Peloton Interactive Sees Unusually Large Options Volume (NASDAQ:PTON)

Key Points

• Options activity surged: Traders bought 85,211 Peloton call options, 475% above the average volume of 14,822.
• Shares were little changed at $5.46. The latest quarterly results beat estimates, with EPS of $0.19 versus $0.11 expected and revenue of $559.2 million versus $553.5 million expected.
• Analysts’ consensus rating was Hold, with an average price target of $7.60; company insiders had sold 217,712 shares over the prior 90 days.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) was the recipient of some unusual options trading on Thursday. Stock traders acquired 85,211 call options on the stock. This is an increase of 475% compared to the average volume of 14,822 call options.

Peloton Interactive Trading Down 0.0%

Peloton Interactive stock traded down $0.00 during midday trading on Thursday, hitting $5.46. The stock had a trading volume of 7,279,270 shares, compared to its average volume of 11,489,686. The firm's fifty day moving average is $5.12 and its two-hundred day moving average is $5.22. The company has a market capitalization of $2.40 billion, a PE ratio of 45.63, a P/E/G ratio of 0.42 and a beta of 2.56. Peloton Interactive has a 52-week low of $3.65 and a 52-week high of $7.92.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.08. The business had revenue of $559.20 million for the quarter, compared to the consensus estimate of $553.46 million. Peloton Interactive had a net margin of 2.58% and a negative return on equity of 23.92%. The company's revenue for the quarter was up 1.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.03 earnings per share. As a group, equities research analysts predict that Peloton Interactive will post 0.31 earnings per share for the current fiscal year.

Analyst Ratings Changes

PTON has been the subject of a number of research reports. UBS Group reduced their target price on shares of Peloton Interactive from $11.00 to $10.00 and set a "buy" rating for the company in a report on Tuesday, September 8th. Weiss Ratings upgraded shares of Peloton Interactive from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, October 2nd. Canaccord Genuity Group cut their price objective on shares of Peloton Interactive from $10.00 to $8.00 and set a "buy" rating for the company in a research report on Friday, October 30th. Morgan Stanley lowered 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. Finally, Telsey Advisory Group reaffirmed a "market perform" rating on shares of Peloton Interactive in a report on Monday, August 3rd. Five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $7.60.

Insider Transactions at Peloton Interactive

In other Peloton Interactive news, COO Charles Kirol sold 28,849 shares of the firm's stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $5.33, for a total value of $153,765.17. Following the transaction, the chief operating officer directly owned 197,334 shares of the company's stock, valued at approximately $1,051,790.22. This trade represents a 12.75% 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, Director Karen Boone sold 25,000 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $5.35, for a total value of $133,750.00. Following the sale, the director owned 236,063 shares of the company's stock, valued at approximately $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 sold 217,712 shares of company stock valued at $1,177,289 over the last 90 days. 1.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Peloton Interactive

A number of institutional investors have recently bought and sold shares of PTON. GAMMA Investing LLC raised its stake in Peloton Interactive by 232.0% during the 2nd quarter. GAMMA Investing LLC now owns 4,399 shares of the company's stock valued at $26,000 after purchasing an additional 3,074 shares during the period. Proficio Capital Partners LLC purchased a new position in Peloton Interactive in the 2nd quarter worth approximately $60,000. Lotus Technology Management LP bought a new position in Peloton Interactive in the 2nd quarter worth approximately $60,000. Sterling Capital Management LLC boosted its stake in Peloton Interactive by 37.0% in the 3rd quarter. Sterling Capital Management LLC now owns 10,218 shares of the company's stock worth $51,000 after purchasing an additional 2,759 shares during the period. Finally, SummitTX Capital L.P. bought a new position in Peloton Interactive in the 1st quarter worth approximately $50,000. Hedge funds and other institutional investors own 77.01% of the company's stock.

About Peloton Interactive

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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