GoPro Inc (GPRO) Shares Halted After Company Warns on Q4 Revenue and Margins


While shares of GoPro Inc (NASDAQ:GPRO) have been beaten down over the last four months, the news just got worse for the company, whose stock hit new 52-week lows this afternoon. Shares of GoPro Inc (NASDAQ:GPRO) were halted after hours and are expected to begin trading again at 4:40 p.m. ET after the company lowered their guidance for their fourth quarter.

The company now expected to report fourth quarter revenue of around $435 million, well below their prior guidance of $500 to $530 million and analyst estimates of $511.9 milion. Additionally, the company expects margins to come in at between 44.5% and 45.5% as opposed to their prior guidance of 46% for the fourth quarter.

GoPro Inc (NASDAQ:GPRO) has also announced that they will be cutting their workforce by 7% and Entertainment chief/SVP Zander Lurie has resigned from his position. The company will report their Q4 earnings on February 3rd. The stock increased 0.07% or $0.01 during the last trading session, hitting $14.61. About 6.44M shares traded hands. GPRO has declined 75.12% since June 9, 2015 and is downtrending. It has underperformed the S&P500 by 67.64%.

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 $41.16 which is 181.72% above today’s ($14.61) stock price. GoPro Inc was the topic of 43 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Barclays Capital maintained shares on January 8 with a “Overweight” rating. Citigroup maintained shares with a”Buy” rating and a $90 target share price in their report from a September 17. Citigroup downgraded GPRO stock in a recent report from December 11 to a “Neutral” rating. Hilliard Lyons initiated the rating on September 8. Hilliard Lyons has a “Buy” rating and a $48 price target on shares. Finally, Piper Jaffray maintained the stock with a “Underweight” rating in a report they issued on a November 18.

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 $2.00 billion. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. It has 12.15 P/E ratio. The Firm offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO.