GoPro Inc (GPRO) Soars as Oppenheimer Calls a Bottom

GoPro Inc (GPRO) blew up on Monday, and is adding to its impressive week-to-date performance this morning

by Alex Eppstein

Published on Jul 13, 2016 at 10:21 AM
Updated on Jun 24, 2020 at 10:16 AM

GoPro Inc (NASDAQ:GPRO) is started fast out of the gate -- jumping more than 7% -- and was last seen up 2.1% at $12.72. This comes just two days after the tech stock exploded over 13% -- its best single-day percentage gain since mid-April. While Monday's catalyst was unclear, today's upside can be traced back to positive brokerage attention.

Specifically, Oppenheimer thinks GPRO stock has established its near-term bottom, and expects tailwinds over the next three months amid improving investor sentiment and a major product launch. Of course, not everyone on Wall Street has warmed to the shares just yet -- perhaps due to the fact that GPRO has lost over three-quarters of its value year-over-year.

For instance, sticking with the brokerage bunch, just six analysts recommend buying the stock, compared to nine tepid "holds" and two "strong sells." What's more, GPRO's average 12-month price target of $12.05 sits represents a discount to present levels.

This skepticism is seen elsewhere. A lofty 31.8% of GPRO's float is sold short, representing six times the stock's average trading daily levels. Meanwhile, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has amassed a 50-day put/call volume ratio of 0.74 -- in the put-skewed 92nd annual percentile. Long story short, options traders have been placing bearish bets over bullish at a near-extreme rate.

In early trading, GoPro Inc (NASDAQ:GPRO) options are flying off the shelves at quadruple the expected intraday clip. Calls account for the top three strikes, with short-term traders possibly buying to open contracts at the July 11.50 and 12.50 strikes, anticipating more end-of-week upside.

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