Is Apple (AAPL) Considering a GoPro Inc (GPRO) Acquisition?


Shares of GoPro Inc (NASDAQ:GPRO) are trading up this afternoon after yesterday’s selloff following numerous rumors that the company could be an acquisition target for Apple (NASDAQ:AAPL). While analysts and traders are debating over whether such a transacton would make sense for either company, investors seem to be at least considering the possibility.

GoPro Inc (NASDAQ:GPRO) currently has a market capital of $2.39 billion, a drop in the bucket for the $628 billion Cupertino-based Apple. With 360-degree video certainly the future, especially when considering its use in virtual reality applications, and with Apple constantly working to produce top-of-the-line cameras, such an acquisition certainly doesnt seem out of the questions to us. The stock is up 2.38% or $0.41 following the news, hitting $17.72 per share. About 5.69 million shares traded hands. GPRO has declined 65.08% since May 12, 2015 and is downtrending. It has underperformed the S&P500 by 61.40%.

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 137.92% above today’s ($17.72) 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 worsened, 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 $2.39 billion. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. It has 14.74 P/E ratio. The Firm offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO.