Peloton Interactive, Inc. (NASDAQ:PTON) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Peloton has a consensus “Hold” rating from 13 analysts: six hold, five buy and two sell recommendations. The average 12-month price target is $7.95.
• Analyst views were mixed, with Morgan Stanley and Weiss Ratings downgrading the stock, while UBS maintained a buy rating despite cutting its price target to $10.
• Insiders sold 182,061 shares worth approximately $989,779 over the past three months, while institutional investors and hedge funds own 77.01% of Peloton’s stock.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) has earned a consensus rating of "Hold" from the thirteen analysts that are covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a sell recommendation, six have given a hold recommendation and five have given a buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $7.95.

A number of research analysts have commented on the company. Morgan Stanley cut Peloton Interactive from an "equal weight" rating to an "underweight" rating and reduced their price objective for the stock from $5.00 to $4.50 in a research note on Tuesday, September 8th. Weiss Ratings lowered Peloton Interactive from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, September 18th. Telsey Advisory Group reiterated a "market perform" rating on shares of Peloton Interactive in a report on Monday, August 3rd. Finally, UBS Group reduced their price target on Peloton Interactive from $11.00 to $10.00 and set a "buy" rating on the stock in a research report on Tuesday, September 8th.

Insider Activity

In other news, Director Karen Boone sold 25,000 shares of Peloton Interactive stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $5.35, for a total value of $133,750.00. Following the completion of the transaction, the director owned 236,063 shares in the company, valued at approximately $1,262,937.05. This trade represents a 9.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Saqib Baig sold 36,439 shares of Peloton Interactive stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.36, for a total transaction of $195,313.04. Following the completion of the transaction, the chief accounting officer directly owned 272,641 shares of the company's stock, valued at approximately $1,461,355.76. This represents a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 182,061 shares of company stock worth $989,779. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Peloton Interactive

Several large investors have recently added to or reduced their stakes in PTON. Eminence Capital LP lifted its stake in shares of Peloton Interactive by 20.3% in the 4th quarter. Eminence Capital LP now owns 18,154,907 shares of the company's stock worth $111,834,000 after acquiring an additional 3,069,497 shares during the period. Pale Fire Capital SE boosted its holdings in shares of Peloton Interactive by 24.0% in 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 in the last quarter. Norges Bank bought a new position in shares of Peloton Interactive in the fourth quarter valued at approximately $23,796,000. Technology Crossover Management IX Ltd. acquired a new position in shares of Peloton Interactive during the second quarter valued at approximately $21,727,601. Finally, Pacer Advisors Inc. increased its stake in shares of Peloton Interactive by 40.6% during the first quarter. Pacer Advisors Inc. now owns 3,185,534 shares of the company's stock valued at $13,666,000 after acquiring an additional 919,754 shares during the period. 77.01% of the stock is owned by institutional investors and hedge funds.

Peloton Interactive Stock Performance

Shares of PTON opened at $4.99 on Thursday. The company has a market capitalization of $2.19 billion, a price-to-earnings ratio of 41.59, a PEG ratio of 0.40 and a beta of 2.52. The company's 50 day simple moving average is $5.45 and its 200 day simple moving average is $5.37. Peloton Interactive has a 1 year low of $3.65 and a 1 year high of $9.20.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.13 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.02. Peloton Interactive had a negative return on equity of 23.92% and a net margin of 2.58%.The business had revenue of $607.70 million during the quarter, compared to the consensus estimate of $596.60 million. During the same quarter in the previous year, the business earned $0.05 earnings per share. The business's revenue for the quarter was up .1% on a year-over-year basis. Equities analysts expect that Peloton Interactive will post 0.31 EPS for the current fiscal year.

Peloton Interactive Company Profile

Peloton Interactive, Inc is a connected fitness company that combines exercise equipment, digital technology and subscription-based content. Its products include the Peloton Bike and Bike+, Tread and Tread+, Row, and Peloton Guide, along with related accessories and apparel. The company also offers digital memberships that provide access to live and on-demand cycling, running, strength, yoga, meditation and other fitness classes.

Peloton sells its products through its website, retail channels and commercial partnerships, while its subscription services are available to owners of Peloton equipment and, through a separate offering, to customers using compatible third-party devices.

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