Zacks Investment Research Lowers GoPro (NASDAQ:GPRO) to Hold

Zacks Investment Research downgraded shares of GoPro (NASDAQ:GPRO) from a buy rating to a hold rating in a research note released on Wednesday, Zacks.com reports. They currently have $5.50 price target on the stock. According to Zacks, “GoPro intends to expand its footprint in emerging markets and is focused on […]

Zacks Investment Research downgraded shares of GoPro (NASDAQ:GPRO) from a buy rating to a hold rating in a research note released on Wednesday, Zacks.com reports. They currently have $5.50 price target on the stock.

According to Zacks, “GoPro intends to expand its footprint in emerging markets and is focused on scaling its CRM efforts. The action video camera maker aims to translate the business momentum and controlled cost into growth and profitability. GoPro is well poised to benefit from a solid portfolio and direct-to-consumer operating framework with a Plus subscription service. It has sold large volumes of HERO9 Black flagship cameras. However, the company spends a considerable amount on R&D, which hampers margins. It generates the majority of revenues from capture devices and is, thus, exposed to product concentration risk. The COVID-19-induced market downturn might hurt the top line in the upcoming quarters. Highly competitive camcorder market is another headwind. GoPro’s market share has been threatened by lower-cost alternatives from established industry players.”

A number of other analysts also recently commented on GPRO. Wedbush restated a neutral rating and set a $5.00 price objective on shares of GoPro in a report on Monday, August 3rd. JPMorgan Chase & Co. started coverage on GoPro in a report on Monday, June 29th. They set a hold rating for the company. Morgan Stanley upped their price target on shares of GoPro from $2.50 to $3.80 and gave the stock an underweight rating in a research report on Friday, August 7th. Oppenheimer reaffirmed a buy rating and set a $7.00 price target on shares of GoPro in a research report on Tuesday, July 7th. Finally, BidaskClub raised shares of GoPro from a hold rating to a buy rating in a research report on Tuesday, September 29th. Two analysts have rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $4.76.

GPRO stock opened at $6.18 on Wednesday. The company has a market cap of $975.38 million, a price-to-earnings ratio of -9.81 and a beta of 1.16. The company has a quick ratio of 0.90, a current ratio of 1.65 and a debt-to-equity ratio of 1.17. The business has a fifty day simple moving average of $4.42 and a 200-day simple moving average of $4.17. GoPro has a 52 week low of $2.00 and a 52 week high of $6.65.

GoPro (NASDAQ:GPRO) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.20) EPS for the quarter, topping analysts’ consensus estimates of ($0.25) by $0.05. The business had revenue of $134.25 million during the quarter, compared to the consensus estimate of $109.03 million. GoPro had a negative return on equity of 38.72% and a negative net margin of 10.24%. The business’s revenue for the quarter was down 54.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.03 EPS. As a group, analysts expect that GoPro will post -0.19 earnings per share for the current fiscal year.

Institutional investors have recently made changes to their positions in the stock. Fairhaven Wealth Management LLC acquired a new position in GoPro in the 2nd quarter worth approximately $57,000. US Bancorp DE lifted its position in GoPro by 66.2% in the 1st quarter. US Bancorp DE now owns 13,457 shares of the company’s stock worth $35,000 after buying an additional 5,361 shares in the last quarter. Castle Rock Wealth Management LLC lifted its position in GoPro by 26.1% in the 1st quarter. Castle Rock Wealth Management LLC now owns 14,500 shares of the company’s stock worth $55,000 after buying an additional 3,000 shares in the last quarter. Schonfeld Strategic Advisors LLC purchased a new stake in GoPro in the 2nd quarter worth approximately $73,000. Finally, ProShare Advisors LLC purchased a new stake in GoPro in the 2nd quarter worth approximately $84,000. 45.68% of the stock is owned by hedge funds and other institutional investors.

GoPro Company Profile

GoPro, Inc develops and sells cameras, drones, and mountable and wearable accessories in the United States and internationally. The company offers HERO7, a cloud-connected line of camera; Fusion, a waterproof spherical camera; GoPro Plus, a cloud-based storage solution that enables subscribers to access, edit, and share content; Quik, a mobile editing app, as well as desktop app for editing options for power users; GoPro App, a mobile app that allows users to preview and play back photos and videos, control GoPro cameras, and share content; and Karma Grip, a handheld or body-mountable camera stabilizer that capture zero-shake smooth video.

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