Investors Purchase High Volume of Call Options on GoPro (NASDAQ:GPRO)

Key Points

• GoPro saw unusually heavy call-option activity on Tuesday, with 9,261 call options purchased—about 64% above its typical daily volume.
• GoPro’s stock traded around $0.76, near its 52-week low, after the company missed quarterly earnings and revenue estimates. Shares have a consensus “Sell” rating from analysts.
• COO Brian McGee sold 130,631 shares under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 12.12%; institutional investors own 70.09% of the company.

GoPro, Inc. (NASDAQ:GPRO - Get Free Report) was the target of unusually large options trading activity on Tuesday. Traders bought 9,261 call options on the stock. This is an increase of approximately 64% compared to the typical daily volume of 5,661 call options.

Insiders Place Their Bets

In other GoPro news, COO Brian Mcgee sold 130,631 shares of the firm's stock in a transaction that occurred on 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 owned 947,123 shares of the company's stock, valued at approximately $918,709.31. This trade represents a 12.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 18.06% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Jump Financial LLC purchased a new position in GoPro during the 2nd quarter valued at $25,000. Captrust Financial Advisors increased its stake in GoPro by 89.6% in the second quarter. Captrust Financial Advisors now owns 33,041 shares of the company's stock worth $25,000 after purchasing an additional 15,618 shares during the period. Jefferies Financial Group Inc. bought a new stake in shares of GoPro during the third quarter worth $27,000. Caitong International Asset Management Co. Ltd lifted its position in shares of GoPro by 1,295,800.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 12,959 shares of the company's stock worth $27,000 after purchasing an additional 12,958 shares during the last quarter. Finally, Banco BTG Pactual S.A. purchased a new stake in shares of GoPro during the second quarter valued at $27,000. Institutional investors own 70.09% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on GPRO. Wall Street Zen cut shares of GoPro from a "hold" rating to a "sell" rating in a report on Saturday, May 16th. Weiss Ratings raised shares of GoPro from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, July 20th. Two investment analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has a consensus rating of "Sell".

GoPro Stock Performance

NASDAQ:GPRO traded down $0.00 during mid-day trading on Tuesday, hitting $0.76. 1,974,487 shares of the company traded hands, compared to its average volume of 5,936,536. The stock's fifty day moving average price is $0.81 and its 200-day moving average price is $0.94. GoPro has a one year low of $0.59 and a one year high of $3.05. The company has a quick ratio of 0.38, a current ratio of 0.58 and a debt-to-equity ratio of 0.58. The firm has a market cap of $130.62 million, a price-to-earnings ratio of -0.96 and a beta of 2.42.

GoPro (NASDAQ:GPRO - Get Free Report) last released its quarterly earnings data on Monday, May 11th. The company reported ($0.35) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.32). GoPro had a negative return on equity of 161.44% and a negative net margin of 20.70%.The business had revenue of $99.07 million during the quarter, compared to the consensus estimate of $137.54 million.

GoPro Company Profile

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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