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Why Did GoPro Rise ~8% on June 17?

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Nov. 20 2020, Updated 4:30 p.m. ET

Price movement of GoPro

GoPro (GPRO) has a market cap of $1.4 billion. It rose by 8.2% to close at $10.65 per share on June 17, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 3.8%, 21.0%, and -40.9%, respectively, that day. This means that GPRO is trading 5.0% above its 20-day moving average, 3.9% below its 50-day moving average, and 40.4% below its 200-day moving average.

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Related ETF and peers

The Shares Morningstar Small-Cap Growth ETF (JKK) invests 0.21% of its holdings in GoPro. The ETF tracks a market-cap-weighted index of US small-cap growth stocks. The index selects from the 70% to 90% segment of market capitalization based on five factors. The YTD price movement of JKK was -0.45% on June 17, 2016.

The market caps of GoPro’s competitors are as follows:

  • Canon (CAJ): $37.5 billion
  • Sony (SNE): $34.3 billion
  • Best Buy (BBY): $9.6 billion

JPMorgan Chase is positive on GoPro

GoPro rose by more than 8% on June 17, 2016, after JPMorgan reported that GoPro’s second quarter could be promising. It rated the stock as “overweight” and set the price target at $17 per share. TheStreet Ratings rated GoPro as a “sell” with a “D” score.

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Performance of GoPro in fiscal 1Q16

GoPro reported fiscal 1Q16 revenue of $183.5 million, a fall of 49.5% from the $363.1 million in fiscal 1Q15. The company’s gross profit margin fell by 27.9% between fiscals 1Q15 and 1Q16.

In fiscal 1Q16, its net income and EPS (earnings per share) fell to -$107.5 million and -$0.78, respectively, compared with $16.8 million and $0.11 in fiscal 1Q15. Its non-GAAP (generally accepted accounting principles) EPS fell to -$0.63 in fiscal 1Q16 from $0.24 in fiscal 1Q15.

GPRO’s cash and cash equivalents and inventory fell by 11.1% and 25.8%, respectively, between fiscals 4Q15 and 1Q16. In fiscal 1Q16, its current ratio rose to 2.83x and its debt-to-equity ratio fell to 0.37x, compared with 2.82x and 0.43x, respectively, in fiscal 4Q15. The company expects revenue in the range of $1.4 billion to $1.5 billion for fiscal 2016.

For ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.

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