A lockup on roughly 170M Fitbit (FIT) shares controlled by company insiders and early investors is set to expire next week, potentially generating a period of volatility for the shares of the fitness wearables maker. LOCKUP: The expiration of selling restrictions enforced as part of a public offering of stock is known as a "lockup expiration," and stocks are often volatile around such expiration dates. A lockup restriction on 170.39M Fitbit shares tied to the company's IPO will expire December 15, according to Bloomberg data. Weighing in on the event, Leerink argued in a pair of recent research notes that the company's secondary stock offering of 17M shares in November was a "constructive step" towards limiting any share price effect from the coming expiration. The decision by company insiders to sell some of their stock -- whether through the November offering or after the December lockup -- "were reasonable to expect" and keeps insider interests "well aligned" with outside investors, said the research firm, adding that an increase in Fitbit shares on the open market will actually lower volatility and improve the stock's appeal. PRICE ACTION: Shares of Fitbit are down roughly 1% to $30.93 in Thursday trading after plunging more than 22% in mid-November following news of the secondary share offering
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