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

Key Points

• GoPro call-option activity surged: Investors bought 17,486 call options, roughly 300% above the average volume of 4,368 contracts.
• Shares rose 17.5% to about $0.70 amid exceptionally high trading volume, though the stock remains near its 12-month low and has a market capitalization of approximately $130 million.
• Fundamentals and analyst sentiment remain weak: GoPro missed quarterly earnings and revenue estimates, while analysts maintain an average “Sell” rating; institutional investors and hedge funds own about 70.09% of the stock.

GoPro, Inc. (NASDAQ:GPRO - Get Free Report) was the recipient of unusually large options trading activity on Monday. Investors bought 17,486 call options on the stock. This represents an increase of 300% compared to the average volume of 4,368 call options.

GoPro Stock Up 17.5%

GoPro stock traded up $0.11 during midday trading on Monday, reaching $0.70. The stock had a trading volume of 36,869,999 shares, compared to its average volume of 6,266,984. The company has a market capitalization of $130.07 million, a P/E ratio of -0.71 and a beta of 2.42. The company has a current ratio of 0.57, a quick ratio of 0.35 and a debt-to-equity ratio of 0.58. GoPro has a 12 month low of $0.57 and a 12 month high of $3.05. The company has a fifty day moving average price of $0.69 and a two-hundred day moving average price of $0.86.

GoPro (NASDAQ:GPRO - Get Free Report) last issued its earnings results on Monday, August 10th. The company reported ($0.21) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.23). The company had revenue of $104.93 million during the quarter, compared to the consensus estimate of $151.47 million. GoPro had a negative return on equity of 411.41% and a negative net margin of 28.52%. As a group, equities analysts expect that GoPro will post -0.81 EPS for the current fiscal year.

Wall Street Analyst Weigh In

GPRO has been the topic of a number of analyst reports. Weiss Ratings upgraded GoPro from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, July 20th. Wall Street Zen upgraded GoPro from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 23rd. Finally, Zacks Research downgraded shares of GoPro from a "hold" rating to a "strong sell" rating in a report on Friday, August 21st. Two equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the company presently has an average rating of "Sell".

Institutional Investors Weigh In On GoPro

Several institutional investors and hedge funds have recently made changes to their positions in GPRO. Jump Financial LLC acquired a new stake in shares of GoPro in the second quarter worth approximately $25,000. Captrust Financial Advisors boosted its stake in GoPro by 89.6% during the 2nd 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. Caitong International Asset Management Co. Ltd boosted its stake in shares of GoPro by 1,295,800.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 12,959 shares of the company's stock valued at $27,000 after buying an additional 12,958 shares in the last quarter. Jefferies Financial Group Inc. acquired a new stake in GoPro during the 3rd quarter valued at $27,000. Finally, Banco BTG Pactual S.A. acquired a new position in shares of GoPro in the 2nd quarter valued at $27,000. 70.09% of the stock is currently owned by institutional investors and hedge funds.

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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