Fitbit Spikes After Nike Buyout Rumor

According to market chatter, investors may be intrigued by the possibility of Nike Inc NKE buying out Fitbit Inc FIT.

Earlier in the day, Benzinga heard unconfirmed talk of a potential buyout, and subsequently saw Fitbit shares spike to a high of $13.56.

While expert opinions toward Fitbit remain murky, the stock appears to be responding positively to these rumors.

Wary Opinions

A recent LearnBonds article called out Fitbit as in a "no trade zone" on Tuesday, "Fitbit Inc looked like a winner in its first stretch as a publicly traded company. But shares have dramatically collapsed, largely on concerns that competition is heating up in the market for fitness tracking devices."

Related Link: Fitbit Blaze Exceeding Expectations, Dougherty Says

LearnBonds' Abhijit Sen went on, "With the stock deep in oversold territory, is it ready to form a bottom, or should investors prepare for a fresh wave of selling? […] The charts don't suggest any long term bottom is yet in place, for that to happen, Fitbit Inc must first close above $17.50, on greater than average volume. Until then, the stock is in a ‘no trade zone.'"

Charles Anderson, an analyst for Dougherty, however, highlighted upside potentials for Fitbit in a recent note, "We have consistently said that Fitbit is likely to trade in sympathy with how well its new products are received by the market. While it is early, we can say with confidence that the Fitbit Blaze looks to be exceeding expectations out of the gate."

Dougherty reiterated its Neutral rating on the stock.

According to CWRU Observer, the stock has an average Outperform rating, with four analysts rating the stock at Buy, six at Outperform and 11 at hold.

Fitbit is up 9.88 percent over the last five trading days, and is up 2.61 percent on the day at $13.37.