GoPro Inc (GPRO) Stock Jump 6% on Microsoft Licensing Deal

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Shares of GoPro Inc (NASDAQ:GPRO) are up big in after-hours trading this weekend, after the company agreed to a patent licensing deal with Microsoft (NASDAQ:MSFT) late Friday. While details of the deal are sparse, the agreement covers the use by Microsoft of certain file storage and system technologies.

“This agreement with GoPro shows the incredible breadth of technology sharing enabled through patent transactions,” Microsoft Technology Licensing president Nick Psyhogeos said in a statement. “Microsoft’s licensing of personal wearable technologies is seeing strong demand as we partner with companies from all industries to optimize solutions for their customers around the globe.”

This is great news for shareholders of GoPro Inc (NASDAQ:GPRO), after the stock has taken quite a beating over the past few months. Perhaps this will put a hault to some of the bearishness on the stock. The stock increased 1.84% or $0.18 on February 5, hitting $9.96. About 8.99M shares traded hands or up 1.12% from the average. GPRO has declined 80.75% since July 2, 2015 and is currently downtrending. It has underperformed the S&P500 by 73.45%.

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 161.85% above today’s ($9.96) 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 dropped, 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 $1.39 billion. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. It has 8.28 P/E ratio. The Firm offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO.