Fitbit surged as much as 7% in early Monday trading after reports the company is exploring a sale drove shares 12% higher on Friday. The stock has climbed as much as 19% over the two days, and currently sits near its highest levels since late July.
The smartwatch maker has been discussing possible acquisition plans with investment bank Qatalyst Partners, Reuters reported Friday. Qatalyst has reportedly encouraged a sale for weeks and argued the company could attract a bid from Google-parent Alphabet.
Fitbit hasn't decided whether it will pursue a sale, sources familiar with the discussions told Reuters. The company lowered its yearly revenue forecast in July after its cheapest Versa Lite smartwatch sold fewer units than expected.
Fitbit has struggled in its sector as smartwatch competition from Apple and Samsung has eaten away at its modest share of the market. The company only holds about 6% of the wearables market as of early August, The Wall Street Journal reported. Apple and Samsung control 26% and 9% of the market, respectively.
Apple announced a new Series 5 watch earlier in September and slashed the price of its Series 3 product to $199. The discounted Apple Watch comes in around $30 lower than the price of Fitbit's latest Versa 2 smartwatch.
Fitbit traded at $4.17 per share as of 10:50 a.m. ET Monday, down about 15% year-to-date.
The company has three "buy" ratings, five "hold" ratings, and two "sell" ratings from analysts, with a consensus price target of $4.99, according to Bloomberg data.
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