Why Analysts May Hold the Key to the Next GoPro Inc (GPRO) Low

GoPro Inc (GPRO) almost hit a record low earlier

Sep 29, 2015 at 10:50 AM
facebook X logo linkedin


GoPro Inc (NASDAQ:GPRO) is currently 2.9% higher at $30.54, but earlier this morning touched an annual low of $28.90. In fact, the stock was just a stone's throw from its record low of $28.65, notched on its first day of trading in June 2014. As we mentioned late last week, there are plenty of bearish traders counting on continued struggles for the action camera maker's shares.

Specifically, short interest has been on the rise. Over the past two reporting periods, short interest on GPRO more than doubled, and now represents close to one-third of its total float. This pessimism stands in stark contrast to the bullish holdouts in brokerage land. Despite the stock's chronic underperformance, nine of 13 analysts still consider GPRO a "buy" or better, with not a single "sell" opinion to be found. What's more, the security's consensus 12-month price target of $70 more than doubles current levels. All things considered, the shares could be vulnerable to downgrades and/or price-target reductions -- which may pressure them to even lower lows.

In the options pits, sentiment appears to be more mixed. The equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.59 ranks in the middling 51st annual percentile -- suggesting option traders are buying to open puts and calls at around their typical rates. In today's action, though, GPRO puts are crossing at twice the normal rate and outstripping calls by a roughly 5-to-4 count.

As alluded to, GoPro Inc (NASDAQ:GPRO) has been getting roughed up on the charts for quite some time. Year-to-date, the shares have surrendered over half their value, and they've also underperformed the broader S&P 500 Index (SPX) by 47 percentage points over the last two months.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI