Investors Purchase High Volume of Call Options on Peloton Interactive (NASDAQ:PTON)

Key Points

• On Tuesday, Peloton Interactive experienced a significant surge in options trading with the purchase of 90,554 call options, marking a 119% increase compared to its average volume.
• The stock traded up to $7.86, with a market capitalization of $3.20 billion and a 1-year price range of $4.63 to $10.90.
• Peloton's recent quarterly earnings showed an EPS of $0.05, beating expectations, despite a revenue decline of 5.8% year-over-year.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) was the target of unusually large options trading activity on Tuesday. Stock investors bought 90,554 call options on the stock. This is an increase of approximately 119% compared to the average volume of 41,351 call options.

Peloton Interactive Stock Performance

Shares of NASDAQ:PTON traded up $0.39 during trading hours on Tuesday, hitting $7.86. The stock had a trading volume of 10,828,330 shares, compared to its average volume of 15,329,155. The stock's fifty day simple moving average is $7.94 and its 200 day simple moving average is $7.06. Peloton Interactive has a 1-year low of $4.63 and a 1-year high of $10.90. The firm has a market capitalization of $3.20 billion, a price-to-earnings ratio of -25.35, a PEG ratio of 2.56 and a beta of 2.27.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.05 EPS for the quarter, beating the consensus estimate of ($0.07) by $0.12. The firm had revenue of $606.90 million during the quarter, compared to analyst estimates of $580.29 million. During the same quarter in the previous year, the business posted ($0.08) EPS. Peloton Interactive's revenue for the quarter was down 5.8% compared to the same quarter last year. Peloton Interactive has set its FY 2025 guidance at EPS. As a group, research analysts anticipate that Peloton Interactive will post -0.36 EPS for the current year.

Insider Activity at Peloton Interactive

In other news, CFO Elizabeth F. Coddington sold 238,664 shares of the stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $7.85, for a total transaction of $1,873,512.40. Following the transaction, the chief financial officer owned 346,535 shares of the company's stock, valued at approximately $2,720,299.75. This trade represents a 40.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Nick V. Caldwell sold 206,901 shares of the stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $7.78, for a total transaction of $1,609,689.78. Following the transaction, the insider directly owned 737,788 shares in the company, valued at $5,739,990.64. The trade was a 21.90% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,851,882 shares of company stock worth $14,798,917. 1.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Oder Investment Management LLC bought a new position in shares of Peloton Interactive in the first quarter valued at approximately $336,000. Wealth Enhancement Advisory Services LLC boosted its holdings in shares of Peloton Interactive by 385.6% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 60,476 shares of the company's stock valued at $382,000 after acquiring an additional 48,023 shares in the last quarter. Teacher Retirement System of Texas bought a new position in shares of Peloton Interactive in the first quarter valued at approximately $431,000. Resolute Capital Asset Partners LLC bought a new position in shares of Peloton Interactive in the first quarter valued at approximately $790,000. Finally, Panagora Asset Management Inc. boosted its holdings in shares of Peloton Interactive by 214.5% in the first quarter. Panagora Asset Management Inc. now owns 745,041 shares of the company's stock valued at $4,709,000 after acquiring an additional 508,160 shares in the last quarter. 77.01% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

PTON has been the topic of several research reports. Truist Financial set a $11.00 price objective on shares of Peloton Interactive in a research note on Thursday, August 7th. The Goldman Sachs Group reiterated a "buy" rating and set a $11.50 price objective on shares of Peloton Interactive in a research note on Thursday, October 2nd. Wall Street Zen upgraded shares of Peloton Interactive from a "hold" rating to a "buy" rating in a research note on Friday, October 3rd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Peloton Interactive in a research note on Tuesday, October 14th. Finally, Telsey Advisory Group increased their price objective on shares of Peloton Interactive from $8.00 to $9.00 and gave the stock a "market perform" rating in a research note on Thursday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Peloton Interactive has an average rating of "Hold" and an average price target of $9.36.

About Peloton Interactive

Peloton Interactive, Inc operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.