The shares of Fitbit Inc (NYSE:FIT) are trading 6.46% higher in the morning session following a new corporate customer announcing mass implementation of their fitness products. Target Corporation (NYSE:TGT), one of the largest retailers in the country, has decided to equip its 335,000 employees with the wearable health-tracking devices offered by Fitbit Inc. According to the announcement, the employees of the retailer will each get a Fitbit Zip, worth $59.95, for free, with an option to purchase a higher model, which will be further subsidized by the retailer. This is one of the biggest corporate partnerships for Fitbit yet under its Corporate Wellness program.
The Fitbit Corporate Wellness initiative has attracted customers from all around the business community, including big names like Bank of America Corp (NYSE:BAC), Adobe Systems Incorporated (NASDAQ:ADBE), and Time Warner Inc (NYSE:TWX). According to its latest quarterly report, Fitbit is offering its wellness program to more than 50 companies in the Fortune 500 list. Under its corporate wellness program, the fitness company offers both employee and employer dashboards along with other powerful reporting features, with the implementation phase lasting less than six weeks irrespective of the size of the business. It works in collaboration with major health institutions and companies including Vitality, Virgin Pulse, ShapeUp, Cleveland Clinic, and many more.
Fitbit Inc (NYSE:FIT) is attracting more corporate customers with its wide-range of products and according to its latest announcement, the company is offering U.S Health Insurance Portability and Accountability Act (HIPAA) compliant capabilities with its programs. James Park, CEO of Fitbit, said, “We prioritize protecting our consumers’ privacy and keeping their data secure. Our compliance with HIPAA safeguards formalizes this commitment, and, more importantly, it creates opportunities for more effective relationships with corporate wellness customers.”
The stock of Fitbit Inc is trading 17.35% higher since its IPO in June of this year. Pacific Crest initiated coverage on the firm with an “Overweight” rating yesterday along with a price target of $47, representing an upside potential of 36.31%. The fitness company reported its second quarter financial results on August 5, announcing revenues of $400 million for the quarter, and 253% year-over-year growth. Its non-GAAP earnings per share of $0.21 were much better than the analysts’ estimate of $0.07 per share. Among the hedge funds that we track at Insider Monkey, 27 hedgies had long positions in the company by June 30, mere days after its IPO, and held 3.2% of the outstanding shares of the firm, with their aggregate holdings being valued at $249.92 million. John Griffin‘s Blue Ridge Capital, Tiger Global Management LLC, and Andor Capital Management were some of the major shareholders of the company, holding 3.50 million shares, 500,000 shares, and 350,000 shares, respectively.
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