Fitbit, Inc. [NYSE: FIT] shares went lower by -0.43% from its previous closing of $3.51, now trading at the price of $3.49, also adding -0.02 points. Is FIT stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 2.37 million contracts. Compared to the average trading volume of FIT shares, the company saw a far better performance. Moreover, the stock has a 222.50M float and a +11.86% run over in the last seven days. FIT share price has been hovering between $6.96 and $2.81 lately, and is definitely worthy of attention.
Fitbit, Inc. [NYSE:FIT]: Analyst Rating and Earnings
Its stock price has been found in the range of 2.81 to 6.96. This is compared to its latest closing price of $3.51.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 30 Oct (In 49 Days).
Fundamental Analysis of Fitbit, Inc. [FIT]
Now let’s turn to look at profitability: with a current Operating Margin for Fitbit, Inc. [FIT] sitting at -13.15 and its Gross Margin at +39.58, this company’s Net Margin is now -8.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -25.35, and its Return on Invested Capital has reached -26.00%. Its Return on Equity is -23.83, and its Return on Assets is -12.00. These metrics suggest that this Fitbit, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for
What about valuation? This company’s Enterprise Value to EBITDA is -1.23. The Enterprise Value to Sales for this firm is now 0.11. Fitbit, Inc. [FIT] has a Price to Book Ratio of 1.70, a Price to Cash Flow Ratio of 10.74.
Shifting the focus to workforce efficiency, Fitbit, Inc. [FIT] earns $887,590 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.19 and its Total Asset Turnover is 0.97. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.65 and its Current Ratio is 1.82. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Fitbit, Inc. [FIT] has 245.68M shares outstanding, amounting to a total market cap of $862.34M. Its stock price has been found in the range of 2.81 to 6.96. At its current price, it has moved down by -49.78% from its 52-week high, and it has moved up 24.38% from its 52-week low.
This stock’s Beta value is currently 1.58, which indicates that it is 5.89% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 55.63. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Fitbit, Inc. [FIT] a Reliable Buy?
Shares of Fitbit, Inc. [FIT], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.