Fitbit attracts new attention from short-sellers

Reuters

Published Oct 01, 2015 03:38PM ET

Updated Oct 01, 2015 03:58PM ET

Fitbit attracts new attention from short-sellers

By Noel Randewich

SAN FRANCISCO (Reuters) - Wearable gadget maker Fitbit Inc (N:FIT) attracted far more bets against its recently rising stock in September, underscoring concerns about competition from the likes of Apple Inc (O:AAPL).

Since Sept. 10, borrowing in Fitbit shares has jumped 50 percent, according to lending data from SunGard's Astec Analytics, which provides a strong glimpse into short-selling activity.

Short-sellers borrow shares and sell them, hoping to buy them back later for less to return to the lender.

While short-selling in Fitbit declined from 7.4 percent of outstanding shares at the end of August to 6.9 percent in mid-September, that rate is still much higher than the average short interest of 2.7 percent for tech companies, according to Thomson Reuters data.

San Francisco-based Fitbit makes wrist bands and clippable devices that monitor fitness activity by tracking calories burned or distance covered, among other metrics.

Fitbit's stock market listing in June won a rousing response from investors. The shares rose to a high of $51.90 on Aug. 5 from their $20 IPO price.

Auguring well for the nascent consumer electronics niche, global shipments of wearable devices more than tripled to 18.1 million units in the second quarter, according to market research firm IDC.