It’s been one big disaster if you are an investor of GoPro Inc (NASDAQ:GPRO). After the company warned the market last Wednesday that they would miss their fourth quarter earnings substantially, the stock has been in a free fall. Shares are down approximately 30% in the last three trading days alone and investors have begun to worry about the company’s growth prospects moving forward, not to mention the general downturn in the market over the last couple of weeks hasn’t helped matters much either.
Since the start of 2016, the stock is down over 40% and traded as high as $20 just a couple of weeks ago. While things certainly don’t look great for GoPro Inc (NASDAQ:GPRO) in the short term, the company does have several areas in which growth is very real and very possible. One such area is the company’s 360 degree cameras which should be a major player as the virtual reality space heats up. It’s especially important to note that it will be nearly impossible for smartphones to compete in this segment of the market, giving GoPro Inc (NASDAQ:GPRO) a pretty open market.
Other areas of growth could be the drone camera segment of the market. Although it may take 12-24 months before these areas really heat up, if the company plays its card correctly, 2017 and 2018 could be stellar years from a growth perspective. With a PE ratio around 9 and a market cap of just $1.5 billion, they could also be a pretty solid acquisition target. The stock is down 8.33% or $0.95 following the news, hitting $10.51 per share. Approximately 6.33 million shares traded hands. GPRO shares have declined 80.05% since June 12, 2015 and are currently downtrending. It has underperformed the S&P500 by 71.18%.
From a total of 17 analysts covering GoPro Inc (NASDAQ:GPRO) stock, 8 rate it a “Buy”, 3 a “Sell”, and 6 a “Hold”. This means that 47% of the ratings are positive. The highest target price is $90 while the lowest target price is $9.0. The mean of all analyst targets is $26.08 which is 148.14% above today’s ($10.51) stock price. GoPro Inc was the topic of 56 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Barclays Capital downgraded shares on January 14 to a “Equal-Weight” rating. Sterne Agee CRT maintained shares with a”Buy” rating and a $21 target share price in their report from a January 14. JP Morgan maintained GPRO stock in a recent report from January 14 with a “Overweight” rating. Raymond James maintained the rating on January 14. Raymond James has a “Outperform” rating and a $30 price target on shares. Finally, Northland Capital maintained the stock with a “Outperform” rating in a report they issued on a January 14.
The institutional sentiment decreased to 1.46 in Q2 2015. It’s down 0.25, from 1.71 in 2015Q2. The ratio dived, 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 $1.53 billion. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. It has 8.74 P/E ratio. The Firm offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO.