The HERO7 Black saw the best week-one sales in company history
The shares of GoPro Inc (NASDAQ:GPRO) were higher out of the gate this morning, after the company touted a strong week of sales for its HERO7 Black. In fact, the new camera "achieved the highest week-one retail unit sell-thru" in the company's history, and GoPro also said social media engagement surged 80% from last year's launch. After peaking at $6.67 in early trading, GPRO shares reversed lower amid broad-market headwinds, and were last seen down 0.5% at $6.23.
Since touching a record low of $4.42 on April 4, GoPro stock has climbed roughly 41%, with pullbacks contained by its 100-day moving average -- a trendline being tested today. In fact, the equity touched a multi-month high of $7.60 in late September following upbeat analyst attention -- and just ahead of the new camera's release -- but subsequently lost steam, possibly amid false rumors of a HERO7 recall.
While the HERO7 Black has received mostly positive reviews from techies, GPRO shares remain unloved on Wall Street. Just one analysts deems the security worthy of a "buy" or better rating, compared to seven issuing tepid "hold" or "sell" ratings. Likewise, the consensus 12-month price target of $6.58 represents a slim premium to the stock's current perch. Should more analysts upgrade GPRO or lift their price targets in the wake of a strong HERO7 following, the shares could resume their recent uptrend.
A short squeeze could also add fuel to the fire. Short interest represents nearly a quarter of GPRO's total available float, and would take more than 12 sessions to buy back, at the security's average daily trading volume.
Traders looking to speculate on GoPro stock's short-term trajectory can pick up options for a relative steal. The stock's Schaeffer's Volatility Index (SVI) of 64% sits in the 18th percentile of its annual range, indicating near-term options are pricing in relatively low volatility expectations for GPRO at the moment.