Is GoPro Trading at a Discount to Analysts’ Target Estimates?

Stock returns for GoPro

GoPro (GPRO) has returned -27% in the trailing 12 months, 3.2% in the trailing month, and 7.6% in the trailing five days. The stock fell 50% in 2016 and 13% in 2017, and it’s fallen 23.5% since the start of 2018.

Peer consumer tech companies Garmin (GRMN), Fitbit (FIT), Canon (CAJ), and Fossil (FOSL) have returned 15%, -11%, 24%, and -18%, respectively, in the trailing 12 months.

Is GoPro Trading at a Discount to Analysts’ Target Estimates?

Analysts’ recommendations

Of the 15 analysts tracking GoPro, one has recommended a “buy,” 12 have recommended “holds,” and two have recommended “sells” on the stock. Analysts’ 12-month average price target for GoPro is $5.67 with a median target estimate of $5.00. GoPro is now trading at a premium of 14% to analysts’ median estimate despite a substantial stock price reduction over the last 30 months.

Moving averages

On March 7, 2018, GoPro closed the trading day at $5.79. Based on that price, the stock’s moving averages are as follows:

  • 22.1% below its 100-day moving average of $7.43
  • 5% below its 50-day moving average of $6.09
  • 4.4% above its 20-day moving average of $5.55

GoPro is currently trading 15% above its 52-week low of $5.04 and 51% below its 52-week high of $11.89.

Relative strength and moving average convergence divergence

GoPro’s 14-day MACD (moving average convergence divergence) is -0.19. 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 has a 14-day RSI (relative strength index) score of 55, which shows that the stock is trading close to overbought territory. An RSI of above 70 indicates that a stock has been overbought, and an RSI of below 30 suggests that a stock has been oversold.