Why Fitbit Inc. (FIT) Closed More Than 4% Higher Thursday
Zacks Investment Research | Jul 07, 2016 05:48AM ET
Fitness Wearable maker Fitbit Inc. (NYSE:FIT) saw its shares close Thursday 4.48% at $13.07 amid speculation the company is field testing two new devices that are expected to be announced during September’s IFA. The IFA is the official press event of the global trade show featuring companies exhibiting new technologies.
Warable said Thursday that the two devices are reportedly being tested under the code-names Laryon and Fermion, a method Fitbit has used in the past when testing new products. Also, the company has applied for trademarks for Fitbit Flex, and Fitbit Charge 2, which are speculated to be the products Laryon and Fermion will become.
Fitbit is also benefitting from its recent announcement of its partnership with the Dana-Farber Cancer Institute for the purpose of conducting research to determine whether exercise helps decrease the recurrence of breast cancer. The company’s fitness trackers will be used in the six-year-long study, which is scheduled to begin in August and will involve 3,200 women. Fitbit trackers will help researchers to track and monitor the activity of the participants to ensure the most accurate study results.
Bottom Line
Fitbit shares are down nearly 56% year-to-date, but a recent boost in share price and in company activity is certainly a good sign for investors. It is still early in the company’s public history, and it will need to continuously innovate and garner new customer bases to ensure its success. Only time will tell if the company can get back to a share price in the mid -20’s. FIT is currently a Zacks Rank #3 (Hold), but does have an A for both its Value and Growth Style Scores.
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