Morgan Stanley Forecasts Strong Price Appreciation for Peloton Interactive (NASDAQ:PTON) Stock

Key Points

• Morgan Stanley has increased its price target for Peloton Interactive from $4.00 to $5.75, maintaining an "equal weight" rating on the stock, which suggests a potential downside from the stock's previous close.
• Other analysts have also raised their ratings and target prices for Peloton, with Macquarie setting a new target of $10.00 and UBS Group at $11.00.
• Peloton's stock has shown a volatile performance, trading down during midday on Monday at around $6.60, while having a 12-month trading range from $2.83 to $10.90.

Peloton Interactive (NASDAQ:PTON - Free Report) had its price target upped by Morgan Stanley from $4.00 to $5.75 in a report released on Monday morning,Benzinga reports. The firm currently has an equal weight rating on the stock.

PTON has been the topic of a number of other research reports. Truist Financial upgraded shares of Peloton Interactive from a "hold" rating to a "buy" rating and set a $11.00 target price on the stock in a research report on Monday, April 28th. The Goldman Sachs Group lowered their target price on shares of Peloton Interactive from $10.00 to $7.00 and set a "neutral" rating for the company in a research note on Friday, May 9th. Deutsche Bank Aktiengesellschaft raised Peloton Interactive from a "hold" rating to a "buy" rating and set a $6.60 price target on the stock in a research note on Monday, April 14th. Macquarie upgraded shares of Peloton Interactive from a "neutral" rating to an "outperform" rating and upped their target price for the stock from $9.00 to $10.00 in a report on Tuesday, May 13th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Peloton Interactive from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Tuesday, April 8th. Eleven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat, Peloton Interactive currently has an average rating of "Hold" and a consensus target price of $8.46.

Peloton Interactive Price Performance

Peloton Interactive stock traded down $0.07 during trading hours on Monday, hitting $7.05. The company had a trading volume of 3,182,928 shares, compared to its average volume of 14,078,404. The firm has a market cap of $2.75 billion, a PE ratio of -16.01 and a beta of 2.08. Peloton Interactive has a one year low of $2.83 and a one year high of $10.90. The firm has a 50-day moving average of $6.72 and a 200 day moving average of $6.92.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported ($0.12) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.06). The firm had revenue of $624.00 million for the quarter, compared to the consensus estimate of $620.39 million. During the same quarter in the previous year, the company earned ($0.45) earnings per share. The company's revenue for the quarter was down 13.1% on a year-over-year basis. As a group, research analysts expect that Peloton Interactive will post -0.36 earnings per share for the current year.

Insiders Place Their Bets

In other Peloton Interactive news, COO Charles Peter Kirol sold 20,633 shares of the stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $6.39, for a total value of $131,844.87. Following the sale, the chief operating officer directly owned 35,877 shares in the company, valued at $229,254.03. This represents a 36.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jennifer Cunningham Cotter sold 145,622 shares of the firm's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $6.25, for a total transaction of $910,137.50. Following the sale, the insider owned 235,439 shares in the company, valued at approximately $1,471,493.75. This trade represents a 38.21% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 576,585 shares of company stock worth $3,688,758. Company insiders own 1.34% of the company's stock.

Institutional Trading of Peloton Interactive

Several institutional investors and hedge funds have recently made changes to their positions in PTON. Russell Investments Group Ltd. grew its holdings in shares of Peloton Interactive by 969.6% during the 4th quarter. Russell Investments Group Ltd. now owns 4,011 shares of the company's stock valued at $35,000 after purchasing an additional 3,636 shares during the last quarter. Bessemer Group Inc. grew its holdings in Peloton Interactive by 1,602.6% in the 2nd quarter. Bessemer Group Inc. now owns 5,312 shares of the company's stock worth $37,000 after acquiring an additional 5,000 shares during the last quarter. FNY Investment Advisers LLC bought a new stake in Peloton Interactive in the 1st quarter worth $37,000. Comerica Bank grew its position in shares of Peloton Interactive by 29.1% in the 4th quarter. Comerica Bank now owns 6,164 shares of the company's stock worth $54,000 after buying an additional 1,389 shares during the last quarter. Finally, Nisa Investment Advisors LLC raised its holdings in shares of Peloton Interactive by 40.2% during the first quarter. Nisa Investment Advisors LLC now owns 6,503 shares of the company's stock valued at $41,000 after acquiring an additional 1,864 shares in the last quarter. Hedge funds and other institutional investors own 77.01% of the company's stock.

Peloton Interactive Company Profile

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.