STOCK OF THE DAY: GOPRO

GOPRO

GoPro Inc. (GoPro) produces and sells cameras and wearable accessories. GoPro went public on June 26, 2014 with initial public offering price of $24 per share. The company is headquartered in San Mateo, California and was founded by Nicholas Woodman in 2002. The stock has 52-week low of $2 and high of $6.065. the stock is currently trading at $4.68 on NASDAQ and is up almost 5 percent for the day.

GoPro has market capital of $737.4 million with beta of 1.4, which indicates that the stock is more volatile compared to stock market. The company will release its next earnings report on July 30, 2020 aftermarket hours. GoPro has an average daily trading volume of 3.3 million, with 128.7 million outstanding shares. Analysts have average target price of $3.88 for the stock, which shows 16.92 percent downside from its current market price. Recently on June 11, 2020, Erik Woodring, Morgan Stanley analyst covering GoPro rated the stock as sell with target price of $2.5. The highest target price for the stock is set by Andrew Uerkwitz from Oppenheimer with price target of $7 and buy recommendation.

GoPro has 53.5 percent institutional ownership, with over 9 percent short interest. Looking at insiders’ transactions, it appears that year to date, insiders have sold 48,168 shares while 60,695 shares were bought during this period.

Over 17 percent of analysts recommend buying shares of GoPro while 50 percent recommends holding and 33 percent recommends selling the stock at this current market price. GoPro has over 900 employees and is up over 120 percent during the last three months of market volatility. Overall, GoPro is down 19 percent year to date. GoPro is one of the top 10 trading stocks on Robinhood platform with over 489,500 people holding onto shares of GoPro.

GoPro published its quarterly results on May 7, 2020 with an adjusted loss of $0.34 per share and revenue of $119.4 million, which indicates 50.81 percent drop year over year in revenue. GoPro manufactures its cameras in China and is very vulnerable to tariffs war between China and the United States. GoPro’s global distribution network was hurt due to pandemic during last quarter and have sold around 700,000 cameras during that period.

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