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GOPRO Earnings Release Nears with Mixed Insider and Hedge Fund Activity

GOPRO is set to reveal its earnings on May 12th, with analysts expecting negative EPS and modest revenue. The insider trading trend remains concerning, while hedge funds show varied interest. Investors should weigh these factors carefully ahead of the announcement.

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AI Rating:   4
Overview of GOPRO's Upcoming Earnings
GOPRO is preparing for its quarterly earnings report scheduled for May 12th, with analyst expectations set at a revenue of $127,140,450 and earnings per share (EPS) projected at -$0.13. The negative EPS indicates a quarterly loss, raising challenges for investor confidence leading up to the announcement.

Insider Trading Activity
The report shows that GOPRO insiders have conducted three open market trades over the past six months, all of which involved selling shares without any purchases. This trend could signal a lack of faith in the company's forthcoming performance or strategic direction, as insiders are divesting rather than investing. Such activities can negatively influence investor sentiment, potentially leading to a dip in stock prices as it raises red flags regarding future company prospects.

Hedge Fund Activity
Regarding institutional activities, the mixed signals from hedge funds present a complex picture. While 72 institutional investors increased their positions in GOPRO, 68 others decreased theirs. Notable additions include MAC financial entities like CHARLES SCHWAB and UBS, who significantly boosted their holdings. This influx might indicate a belief in long-term recovery despite short-term earnings struggles. However, the exits from hedge funds such as D.E. Shaw and BlackRock illustrate an opposing sentiment, suggesting the stock may be viewed as too risky or unpromising by key industry investors.

Conclusion for Investors
The upcoming earnings report and recent insider trading are critical data points that professional investors must analyze closely. The projected negative EPS combined with a concerning insider selling trend raises discernable risk factors. Additionally, while hedge fund activity shows some institutional faith in the long-term prospects of GOPRO, the overall mixed signals could cause volatility in stock prices in the near term. Investors should remain vigilant and prepared for the market reaction post-announcement.
Stocks:  GPRO