Trade-Ideas LLC identified

GoPro

(

GPRO

) as a "dead cat bounce" (down big yesterday but up 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 $197.5 million.
  • GPRO has traded 469,395 shares today.
  • GPRO is up 3.1% today.
  • GPRO was down 7.2% 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. GPRO has a PE ratio of 14. Currently there are 8 analysts that rate GoPro a buy, 2 analysts rate it a sell, and 5 rate it a hold.

The average volume for GoPro has been 9.3 million shares per day over the past 30 days. GoPro has a market cap of $2.0 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 39.1% with 2.95 days to cover. Shares are down 71.4% year-to-date as of the close of trading on Monday.

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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 generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • GPRO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 69.84%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Net operating cash flow has significantly decreased to $4.62 million or 90.16% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Household Durables industry average, but is greater than that of the S&P 500. The net income increased by 28.6% when compared to the same quarter one year prior, rising from $14.62 million to $18.80 million.
  • 48.51% is the gross profit margin for GOPRO INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.69% trails the industry average.
  • GPRO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GPRO has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.

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