GoPro Inc (GPRO) Soar As Value Investors Enter The Stock

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Shares of GoPro Inc (NASDAQ:GPRO) are Up Considerably this afternoon after a week from hell for investors. The stock, which has experienced a deluge of negative news, most recently poor fourth quarter earnings, is down close to 50% in 2016 alone.

Today shares are bouncing back strongly as value investors likely are jumping all over the 8.8 PE ratio that the company now has. It is also possible that GoPro’s (NASDAQ:GPRO) buyback may be kicking in, boosting shares, while also forcing shorts to exit their positions. While things certainly have not been rosey for the company as of late, future prospects do look bright, expecially if they can establish themselves as the premier provider of 360-degree cameras used for filming media for virtual reality. It will be interesting to see if today’s action continues next week or if the downtrend seen over the past month continues once again.

The stock is up 8.27% or $0.81 following the news, hitting $10.59 per share. About 4.08M shares traded hands. GPRO has declined 81.17% since July 1, 2015 and is downtrending. It has underperformed the S&P500 by 72.31%.

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 146.27% above today’s ($10.59) 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 is 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 $1.43 billion. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. It has 8.8 P/E ratio. The Firm offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO.