Is GoPro Trading at a Discount to Analysts’ Estimates in January?

Stock returns

GoPro (GPRO) has generated returns of -13.1% in the trailing-12-month period, -21% in the trailing-one-month period, and -3% in the trailing-five-day period. The stock fell 50% in 2016 and 13% in 2017, and it’s fallen 16% since the start of 2018.

Among GoPro’s technology (QQQ) peers, Canon (CAJ) and Garmin (GRMN) have generated returns of 27% and 34%, respectively, in the trailing-12-month period.

Is GoPro Trading at a Discount to Analysts’ Estimates in January?

At the end of January 16, 2018, GoPro closed trading at $6.36, 26.2% higher than its 52-week low of $5.04 and 46.5% lower than its 52-week high of $11.89.

Analysts’ recommendations

Of the 13 analysts tracking GoPro, one has given the stock a “buy” recommendation, and ten have recommended “holds.” Two analysts have recommended “sells” on the stock. Analysts’ consensus price target for GoPro stock is $7.56 with a median target estimate of $7. GoPro is now trading at a discount of 10% to the median analyst estimate.

Moving averages

GoPro closed the trading day at $6.36 on January 16. Based on this price, the stock’s moving averages are as follows:

  • 29.6% below its 100-day moving average of $9.04
  • 20.3% below its 50-day moving average of $7.98
  • 13.1% below its 20-day moving average of $7.32

RSI and MACD

GoPro’s 14-day MACD (moving average convergence divergence) is -0.44. A stock’s MACD is the difference between its short-term and long-term moving averages. GoPro’s negative MACD indicates a downward trading pattern.

GoPro also has a 14-day RSI (relative strength index) score of 18, which shows that the stock is trading in oversold territory. If a stock’s RSI is above 70, it indicates that the stock has been overbought. An RSI figure of below 30 suggests that a stock has been oversold.