NEW YORK (TheStreet) -- Shares of Fitbit (FIT) were plunging 29.74% to $9 on heavy trading volume mid-Thursday morning after the company posted weak 2016 third quarter revenue and gave a downbeat outlook for the fourth quarter and full year.

Bank of America/Merrill Lynch downgraded the stock two notches to "underperform" from "buy" this morning, lowering its price target to $9 from $24.

The company's quickly declining revenue in the second half of 2016 gives the firm little confidence in fiscal 2017, the Fly reports.

Additionally, SunTrust reduced its rating on the stock to "hold" from "buy" and dropped its price target to $10 from $17 earlier today.

Fitbit's outlook "raised questions around company forecasting, customer demand, and the category's maturity," SunTrust said, the Fly notes. The firm added that demand for Fitbit's current offerings is waning while new products aren't expected until "well into 2017."

The stock was downgraded to the equivalent of a "neutral" rating from "buy" at several other firms including Citigroup, Wedbush, Morgan Stanley, Longbow and Mizuho. Piper Jaffray cut the stock's rating to "underweight" from "neutral," according to the Fly.

More than 33.67 million shares of Fitbit have traded so far today vs. the 30-day average of 7.79 million.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.

Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

You can view the full analysis from the report here: FIT


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