one size does not fit all in health and fitness, Fitbit designs devices and programs to integrate seamlessly into people’s daily lives and activities. Fitbit data suggests that users with friends on the Fitbit platform take an average of 11 percent more steps than users without a friend on the platform and employer wellness customers are taking advantage of this trend to engage beyond just the employee.
Many Fitbit customers utilize friends and family discounts as a part of their wellness program, including Pitney Bowes, Emory University and Emory Healthcare and the University of Kentucky. SAP, the leader in business applications, launched their program by offering a subsidized Fitbit for their employees and additional discounted devices to friends and family. Due to the popularity of the 2016 program, Fitbit will expand access to SAP global employees in 2017. Pitney Bowes is taking a similar approach, offering subsidized devices for 10,000 employees and their spouses and domestic partners in the U.S. and discounts to the other employees worldwide. Those that participate will have the added convenience of automatically syncing their fitness and nutrition data while participating in company-provided wellness programs, open to employees and family members.
“We know that staying healthy and moving more throughout the work day can be challenging,” said Andrew Gold, Vice President of Total Rewards at Pitney Bowes. “By offering Fitbit to our employees, we’re helping to motivate people at Pitney Bowes to take healthy actions while having fun with their family, friends and co-workers.”
Fitbit Corporate Wellness Extends Reach Through Global Partner
Fitbit has also announced a strategic partnership with leading wellness provider Virgin Pulse, expanding access to Fitbit’s technology and services to their customers. Fitbit and Virgin Pulse launched a strategic partnership, in which the companies will offer preferred pricing on Fitbit trackers and collaborate to develop unique user experiences for the more than 2,200 Virgin Pulse employer customers around the world.
Fitbit Group Health corporate wellness offering includes access to Fitbit’s suite of award winning trackers, custom e-commerce storefronts, seamless distribution, engaging wellness challenges and comprehensive tracking and reporting. (Original Source)
Shares of Fitbit are currently trading at $7.47, up $0.03 or +0.40%. FIT has a 1-year high of $30.96 and a 1-year low of $7.40. The stock’s 50-day moving average is $8.62 and its 200-day moving average is $12.79.
On the ratings front, Fitbit has been the subject of a number of recent research reports. In a report issued on December 8, Deutsche Bank analyst Sherri Scribner downgraded FIT to Hold, with a price target of $9, which represents a potential upside of 21% from where the stock is currently trading. Separately, on December 7, Mizuho’s Betty Chen reiterated a Hold rating on the stock and has a price target of $9.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Sherri Scribner and Betty Chen have a yearly average return of 13.1% and a loss of -4.8% respectively. Scribner has a success rate of 68% and is ranked #227 out of 4291 analysts, while Chen has a success rate of 42% and is ranked #3879.
Sentiment on the street is mostly neutral on FIT stock. Out of 20 analysts who cover the stock, 16 suggest a Hold rating , 2 suggest a Sell and 2 recommend to Buy the stock. The 12-month average price target assigned to the stock is $10.20, which implies an upside of 37% 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.