Fitbit Inc (FIT) Traders Eye New Lows Amid Competition Concerns

Fitbit Inc (NYSE:FIT) has been struggling due to news Apple Inc. (NASDAQ:AAPL) is gaining in the wearable tech market

Aug 28, 2015 at 11:36 AM
facebook X logo linkedin

Yesterday, Fitbit Inc (NYSE:FIT) took a more than 12% spill -- earning itself a place on the short-sale restricted (SSR) list -- as reports surfaced claiming Apple Inc. (NASDAQ:AAPL) is close to usurping the company as the leader in the wearable tech market. FIT isn't done sliding, though. The shares are down another 4.3% to sit at $33.47 today.  

Shares of FIT debuted at $30.40 on June 18 -- well above their IPO price of $20 -- and more recently, this level acted as a magnet for the stock. As a result, short sellers have been moving in. Short interest more than doubled during the two most recent reporting periods, and now represents over 10% of FIT's float.

Moreover, after the stock was placed on the SSR list yesterday, bears made their way to the options pits. More than 950 contracts were bought to open at the front-month September 30 put yesterday, meaning traders expect the stock to breach the round-number level -- and hit all-time lows -- by the close on Friday, Sept. 18, when the options expire.. 

For now, the majority of analysts remain in the bulls' corner, as "buy" and "strong buy" recommendations still outnumber "holds." Then there's Fitbit Inc's consensus 12-month price target of $55 -- a more than 64% climb from current levels. If analysts begin to share shorts' pessimistic outlook, downgrades and/or price-target reductions could further harm FIT
Meanwhile, 21 analysts rate Apple Inc. at least a "buy," with 11 others saying it's a "hold" -- the stock still hasn't received a "sell" recommendation since 2009. The shares were last seen slightly lower near $112.10, as traders weigh news of a partnership with the Pentagon, and reports that a major music executive has hit the bricks.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI