Peloton Interactive (NASDAQ:PTON) Price Target Cut to $6.50 by Analysts at The Goldman Sachs Group

Key Points

• Goldman Sachs lowered Peloton’s price target from $7.50 to $6.50 while maintaining a “buy” rating, implying roughly 21% upside from the stock’s $5.37 opening price.
• Analyst opinion remains mixed: Peloton has a consensus “hold” rating, with an average price target of $7.56 based on four buys, seven holds and one sell.
• Peloton exceeded its latest earnings expectations, reporting $0.13 in quarterly EPS versus $0.11 forecast and $607.7 million in revenue, but insiders sold 217,712 shares worth approximately $1.18 million over the past 90 days.

Peloton Interactive (NASDAQ:PTON - Get Free Report) had its price objective lowered by equities researchers at The Goldman Sachs Group from $7.50 to $6.50 in a report released on Monday, Benzinga reports. The firm currently has a "buy" rating on the stock. The Goldman Sachs Group's price target would indicate a potential upside of 21.04% from the company's current price.

PTON has been the subject of several other reports. UBS Group dropped their price objective on Peloton Interactive from $11.00 to $10.00 and set a "buy" rating for the company in a research note on Tuesday, September 8th. Telsey Advisory Group reiterated a "market perform" rating on shares of Peloton Interactive in a research report on Monday, August 3rd. Weiss Ratings raised Peloton Interactive from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, October 2nd. Finally, Morgan Stanley lowered Peloton Interactive from an "equal weight" rating to an "underweight" rating and lowered their target price for the company from $5.00 to $4.50 in a report on Tuesday, September 8th. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Peloton Interactive presently has a consensus rating of "Hold" and an average price target of $7.56.

Peloton Interactive Stock Performance

PTON stock opened at $5.37 on Monday. The company has a market cap of $2.36 billion, a P/E ratio of 44.75, a P/E/G ratio of 0.42 and a beta of 2.54. Peloton Interactive has a 52 week low of $3.65 and a 52 week high of $7.97. The company's 50-day moving average price is $5.14 and its 200 day moving average price is $5.48.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.02. Peloton Interactive had a net margin of 2.58% and a negative return on equity of 23.92%. The company had revenue of $607.70 million for the quarter, compared to analyst estimates of $596.60 million. During the same period in the prior year, the business posted $0.05 earnings per share. The firm's revenue for the quarter was up .1% compared to the same quarter last year. On average, equities research analysts expect that Peloton Interactive will post 0.31 earnings per share for the current year.

Insider Activity

In other Peloton Interactive news, CAO Saqib Baig sold 36,439 shares of the firm's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $5.36, for a total transaction of $195,313.04. Following the sale, the chief accounting officer directly owned 272,641 shares of the company's stock, valued at $1,461,355.76. This trade represents a 11.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Karen Boone sold 25,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $5.35, for a total transaction of $133,750.00. Following the sale, the director directly owned 236,063 shares in the company, valued at $1,262,937.05. This represents a 9.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 217,712 shares of company stock valued at $1,177,289 in the last 90 days. Company insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in PTON. Pale Fire Capital SE grew its position in Peloton Interactive by 24.0% during the second quarter. Pale Fire Capital SE now owns 7,728,586 shares of the company's stock valued at $45,676,000 after acquiring an additional 1,494,009 shares during the period. Technology Crossover Management IX Ltd. purchased a new position in shares of Peloton Interactive in the 2nd quarter worth about $21,727,601. Pacer Advisors Inc. raised its holdings in shares of Peloton Interactive by 40.6% in the 1st quarter. Pacer Advisors Inc. now owns 3,185,534 shares of the company's stock worth $13,666,000 after purchasing an additional 919,754 shares during the period. Kanen Wealth Management LLC purchased a new position in shares of Peloton Interactive in the 1st quarter worth about $7,560,000. Finally, Bastion Asset Management Inc. acquired a new position in shares of Peloton Interactive in the 1st quarter valued at about $7,020,000. 77.01% of the stock is owned by hedge funds and other institutional investors.

Peloton Interactive Company Profile

Peloton Interactive, Inc is a connected-fitness company that combines exercise equipment, digital content and subscription services. Its product portfolio includes the Peloton Bike, Bike+, Tread treadmill, Row rowing machine and related accessories, apparel and fitness products. The company's equipment is designed to connect users with live and on-demand instructor-led workouts through integrated screens and digital platforms.

Peloton offers subscription memberships that provide access to classes in cycling, running, strength training, yoga, meditation, rowing and other fitness disciplines.

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