GoPro (NASDAQ:GPRO) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded GoPro to “strong sell” from “sell,” while Weiss Ratings also maintained a sell-level assessment. MarketBeat data shows the stock has an average analyst rating of “Sell.”
• GoPro shares were trading at $0.59, down 5.8%, near their 52-week low of $0.57. The company’s latest quarterly results missed expectations, with a loss of $0.21 per share versus an expected $0.02 profit and revenue of $104.93 million versus $151.47 million estimated.
• Despite the negative outlook, institutional investors own 70.09% of GoPro and several hedge funds increased their positions. Separately, COO Brian McGee sold 130,631 shares under a pre-arranged trading plan, reducing his stake by 12.12%.

GoPro (NASDAQ:GPRO - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research note issued to investors on Saturday.

Separately, Weiss Ratings raised GoPro from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, July 20th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company has an average rating of "Sell".

GoPro Trading Down 5.8%

Shares of GPRO stock opened at $0.59 on Friday. The firm has a fifty day moving average of $0.73 and a 200-day moving average of $0.90. The stock has a market cap of $109.78 million, a price-to-earnings ratio of -0.60 and a beta of 2.42. GoPro has a 52-week low of $0.57 and a 52-week high of $3.05. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.38 and a current ratio of 0.57.

GoPro (NASDAQ:GPRO - Get Free Report) last issued its earnings results on Monday, August 10th. The company reported ($0.21) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.23). The business had revenue of $104.93 million for the quarter, compared to analyst estimates of $151.47 million. GoPro had a negative net margin of 28.52% and a negative return on equity of 411.41%.

Insider Transactions at GoPro

In related news, COO Brian Mcgee sold 130,631 shares of GoPro stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $0.97, for a total transaction of $126,712.07. Following the completion of the transaction, the chief operating officer directly owned 947,123 shares of the company's stock, valued at $918,709.31. This trade represents a 12.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 18.06% of the stock is owned by corporate insiders.

Institutional Trading of GoPro

Several hedge funds have recently modified their holdings of GPRO. AQR Capital Management LLC raised its stake in shares of GoPro by 957.3% in the first quarter. AQR Capital Management LLC now owns 3,687,711 shares of the company's stock valued at $2,445,000 after acquiring an additional 3,338,941 shares during the last quarter. UBS Group AG grew its position in GoPro by 168.6% during the 4th quarter. UBS Group AG now owns 3,781,516 shares of the company's stock worth $5,332,000 after acquiring an additional 2,373,901 shares during the last quarter. Millennium Management LLC grew its position in GoPro by 111.9% during the 4th quarter. Millennium Management LLC now owns 3,438,671 shares of the company's stock worth $4,849,000 after acquiring an additional 1,815,637 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in GoPro by 16.2% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 7,278,484 shares of the company's stock valued at $10,263,000 after purchasing an additional 1,013,494 shares in the last quarter. Finally, Renaissance Technologies LLC increased its holdings in GoPro by 137.1% during the 1st quarter. Renaissance Technologies LLC now owns 1,625,900 shares of the company's stock valued at $1,252,000 after purchasing an additional 940,300 shares in the last quarter. Institutional investors and hedge funds own 70.09% of the company's stock.

About GoPro

GoPro, Inc NASDAQ: GPRO is an American technology company specializing in the design and manufacture of compact, high-definition cameras and related accessories. Headquartered in San Mateo, California, GoPro's product lineup is centered on its flagship HERO series of action cameras, which combine rugged construction, waterproof housings and advanced imaging capabilities. In addition to the HERO line, the company offers the MAX camera for 360-degree video capture, along with an array of mounts, grips and protective cases to support use in extreme sports, travel and professional video production.

Since its founding in 2002 by Nicholas Woodman, who continues to serve as chief executive officer, GoPro has expanded beyond hardware into software and cloud-based services.

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