Fitbit, Inc. (FIT) Insider Stock Sales Send Up Red Flag

With 67.52 sell/buy ratio, Fitbit, Inc. (NYSE:FIT) experienced more insider selling than insider buying over the last three months. Could this be a sign for outside investors to start selling as well? FIT recorded 13 sales on the open market in the last three months. They sold nearly 1,183,846 shares while purchases amounted to 17,534 shares that period. Looking even further back to 12 months, corporate insiders offloaded 3,434,848 shares when buyers snapped up 71,284 shares. The 12-month’s totals signify about a 48.19-to-1 sell/buy ratio.

Missan Andy parted with a total of 110 thousand shares of Fitbit, Inc. (FIT) at average share price of $5. This insider trade in the company took place on 12/18/2018. The total for the sales was set at $550 thousand. After this transaction, the EVP, General Counsel, Sect. account balance stood at 78.72 thousand shares. The stock grew 19.8 percent since that insider sale. On 12/10/2018, Missan Andy, EVP, General Counsel, Sect., sold 7.5 thousand shares at a price per share of $4.89. This removed 36.68 thousand shares from the insider’s fortune and the stock saw a 22.49 percent rally in value since the news became public. This transaction left 173.86 thousand shares in the EVP, General Counsel, Sect. account.

On 11/16/2018, EVP, General Counsel, Sect. Missan Andy performed a sale transaction worth $14.22 thousand. This sale at $5.61 each has eliminated 2.53 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 6.77 percent increase since the transaction was reported. The insider now is left with 173.86 thousand shares remaining in the account. Missan Andy, who performs the EVP, General Counsel, Sect. job, sold 7.5 thousand shares for $43.28 thousand. The disposal occurred on 11/12/2018 was priced at $5.77 per share. The share price soared 3.81 percent since the reporting date. Missan Andy now left with a stake of 173.86 thousand FIT stock worth $1.04 million after the insider selling.

The 12-month median price target for Fitbit, Inc. (FIT) assigned by the analysts stands at $6.25, which represents a return potential of 4.34 percent when compared to the closing price of the stock of $5.99 on Friday, January 11. The lowest price target for the stock is $4 — slightly more than -33.22 percent from FIT’s current share price. The stock will probably climb 10.68 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $10-month high price target. This represents a whopping 66.94 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 66.34 on daily chart, which may remain a cause for concern. If the price breaks below $5.47 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $6.18 mark may result into a pull-back move towards $6.37 level. The stock is currently hovering around the first support level of $5.73. Below this, the next support is placed in the zone of $5.47. Till the time, the FIT stock trades above this level, bulls have nothing to fear.

Shares of Fitbit, Inc. (FIT) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry FIT operates in has an average P/E of 12.08. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0.94 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.75. 42 percent is the gross profit margin for Fitbit, Inc. and operating margin sits at -14.5 percent. Along with this, the net profit margin is -16.3 percent.

On 11th of January, Fitbit, Inc. (NYSE:FIT) shares ended higher after a volatile session. The shares accumulated 0.27 points or 4.72 percent at $5.99 with a heavy trade volume of 6.632 million shares. After opening the session at $5.7, the shares went as high as $6.11 and as low as $5.66, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.42 billion and now has 237.33 million shares outstanding. Fitbit, Inc. (FIT) stock has gained 20.77 percent of market value in 21 trading days.

FIT stock has a trailing 3-year beta of 1.59, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.83 a share in the trailing twelve months. The stock’s value has surged 20.52 percent year to date (YTD) against a rise of 7.16 percent in 12 month’s time. The company’s shares still trade -23.11 percent away from its 1-year high of $7.79 and 41.61 percent up from 52-week low of $4.23. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.