GoPro Inc (GPRO) stock’s short interest has tripled in six months’ time
GoPro Inc (NASDAQ:GPRO) is recently facing a lawsuit threat by investors for misleading them about the actual position of the company. The basis of the lawsuit includes misrepresentation by GoPro to develop and/or bring to market a drone product to house its cameras. Moreover, the company misguided the investors about the sales of HERO4 Session cameras. Investors believe that the projected guidance for the third and fourth quarter of fiscal year were unrealistic.
Despite the downturn in the company’s stock price and the upcoming challenges GoPro might face, there are a few factors which make some market analysts believe that the company’s stock might start climbing again and they have a bullish case for GoPro stock. Since last week, the company’s share has gained 13.86% market value and market is expecting that it will maintain its momentum in the future. Moreover, short interest of GoPro has tripled in the last six months and market analysts predicts that any further increase in short interest along with some positive news about the company will escalate the stock price by a double digit.
GoPro stock soared by 10.3% on February 09, as the company’s management announced about signing off a collaborative patent license agreement with Microsoft Corporation (NASDAQ:MSFT). However, the performance of the stock is not much pleasing lately as it has lost around 34.76% of its market value year-to-date (YTD), while Dow Jones and S&P 500 index are down by 5.38% and 5.23%, respectively in the same period. GoPro’s stock has an average daily trading volume of 8.97 million and a 52-week range of $9.01-65.49. The company’s stock is trading at $11.75 in pre-market hours on February 25.
Creative Planning has recently increased its stake in GoPro by 86.71% as per a recent filing with the Security and Exchange Commission (SEC). Creative Planning now holds 310,633 shares which are worth$5,595,000.
There are no recent changes in ratings of the company’s stock. The market analysts have a price target suggestion ranging from $7 to $21 as per Zack’s Research firm data. GoPro stock has an average rating of a Hold and a consensus price target of $12.363.