GoPro Flirting With Lows on China Production Move

The camera maker has said it would be proactive on tariff concerns

Digital Content Manager
Dec 10, 2018 at 3:23 PM
facebook twitter linkedin

Shares of GoPro Inc (NASDAQ:GPRO) traded mostly lower today, on news the company will be pulling production on cameras shipped to the U.S. out of China. Despite the 90-day trade truce between China and the U.S., the camera manufacturer has previously noted plans to be proactive amid increasing tariff concerns. At last check, GPRO stock was down 0.5% to trade at $4.94, though it briefly moved higher in afternoon trading.

GoPro stock is down 35% year-to-date, and has been in a channel of lower highs and lows since early October. The shares today fell as low as $4.76, within striking distance of their April 4 low of $4.42.

Analysts are wary of the camera manufacturer, with just one "strong buy" rating, compared to three "holds" and two "sells." What's more, the consensus 12-month price target of $6.93 still stands at a 40% premium to today's price. 

Several short sellers are likely cheering, too, with short interest up 3.4% in the last two reporting periods, accounting for nearly 35 million shares, or 30.9% or the stock's available float.  It would take over seven days, at GPRO's average daily trading volume, to repurchase all of their pessimistic positions.



These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners