Trade-Ideas LLC identified

GoPro

(

GPRO

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified GoPro as such a stock due to the following factors:

  • GPRO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $102.3 million.
  • GPRO has traded 285,326 shares today.
  • GPRO is down 3.1% today.
  • GPRO was up 12.5% yesterday.

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More details on GPRO:

GoPro, Inc. develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing, and enjoying engaging content. Currently there are 6 analysts that rate GoPro a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for GoPro has been 6.3 million shares per day over the past 30 days. GoPro has a market cap of $1.6 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.50 and a short float of 29.8% with 3.33 days to cover. Shares are down 35.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates GoPro as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • GOPRO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, GOPRO INC reported lower earnings of $0.23 versus $0.77 in the prior year. For the next year, the market is expecting a contraction of 495.6% in earnings (-$0.91 versus $0.23).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Household Durables industry. The net income has significantly decreased by 741.5% when compared to the same quarter one year ago, falling from $16.75 million to -$107.46 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Household Durables industry and the overall market, GOPRO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$33.27 million or 150.19% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 81.90%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 809.09% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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