Stock rose 21% last month
Fitbit (FIT) stock rose 21% in June to close at $6.53. The stock is currently trading at $6.61, which is 47% above its 52-week low of $4.51 and 15% below its 52-week high of $7.79. Fitbit has generated returns of 16% so far in 2018 after falling 22% in 2017. In the trailing 12 months, Fitbit stock has risen 21%.
Fitbit Versa device drives stock
Fitbit stock has been on an uptrend since the company launched its Fitbit Versa, which is expected to drive device sales. Last month, Fitbit confirmed that it shipped more than a million Fitbit Versa devices since the launch on April 16.
Fitbit has been struggling in the wearable segment with its market share declining over the last several quarters. It’s competing with tech giants such as Apple and Xiaomi as well as niche players such as Garmin (GRMN) and Fossil (FOSL).
In June, Citron Research provided an optimistic outlook for Fitbit. It expects the stock to reach $15 over the next 12 months. According to Citron’s research report, “What was once a piñata for short-sellers (since IPO) has transformed itself to one of the most underappreciated med-tech stories in the market with a balance sheet and brand equity that gives investors a tremendous investing opportunity.”