GoPro Inc.; Nasdaq: GPRO
Since November 7, 2016 four of the 15 analysts covering GoPro Inc. have downgraded its shares – traded on the Nasdaq under ticker symbol GPRO. Currently two analysts rate it as a “Strong Buy”, ten rate it as a “Hold”, one gives it an “Underperform”, and two have it rated as a “Sell”.
In 2014 GPRO was trading over $90, today it is trading in the $9 handle. GPRO shares have a Short Float figure over 32%. This means that for all the shares typically available to the investing public, over 32% have been borrowed as part of a short-sale which will profit if the shares decline in price. This is a fairly high figure by industry standard.
But the blame does not fall solely on short-sellers. GoPro Inc made an expensive effort to be a deliverer of content. Although they spent a lot of money trying to develop that market, success never materialized and GoPro Inc recently announce it will lay off about 15% of its workforce in an attempt to return to profitability in 2017.
Should GoPro Inc. continue its sales growth (year-on-year increases since 2011) and reverse GPRO EPS losses, shorts could be forced to cover their positions which might send shares of GPRO up rapidly. One must wonder just how much more the bottom is for this beleaguered stock.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
|Last Price a/o 2:48 PM EST||$ 9.02|
|Average Volume||6.19 million|
|Market Cap||$1.1 Billion|
|Shares Outstanding||135.57 million|
|Share Float||100.59 million|
|Short Interest Ratio||5.3|