Stock Traders Buy Large Volume of Call Options on GoPro (NASDAQ:GPRO)

Key Points

• GoPro experienced a significant increase in call options trading, with 112,910 options purchased, marking a 1,525% increase from the usual average of 6,949.
• The stock price of GoPro rose 31.8% during midday trading, reaching $1.5950, with a trading volume that far exceeded its average.
• Insider trading activity included the sale of 150,043 shares by EVP Brian McGee, representing a 16.13% decrease in his ownership stake.

GoPro, Inc. (NASDAQ:GPRO - Get Free Report) was the target of some unusual options trading on Monday. Investors bought 112,910 call options on the stock. Thisrepresentsanincreaseof1,525% compared to the average volume of 6,949 call options.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Wedbush reaffirmed a "neutral" rating and issued a $0.75 price target (down from $1.00) on shares of GoPro in a research note on Tuesday, May 13th. Wall Street Zen downgraded GoPro from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Finally, Morgan Stanley reaffirmed an "underweight" rating on shares of GoPro in a research report on Tuesday, August 12th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $0.75.

GoPro Stock Down 6.0%

NASDAQ:GPRO traded down $0.10 during trading hours on Friday, hitting $1.56. 5,799,095 shares of the company traded hands, compared to its average volume of 8,827,197. The firm's 50-day simple moving average is $1.14 and its 200-day simple moving average is $0.84. GoPro has a one year low of $0.40 and a one year high of $2.37. The company has a market cap of $246.76 million, a PE ratio of -2.26 and a beta of 1.40.

Insiders Place Their Bets

In other news, EVP Brian Mcgee sold 150,043 shares of the company's stock in a transaction on Wednesday, August 20th. The shares were sold at an average price of $1.24, for a total value of $186,053.32. Following the sale, the executive vice president directly owned 779,974 shares of the company's stock, valued at approximately $967,167.76. This represents a 16.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 18.38% of the company's stock.

Hedge Funds Weigh In On GoPro

A number of hedge funds and other institutional investors have recently made changes to their positions in GPRO. Renaissance Technologies LLC grew its stake in shares of GoPro by 14.4% during the 4th quarter. Renaissance Technologies LLC now owns 1,310,400 shares of the company's stock worth $1,428,000 after acquiring an additional 164,600 shares during the period. GSA Capital Partners LLP lifted its holdings in GoPro by 99.5% during the first quarter. GSA Capital Partners LLP now owns 1,723,421 shares of the company's stock valued at $1,142,000 after purchasing an additional 859,677 shares during the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in GoPro during the first quarter valued at about $50,000. MetLife Investment Management LLC boosted its position in GoPro by 90.4% during the fourth quarter. MetLife Investment Management LLC now owns 36,134 shares of the company's stock worth $39,000 after purchasing an additional 17,158 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its stake in shares of GoPro by 59.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 284,835 shares of the company's stock worth $311,000 after purchasing an additional 106,553 shares in the last quarter. 70.09% of the stock is owned by hedge funds and other institutional investors.

GoPro Company Profile

GoPro, Inc develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera.