Investors Buy Large Volume of Call Options on Peloton Interactive (NASDAQ:PTON)

Key Points

• Unusual options activity: Investors purchased 46,375 Peloton call options, 121% above the typical volume of 20,964, signaling increased speculative interest in the stock.
• Peloton shares traded at $4.88, well below their 52-week high of $9.20. The company recently exceeded quarterly earnings and revenue estimates, reporting $0.13 EPS and $607.7 million in revenue.
• Analyst sentiment remains cautious: Peloton has a consensus “Hold” rating and a $7.95 target price, while insiders have sold nearly $1 million of stock over the past 90 days.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) saw some unusual options trading on Thursday. Stock investors bought 46,375 call options on the stock. This represents an increase of 121% compared to the typical volume of 20,964 call options.

Peloton Interactive Price Performance

Peloton Interactive stock traded up $0.04 during midday trading on Thursday, reaching $4.88. The company's stock had a trading volume of 1,050,414 shares, compared to its average volume of 12,032,626. Peloton Interactive has a 52-week low of $3.65 and a 52-week high of $9.20. The stock has a market capitalization of $2.14 billion, a P/E ratio of 40.71, a PEG ratio of 0.38 and a beta of 2.52. The stock's 50-day simple moving average is $5.70 and its 200-day simple moving average is $5.29.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last announced its quarterly 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 negative return on equity of 23.92% and a net margin of 2.58%.The company had revenue of $607.70 million for the quarter, compared to the consensus estimate of $596.60 million. During the same period last year, the firm earned $0.05 EPS. The firm's revenue for the quarter was up .1% compared to the same quarter last year. As a group, equities research analysts expect that Peloton Interactive will post 0.31 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have issued reports on PTON. Weiss Ratings upgraded shares of Peloton Interactive from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, September 4th. Morgan Stanley lowered shares of Peloton Interactive from an "equal weight" rating to an "underweight" rating and reduced their price target for the stock from $5.00 to $4.50 in a research note on Tuesday, September 8th. UBS Group dropped their price objective on shares of Peloton Interactive from $11.00 to $10.00 and set a "buy" rating on the stock in a report on Tuesday, September 8th. Finally, Telsey Advisory Group reiterated a "market perform" rating on shares of Peloton Interactive in a research report on Monday, August 3rd. Five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $7.95.

Insider Transactions at Peloton Interactive

In other Peloton Interactive news, insider Dion C. Sanders sold 112,512 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $5.45, for a total transaction of $613,190.40. Following the completion of the transaction, the insider directly owned 18,801 shares of the company's stock, valued at approximately $102,465.45. This represents a 85.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 dated 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 owned 272,641 shares of the company's stock, valued at $1,461,355.76. The trade was a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 182,061 shares of company stock valued at $989,779 over the last ninety days. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Peloton Interactive

A number of institutional investors and hedge funds have recently modified their holdings of the company. Jackson Creek Investment Advisors LLC acquired a new position in Peloton Interactive in the fourth quarter valued at $1,110,000. Ardmore Road Asset Management LP lifted its stake in shares of Peloton Interactive by 187.9% in the first quarter. Ardmore Road Asset Management LP now owns 1,500,000 shares of the company's stock worth $6,435,000 after acquiring an additional 979,058 shares in the last quarter. Bastion Asset Management Inc. acquired a new stake in shares of Peloton Interactive during the first quarter worth approximately $7,020,000. Technology Crossover Management IX Ltd. bought a new position in Peloton Interactive during the 2nd quarter worth approximately $21,727,601. Finally, Kanen Wealth Management LLC acquired a new stake in Peloton Interactive during the first quarter worth about $7,560,000. Institutional investors and hedge funds own 77.01% of the company's stock.

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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