Peloton Interactive (NASDAQ:PTON) Announces Earnings Results, Beats Estimates By $0.12 EPS

Key Points

• Peloton Interactive reported earnings of $0.05 EPS for the quarter, exceeding analysts' expectations of ($0.07) by $0.12, alongside revenues of $606.90 million, which also surpassed consensus estimates.
• Despite the positive earnings report, Peloton's quarterly revenue decreased by 5.8% year-over-year, indicating ongoing challenges in the market.
• Several brokerages have upgraded Peloton's stock rating, with Goldman Sachs raising its target price from $7.00 to $11.50, reflecting increased optimism among analysts.

Peloton Interactive (NASDAQ:PTON - Get Free Report) announced its earnings results on Thursday. The company reported $0.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.12, Zacks reports. The company had revenue of $606.90 million during the quarter, compared to the consensus estimate of $580.29 million. The business's quarterly revenue was down 5.8% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.08) EPS. Peloton Interactive updated its FY 2025 guidance to EPS.

Peloton Interactive Stock Performance

Shares of NASDAQ PTON traded up $0.73 during mid-day trading on Friday, reaching $7.84. The company had a trading volume of 28,271,575 shares, compared to its average volume of 14,188,003. The stock has a fifty day moving average of $6.73 and a two-hundred day moving average of $6.91. The company has a market capitalization of $3.06 billion, a price-to-earnings ratio of -25.29 and a beta of 2.08. Peloton Interactive has a 12-month low of $2.83 and a 12-month high of $10.90.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on PTON. The Goldman Sachs Group upgraded shares of Peloton Interactive from a "neutral" rating to a "buy" rating and increased their target price for the company from $7.00 to $11.50 in a research report on Friday. Macquarie raised shares of Peloton Interactive from a "neutral" rating to an "outperform" rating and upped their price target for the company from $9.00 to $10.00 in a report on Tuesday, May 13th. Telsey Advisory Group reissued a "market perform" rating and issued a $8.00 price target on shares of Peloton Interactive in a report on Thursday. Morgan Stanley upped their price target on shares of Peloton Interactive from $4.00 to $5.75 and gave the company an "equal weight" rating in a report on Monday, August 4th. Finally, Deutsche Bank Aktiengesellschaft raised shares of Peloton Interactive from a "hold" rating to a "buy" rating and set a $6.60 price target for the company in a report on Monday, April 14th. Ten equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat, Peloton Interactive has a consensus rating of "Hold" and a consensus target price of $8.73.

Insiders Place Their Bets

In other news, CFO Elizabeth F. Coddington sold 38,708 shares of the stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $6.96, for a total value of $269,407.68. Following the completion of the sale, the chief financial officer directly owned 294,342 shares of the company's stock, valued at $2,048,620.32. This represents a 11.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Nick V. Caldwell sold 63,925 shares of the stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $6.99, for a total transaction of $446,835.75. Following the completion of the sale, the insider directly owned 578,668 shares of the company's stock, valued at $4,044,889.32. This trade represents a 9.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 576,585 shares of company stock valued at $3,688,758 over the last ninety days. Insiders own 1.34% of the company's stock.

Institutional Trading of Peloton Interactive

Hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. increased its holdings in Peloton Interactive by 27.1% in the first quarter. Goldman Sachs Group Inc. now owns 7,056,642 shares of the company's stock worth $44,598,000 after buying an additional 1,503,680 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Peloton Interactive by 16.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 695,378 shares of the company's stock worth $4,395,000 after buying an additional 97,291 shares during the last quarter. Royal Bank of Canada increased its holdings in Peloton Interactive by 342.6% in the first quarter. Royal Bank of Canada now owns 616,367 shares of the company's stock worth $3,896,000 after buying an additional 477,106 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Peloton Interactive by 2.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 290,981 shares of the company's stock worth $1,839,000 after buying an additional 6,921 shares during the last quarter. Finally, Caxton Associates LLP acquired a new position in Peloton Interactive in the first quarter worth approximately $282,000. 77.01% of the stock is owned by hedge funds and other institutional investors.

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.

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