GoPro Inc (NASDAQ:GPRO) shares are up big as the market opens today. The stock, which is down more than 65% since August seems to finally be coming alive to start off 2016. As the company plans for a big Consumer Electronics Show appearance, recent comments made by JPMorgan regarding their Hero 4 camera sales this holiday season, may be the driving force behind today’s early runup in price.
“We think GoPro Hero 4 Black and Silver models have sold-through well during the holiday season based on our channel checks, which suggests 4Q results may come in better than initially feared,” said Paul Coster, and analyst at JPMorgan.
Coster also believes that the company’s R&D expenditures in 2016 will pay off with even greater innovations. There are numerous areas in which GoPro Inc (NASDAQ:GPRO) can expand including that of drone technology, which will be on display at CES this week, as well as 360 degree video used within virtual reality systems. There is also a large short position in this stock, so any major run could be extended by those covering these short positions.
The stock is currently trading higher by 7.54% or $1.41 following the positive news, hitting $20.1 per share at the time of us publishing this article. About 459,454 shares traded hands. GPRO has declined 68.06% since June 1, 2015 and is downtrending. It has underperformed the S&P500 by 65.05%.
From a total of 14 analysts covering GoPro Inc (NASDAQ:GPRO) stock, 8 rate it a “Buy”, 3 a “Sell”, and 3 a “Hold”. This means that 57% of the ratings are positive. The highest target price is $90 while the lowest target price is $12. The mean of all analyst targets is $42.16 which is 109.75% above today’s ($20.1) stock price. GoPro Inc was the topic of 42 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Morgan Stanley downgraded shares on December 14 to a “Underweight” rating. Barclays Capital maintained shares with a”Overweight” rating and a $40 target share price in their report from an October 29. Robert W. Baird downgraded GPRO stock in a recent report from December 4 to a “Neutral” rating. Citigroup maintained the rating on September 17. Citigroup has a “Buy” rating and a $90 price target on shares. Finally, Northland Capital maintained the stock with a “Outperform” rating in a report they issued on an October 29.
The institutional sentiment decreased to 1.46 in Q2 2015. It’s down 0.25, from 1.71 in 2015Q2. The ratio turned negative, as 70 funds sold all their GoPro Inc shares they owned while 42 reduced their positions. 65 funds bought stakes while 99 increased their total positions. Institutions now own 43.04 million shares which is 14.87% more than the previous share count of 37.46 million in 2015Q2.
Sageview Capital Lp holds 20.01% of its total portfolio in GoPro Inc, equating to 1.70 million shares. Point72 Asia (Hong Kong) Ltd owns 30,000 shares representing 1.39% of their total US portfolio. Moreover, Mizuho Securities Usa Inc. has 1% of their total portfolio invested in the company, equating to 123,700 shares. The United Kingdom-based Old Mutual Global Investors (Uk) Ltd. has a total of 0.93% of their portfolio invested in the stock. Voloridge Investment Management Llc, a Florida-based fund reported 439,249 shares owned.
GoPro, Inc. produces mountable and wearable cameras and accessories, which the Company refers to as capture devices. The company has a market cap of $2.76 billion. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. It has 16.71 P/E ratio. The Firm offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO.