Is GoPro’s (GPRO) Peroscope Integration a Big Deal?


While shares of GoPro Inc (NASDAQ:GPRO) have had a terrible start to 2016, recent news that they will integrate with Periscope, the live streaming social media application, could be just what the doctor ordered.

Trading at a PE ratio of just under 9, there is no denying that shares of GoPro Inc (NASDAQ:GPRO) are being deeply discounted on fears that the company will lose business thanks to the more powerful cameras that are being integrated into smartphones. With that said, GoPro Inc (NASDAQ:GPRO) seems to think outside the box, and the integration with Periscope seems to be proof of such. Users will now be able to live stream all sorts of life events and videos without the need for a smartphone camera. Additionally, GoPro cameras can go places that most cameras can’t. For example scuba diving or tethered to drones.

In our opinion shares of GoPro Inc (NASDAQ:GPRO) have been drastically oversold, as they have numerous growth engines ahead. This integration with Periscope is a great new avenue to entice users to buy their cameras. The stock is down 1.01% or $0.11 following the news, hitting $10.77 per share. Approximately 3.25 million shares traded hands. GPRO shares have declined 80.19% since June 22, 2015 and are currently downtrending. It has underperformed the S&P500 by 71.32%.

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 142.15% above today’s ($10.77) 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 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 $1.49 billion. Additionally, the Company develops and provides desktop editing software and mobile applications for free to consumers. It has 8.96 P/E ratio. The Firm offers HERO line of capture devices, which include HERO2, HERO3 camera, the HERO3+ camera and the HERO4 and HERO.