Gopro (GPRO) stock forecast: are we about to see price appreciation?

1:45 pm ET, 31 Oct 2018

GoPro, Inc. (GPRO) shares are trading at $6.58, up 4%. The company is announcing its quarterly earnings results on Thursday after the market close. What's driving  GoPro stock price? What's GPRO stock price forecast?

GoPro develops and sells cameras and other wearable accessories.  Lately, the stock has performed well: it generated a return of 27% in the past six months. The company recently announced that GoPro HERO7 Black has achieved the highest week-one unit sell-thru in the company’s history.

Investors are showing interest in GoPro since they believe that the company will drive strong sales in the second half of 2018. On the other hand, few bearish investors feel that the company will continue to face competition from cheaper Chinese camera companies.

Third-quarter results will be released after market close on November 01, 2018.  Analysts expect the company to earn -$0.06 per share on revenue of $272.27 million. The company beat analysts’ estimates in the previous two quarters.

What is the sentiment towards the GPRO stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Over the last month, GoPro, Inc. (GPRO) returned -11.71%. 

GoPro, Inc. (GPRO) forward P/E ratio is 38.06, and it’s high compared to its industry peers’ P/E ratios.

GoPro, Inc. (GPRO) short share of float is 28.39%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

GoPro, Inc. (GPRO) average analyst price target ($6.24) is 2.13% above its current price ($6.11).

For the latest price and information on GoPro, Inc., please visit Finstead and search for "GPRO price" or "GPRO news".

Is GoPro Falling Apart?

2:26 pm ET, 08 Jan 2018

gopro

GoPro continues to struggle, and its founder and CEO is taking a pay cut. 

Nick Woodman plans to receive $1 from the company in 2018. He used to earn a million a year, but now, he's down with the stock market. This million includes both salary and bonuses. 

GoPro also says that it is going to reduce its labor force and get out of the drone business.  As the drone business is a competitive one, the Karma drone is the last drone that GoPro will make.

The 2016 $799 Karma drone proved to be too expensive for what it could do. It had to be pulled in November of that year after one failed, and reviewers compared it unfavorably to drones by rivals like DJI. GoPro lost $373 million in 2016 and saw only a slight gain the next year. 

The company also blamed the drone failure on the new regulations in the US and Europe. 

GoPro was once popular with those sporting its wearable cameras, but it has not risen above niche appeal. During the holidays, it had to slash prices on a number of its products. 

Now, GoPro has hired JP Morgan to sell it. The CEO said today he would consider partnership or sale. The company is cutting more than 20% of its workforce, and shares have already fallen 20 percent today after weak guidance. 

Over the last year, GPRO returned -19.79%. This return is higher than Photographic Equipment & Supplies sector (-26.81%), but lower than Consumer Goods industry (10.29%) and S&P 500 (20.90%) returns.

Is this the end of GoPro?

GoPro, Inc. (GPRO) Stock Guide

Updated at: 11:00 pm ET, 17 Sep 2020

Before we start: if you're looking for GPRO stock price, you can quickly find it out by visiting Finny and typing "GPRO quote". If you're looking for a quick scoop on GPRO stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "GPRO". You'll get all this info in one place. Or you can just type "GPRO news" to get the latest stock news.

Looking to buy or sell GoPro, Inc. (GPRO)? Interested in getting the full scoop on GPRO, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this GPRO stock guide, we'll address key questions about GPRO, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are GPRO earnings?
2. What is GPRO stock forecast (i.e., prediction)?
3. GPRO buy or sell? What is GPRO Finny Score?
4. What are the reasons to buy GPRO? Why should I buy GPRO stock?
5. What are the reasons to sell GPRO? Why should I sell GPRO stock?
6. What are GPRO key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are GPRO earnings?

GPRO trailing 12-month earnings per share (EPS) is -$0.64.

Analyst Predictions

2. What is GPRO stock forecast (i.e., prediction)?

Based on GPRO analyst price targets, GPRO stock forecast is $4.83 (for a year from now). That means the average analyst price target for GPRO stock is $4.83. The prediction is based on 13 analyst estimates.

The low price target for GPRO is $2.50, while the high price target is $8.00.

GPRO analyst rating is Hold.

Analysis

3. GPRO buy or sell? What is GPRO Finny Score?

#{finnyScore:64}Our quantitative analysis shows 7 reasons to buy and 4 reasons to sell GPRO, resulting in Finny Score of 64.

4. What are the reasons to buy GPRO? Why should I buy GPRO stock?

Here are the reasons to buy GPRO stock:

  • In September 2017, GoPro released the latest upgraded version of its wearable cameras – the HERO6. GoPro’s latest action camera is powered by GoPro's custom- designed GP1 processor. HERO6 boasts stunning 4K60 and 1080p240 video and the most advanced video stabilization ever achieved in a GoPro.
  • GoPro has been aiming towards transforming itself from the ‘camera maker’ to ‘content maker’, and has taken significant steps to diversify into higher-margin businesses including video editing and virtual reality. The company is developing various types of software solutions and hardware to curtail the complexity of managing, editing and sharing contents on different media platforms. The company has made significant improvements to its editing software, on the back of its recent acquisition of two of the most popular mobile editing apps, Replay (which has been rebranded as Quik) and Splice, which are experiencing robust adoption.
  • After some painful quarters of booking charges related toinventory write downs, the company has now eliminated entry-level products, and has a clean distribution channel. Further, last year, GoPro cut 15% of its total workforce as part of a broader, company-wide restructuring effort, which included shutting down its entertainment business to help channelize resources to more profitable areas. Again, the company is letting go of around 250 of its staff and will reducefounder and CEO Woodman’s salary to $1, in order to curtail operating expenses further.
  • GoPro is taking steps to solidify its position in the burgeoning virtual reality (VR) market. It recently announced additional software advancements with its new GoPro VR app. In fact, GoPro now offers one of the world's most comprehensive platforms for capturing, stitching, sharing and enjoying VR content, through its new VR capture rigs, Omni (a six-camera spherical rig for capturing content for VR) and Odyssey and stitching software, Kolor.
  • GPRO profitability is improving. The YoY profit margin change was 19.84 percentage points. See GPRO profitability chart.
  • GPRO forward P/E ratio is 8.30, which is low compared to its industry peers’ P/E ratios. See GPRO forward P/E ratio chart.
  • GPRO Price/Sales ratio is 0.79, which is low compared to its industry peers’ P/S ratios. See GPRO forward Price/Sales ratio chart.
  • GPRO PEG ratio (P/E adjusted for growth) is 45.90, which is low compared to its industry peers’ PEG ratios. See GPRO PEG chart.
  • GPRO average analyst price target ($4.83) is above its current price ($4.02). See GPRO price target chart.
  • GPRO cash to debt ratio is 0.32, higher than the average industry (0.15) and sector (0.17) cash to debt ratio. See GPRO cash to debt chart.
  • GPRO Enterprise Value/Revenue multiple is 0.94, which is low compared to its industry peers’ Enterprise Value/Revenue multiples. See GPRO Enterprise Value/Revenue chart.

5. What are the reasons to sell GPRO? Why should I sell GPRO stock?

Let's look at the reasons to sell GPRO stock (i.e., the bear case):

  • The company is throwing in the towel on its drone business and is slashing 20% of its workforce after a sub-standard holiday quarter. Karma was facing mounting margin challenges in a tremendously competitive aerial market, which was dominated by the likes of DJI Technology and AeroVironment. A hostile regulatory environment in Europe and the United States further reduced Karma’s total addressable market and made its future untenable.
  • GoPro operates in a highly competitive cameras and camcorders market. The market has an extensive presence of well-known camera makers like Canon, Nikon and Olympus. Additionally, many electronics giants like Sony, Samsung and Panasonic have penetrated into capture devices market, thereby pushing the level of competition a notch higher.
  • GoPro reaps majority of its revenues from capture devices and, hence, faces a high product concentration risk. Moreover, the company has been witnessing huge competition between its new and old products. These persistent demand issues could drag down the company’s top line growth in coming times, even as it strives to expand its user base and find explore revenue streams.
  • In order to maintain its dominant market share, the company continues to spend a significant amount on research & development (R&D), which can put pressure on margins. Although the company is utilizing R&D more efficiently, increasing competition has put the pricing under pressure, as evidenced by the company’s recent pricing actions.
  • GoPro has huge international market exposure, and China remains one of the fastest-growing regions for GoPro. However, amid the ongoing problems in the Chinese market, the company may face operational problems in the future. Additionally, GoPro’s supply chain partners have operations in several diverse countries like China, Brazil and the Netherlands.
  • GPRO quarterly revenue growth was -54.10%, lower than the industry and sector average revenue growth (-0.12% and 0.89%, respectively). See GPRO revenue growth chart.
  • GPRO Price/Book ratio is 5.13, which is high compared to its industry peers’ P/B ratios. See GPRO forward Price/Book ratio chart.
  • GPRO short share of float is 8.11%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See GPRO short share of float chart.
  • GPRO short interest (days to cover the shorts) ratio is 4.19. The stock garners more short interest than the average industry, sector or S&P 500 stock. See GPRO short interest ratio chart.

Key Stats

6. What are GPRO key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for GPRO:

Metrics GPRO
Price $4.30
Average Price Target / Upside $4.83 / 12.20%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Consumer Electronics
Sector Technology
Number of Employees 891
Market Cap $720.48M
Forward P/E Ratio 8.30
Price/Book Ratio 0.79
Revenue (TTM) $913.16M
YoY Quarterly Revenue Growth -54.10%
Profit Margin -10.24%

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