Pacific Crest Reiterates a Sell Rating on Fitbit

By Carrie Williams

In a report released yesterday, Brad Erickson from Pacific Crest reiterated a Sell rating on Fitbit (NYSE: FIT). The company’s shares opened today at $12.81, close to its 52-week low of $8.37.

Erickson said:

“We’ll continue monitoring demand for signs of improvement, but unless we see a recovery, we remain sellers of FIT, and view downside to $8 with a bear case of $6 based on 0.6x EV-to-sales.”

According to, Erickson is ranked 0 out of 5 stars with an average return of -10.3% and a 41.7% success rate. Erickson covers the Technology sector, focusing on stocks such as TripAdvisor Inc., Qualcomm Inc, and FleetMatics.

Currently, the analyst consensus on Fitbit is Hold and the average price target is $13, representing a 1.5% upside.

In a report released today, Merrill Lynch also reiterated a Sell rating on the stock with a $9 price target.

Fitbit’s market cap is currently $2.83B and has a P/E ratio of 24.17. The company has a book value ratio of 2.6553.

Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Jon Callaghan, a Director at FIT sold 15,000 shares for a total of $195,900.

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. The company was founded by Eric N. Friedman & James Park in March, 2007 and is headquartered in San Francisco, CA.