GoPro Inc. (NASDAQ: GPRO): Stock That Needs Special Handling


    The Vanguard Group, Inc. recently announced the acquisition of new stake in GoPro Inc. (NASDAQ:GPRO). The institutional investor has increased its shareholding in the Technology company by 2.51% to 11.04 million shares with purchase of 0.27 million shares. This fresh investment now brings its stake to 8.58% valued currently at $52.56 million. In addition, JPMorgan Securities LLC (Investme… raised its holdings by 5.06 million to 9.85 million shares. And BlackRock Fund Advisors has lifted its position by 1.67% or 0.13 million shares – to 7.94 million shares.

    With over 3.13 million GoPro Inc. (GPRO) shares trading Friday and a closing price of $5.29 on the day, the dollar volume was approximately $16.57 million. The shares have shown a positive weekly performance of 4.75% and its price on 07/31/20 gained nearly 2.12%. Currently, there are 147.56M common shares owned by the public and among those 127.52M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 6 analysts who have offered their price forecasts for GPRO have a consensus price objective of $3.88. The analysts have set the share’s price value over the next 12 months at a high of $7.00 and a low of $2.50 should the stock experience a downside. Incidentally, analysts’ outlook for the GoPro Inc. stock is 3.20 for the next 12 months. The average price target is -36.34% below its last price level and a downside to the estimated low will see the stock lose -111.6% over that period. But an upside of 24.43% will see the stock hit the forecast high price target while mean target price for the stock is $3.00.

    Insiders at the company have transacted a total of 40 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 18 of these insider trades were purchases, accounting for 1,191,823 shares. Insider sales of the common stock occurred on 22 occasions, with total insider shares sold totaling 192,026 shares.

    The top 3 mutual fund holders in GoPro Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and iShares Russell 2000 ETF. Vanguard Total Stock Market Index owns 3.45 million shares of the company’s stock, all valued at over $16.41 million. Vanguard Small Cap Index Fund sold 48846.0 shares to see its total holdings shrink to 3.06 million shares valued at over $14.59 million and representing 2.38% of the shares outstanding. iShares Russell 2000 ETF sold 67983.0 shares to bring its total holdings to over 2.68 million shares at a value of $12.75 million. iShares Russell 2000 ETF now owns shares totaling to 2.08% of the shares outstanding.

    Shares of GoPro Inc. (NASDAQ: GPRO) opened at $5.20, up $0.02 from a prior closing price of $5.18. However, the script later closed the day at $5.29, up 2.12%. The company’s stock has a 5-day price change of 4.75% and 60.30% over the past three months. GPRO shares are trading 21.89% year to date (YTD), with the 12-month market performance up to 5.17% higher. It has a 12-month low price of $2.00 and touched a high of $5.79 over the same period. Currently, 3.13 million shares have been traded, compared to an average intraday trading volume of 3.05 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.62%, 10.68%, and 32.27% respectively.

    Institutional ownership of GoPro Inc. (NASDAQ: GPRO) shares accounts for 65.00% of the company’s 147.56M shares outstanding. Mutual fund holders own 21.54%, while other institutional holders and individual stakeholders account for 37.99% and 16.76% respectively.

    It has a market capitalization of $851.74M and a beta (3y monthly) value of 1.46. The earnings-per-share (ttm) stands at -$0.37. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.16% over the week and 4.29% over the month.

    Analysts forecast that GoPro Inc. (GPRO) will achieve an EPS of -$0.17 for the current quarter, $0.01 for the next quarter and $0.35 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.27 while analysts give the company a high EPS estimate of -$0.04. Comparatively, EPS for the current quarter was $0.03 a year ago. Earnings per share for the fiscal year are expected to increase by 87.10%, and 284.20% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -16.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 6 brokerage firm advisors rate GoPro Inc. (GPRO) as a “Hold” at a consensus score of 3.20. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 6 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the GPRO, a number of firms have released research notes about the stock. Citigroup stated their Sell rating for the stock in a research note on March 16, 2020, with the firm’s price target at $4.50-$2.50. Oppenheimer coverage for the GoPro Inc. (GPRO) stock in a research note released on October 03, 2019 offered a Outperform rating with a price target of $7. Oppenheimer was of a view on September 26, 2018 that the stock is Outperform, while Citigroup gave the stock Neutral rating on February 05, 2018, issuing a price target of $7- $5.50. JP Morgan on their part issued Neutral rating on February 02, 2018.


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