GoPro Inc. shares fell 6.9 percent after the camera company’s founders donated some of their holdings to establish a charitable foundation, raising concern that releasing more shares to the market might weigh on prices.

JPMorgan Chase & Co., the main banker for the company’s initial public offering in June, gave GoPro Chief Executive Officer Nicholas Woodman and his wife, Jill, authorization to donate 5.82 million shares, valued at $497.5 million at the current price, to establish the Jill & Nicholas Woodman Foundation, the company said in a statement today. The stock closed at $85.46 in New York.

GoPro’s shares have more than tripled since the June 25 IPO, fueled by growing sales of its tiny video cameras that adventurers strap onto their bodies to record their exploits. Under a lockup agreement, all of GoPro’s shareholders prior to the IPO are restricted from selling stock until December. JPMorgan only exempted the donated shares from the lockup, the San Mateo, California-based company said.

“It’s an overreaction to this development,” said Shebly Seyrafi, an analyst at FBN Securities in New York, who has the equivalent of a buy rating on the stock. “The stock tripled in a matter of three months, and this is a buying opportunity.”

GoPro is introducing new cameras this month, including new high-end models and a version priced at $129. The new models will drive further sales and are set to be a catalyst for the company’s shares to rise, Seyrafi said.

Jeff Brown, a spokesman for GoPro, declined to comment on the decline in shares.

To contact the reporter on this story: Denni Hu in New York at To contact the editors responsible for this story: Pui-Wing Tam at Reed Stevenson, Jillian Ward.

Tags: gopro
Photo Credit: The GoPro Hero3. GoPro