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Analysts’ Views on Fitbit After Its Stock Price Decline

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Historical stock returns

Fitbit (FIT) has returned -24% in the trailing 12 months, -8% in the last month, and -10.7% in the trailing five days. The stock fell 75% in 2016 and 22% in 2017, and it’s fallen 15% since the start of 2018. Peers Garmin (GRMN), GoPro (GPRO), and Fossil (FOSL) have returned 16%, -40%, and -27%, respectively, in the trailing 12 months.

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Analyst recommendations

Of the 12 analysts tracking Fitbit, two have recommended “buy,” eight have recommended “hold,” and two have recommended “sell.” Analysts’ 12-month average price target for Fitbit is $5.84, with a median target estimate of $5.45. Fitbit is now trading at a discount of 20% to analysts’ median estimate.

Moving averages

On February 27, Fitbit closed the trading day at $4.86. Based on that price, the stock’s moving averages are as follows:

  • 19% below its 100-day moving average of $5.99
  • 13% below its 50-day moving average of $5.59
  • 7.4% below its 20-day moving average of $5.25

Fitbit is currently trading 4% above its 52-week low of $4.67 and 34% below its 52-week high of $7.32.

Relative strength and moving average convergence divergence

Fitbit’s 14-day MACD (moving average convergence divergence) is -0.10. A stock’s MACD is the difference between its short-term and long-term moving averages. Fitbit’s negative MACD indicates a downward trading pattern.

Fitbit has a 14-day RSI (relative strength index) score of 43, which shows that the stock is trading close to oversold territory. An RSI is above 70 indicates that a stock has been overbought, and an RSI figure below 30 suggests that a stock has been oversold.

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