GPRO Stock Falls to Bottom of Nasdaq on Slashed Guidance

J.P. Morgan Securities cut its price target to $6 in response

by Lillian Currens

Published on Oct 3, 2019 at 9:45 AM
Updated on Jun 24, 2020 at 10:16 AM

Camera concern GoPro Inc (NASDAQ:GPRO) is near the bottom of the Nasdaq today, after the firm slashed its earnings-per-share outlook for the second half of its fiscal year to between 33 cents and 39 cents, compared to its previous forecast between 37 to 49 cents. GoPro put the blame on shipment issues and production delays around its newly launched Hero8 Black cameras, which will be shipped in the fourth quarter, instead of the third as originally planned. The security is down 21.3% at $4.04 in response, trading back near its early September lows. 

In fact, on Sept. 3, the stock bottomed out an an all-time low of $3.62. GPRO was able to take back almost 34% in September -- its best month since 2014 -- but ran into pressure near its 200-day moving average. Now, the shares are set to breach former support at the 20-day for the first time in a month. 

J.P. Morgan Securities has already come in with a price-target cut to $6 from $8, putting the 12-month consensus target price at $5.50 -- a 30% premium to current levels. Most of the brokerage bunch is cautious on GPRO, though, with the majority in coverage calling it a "hold" or worse. 

While short interest has dropped 8.3% in the last two reporting periods, these bears are still firmly in control. The 7.2 million shares currently sold short makes up almost a quarter of the stock's available float, and represents over seven days of trading at GPRO's average pace. 

 


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