Peloton Interactive (NASDAQ:PTON) Releases Earnings Results, Beats Expectations 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, August 7th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.12, Zacks reports. The firm had revenue of $606.90 million during the quarter, compared to analysts' expectations of $580.29 million. Peloton Interactive's revenue for the quarter was down 5.8% compared to the same quarter last year. During the same quarter last year, the company posted ($0.08) earnings per share. Peloton Interactive updated its FY 2025 guidance to EPS.

Peloton Interactive Stock Down 2.6%

Shares of NASDAQ:PTON traded down $0.23 on Thursday, reaching $8.49. 12,938,957 shares of the company's stock were exchanged, compared to its average volume of 16,614,670. The firm has a market capitalization of $3.31 billion, a price-to-earnings ratio of -27.39 and a beta of 2.08. Peloton Interactive has a fifty-two week low of $2.93 and a fifty-two week high of $10.90. The business's 50-day moving average is $6.85 and its two-hundred day moving average is $6.91.

Insider Activity at Peloton Interactive

In other Peloton Interactive news, insider Nick V. Caldwell sold 30,290 shares of the stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $8.00, for a total transaction of $242,320.00. Following the sale, the insider directly owned 548,378 shares of the company's stock, valued at approximately $4,387,024. This represents a 5.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Dion C. Sanders sold 122,036 shares of the stock in a transaction on Friday, May 16th. The stock was sold at an average price of $6.25, for a total transaction of $762,725.00. Following the sale, the insider directly owned 114,318 shares in the company, valued at $714,487.50. This trade represents a 51.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 606,875 shares of company stock valued at $3,931,078 in the last ninety days. 1.34% of the stock is owned by insiders.

Institutional Trading of Peloton Interactive

A number of large investors have recently modified their holdings of PTON. Royal Bank of Canada increased its holdings in shares of Peloton Interactive by 342.6% in the 1st quarter. Royal Bank of Canada now owns 616,367 shares of the company's stock worth $3,896,000 after acquiring an additional 477,106 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Peloton Interactive by 2.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 290,981 shares of the company's stock worth $1,839,000 after acquiring an additional 6,921 shares during the period. NewEdge Advisors LLC increased its holdings in shares of Peloton Interactive by 3,132.6% in the 1st quarter. NewEdge Advisors LLC now owns 15,549 shares of the company's stock worth $98,000 after acquiring an additional 15,068 shares during the period. Goldman Sachs Group Inc. increased its holdings in shares of Peloton Interactive by 27.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 7,056,642 shares of the company's stock worth $44,598,000 after acquiring an additional 1,503,680 shares during the period. Finally, Caxton Associates LLP acquired a new stake in shares of Peloton Interactive in the 1st quarter worth about $282,000. Institutional investors and hedge funds own 77.01% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Telsey Advisory Group restated a "market perform" rating and issued a $8.00 target price on shares of Peloton Interactive in a research note on Thursday, August 7th. Macquarie upped their target price on shares of Peloton Interactive from $10.00 to $11.00 and gave the company an "outperform" rating in a research note on Thursday. The Goldman Sachs Group upgraded shares of Peloton Interactive from a "neutral" rating to a "buy" rating and upped their target price for the company from $7.00 to $11.50 in a research note on Friday, August 8th. 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, Needham & Company LLC reaffirmed a "hold" rating on shares of Peloton Interactive in a report on Thursday, August 7th. Ten investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $8.79.

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.