Peloton Interactive (NASDAQ:PTON) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Peloton from a "buy" to a "hold," and the stock's consensus among analysts is now a "Hold" with a $8.60 average price target (5 Buy, 8 Hold, 1 Sell).
• Peloton recently missed earnings and revenue estimates (EPS -$0.09 vs. -$0.07 expected; revenue $656.5M vs. $675.0M expected), with quarterly revenue down 2.5% year-over-year and the shares trading around $5.10 (52-week range $3.65–$9.20).
• Insiders have been net sellers, offloading 934,313 shares (~$3.97M) in the last 90 days while insiders own 1.3% of the company and institutions hold about 77%.

Peloton Interactive (NASDAQ:PTON - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Other research analysts have also issued research reports about the company. Telsey Advisory Group dropped their target price on Peloton Interactive from $8.00 to $6.00 and set a "market perform" rating on the stock in a report on Friday, February 6th. Zacks Research lowered Peloton Interactive from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. UBS Group restated a "buy" rating on shares of Peloton Interactive in a report on Tuesday, February 3rd. JPMorgan Chase & Co. dropped their target price on Peloton Interactive from $9.00 to $6.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Finally, Truist Financial dropped their target price on Peloton Interactive from $12.00 to $9.00 and set a "buy" rating on the stock in a report on Friday, February 6th. Five analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $8.60.

Peloton Interactive Stock Performance

Shares of NASDAQ:PTON opened at $5.10 on Friday. The business's 50 day simple moving average is $4.24 and its two-hundred day simple moving average is $5.89. The firm has a market cap of $2.17 billion, a P/E ratio of -39.23, a PEG ratio of 0.82 and a beta of 2.37. Peloton Interactive has a 52-week low of $3.65 and a 52-week high of $9.20.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported ($0.09) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.02). The firm had revenue of $656.50 million during the quarter, compared to the consensus estimate of $675.04 million. During the same quarter in the previous year, the company earned ($0.24) EPS. The firm's quarterly revenue was down 2.5% on a year-over-year basis. On average, equities analysts forecast that Peloton Interactive will post -0.36 earnings per share for the current fiscal year.

Insider Activity at Peloton Interactive

In related news, insider Dion C. Sanders sold 146,844 shares of the stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $4.41, for a total transaction of $647,582.04. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nick V. Caldwell sold 42,632 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $3.86, for a total value of $164,559.52. Following the completion of the sale, the insider directly owned 880,956 shares of the company's stock, valued at $3,400,490.16. This represents a 4.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 934,313 shares of company stock valued at $3,967,085 in the last ninety days. Insiders own 1.30% of the company's stock.

Institutional Trading of Peloton Interactive

A number of large investors have recently bought and sold shares of the company. Krilogy Financial LLC purchased a new stake in Peloton Interactive in the first quarter worth $96,000. Kirr Marbach & Co. LLC IN increased its position in Peloton Interactive by 9.1% in the first quarter. Kirr Marbach & Co. LLC IN now owns 483,506 shares of the company's stock worth $2,074,000 after buying an additional 40,150 shares during the last quarter. Evolve Private Wealth LLC increased its position in Peloton Interactive by 40.0% in the first quarter. Evolve Private Wealth LLC now owns 14,177 shares of the company's stock worth $61,000 after buying an additional 4,051 shares during the last quarter. Diversified Trust Co increased its position in Peloton Interactive by 13.7% in the first quarter. Diversified Trust Co now owns 31,030 shares of the company's stock worth $133,000 after buying an additional 3,733 shares during the last quarter. Finally, Sankala Group LLC purchased a new stake in Peloton Interactive in the fourth quarter worth $31,000. 77.01% of the stock is owned by hedge funds and other institutional investors.

Peloton Interactive Company Profile

Peloton Interactive, Inc operates a digital fitness platform that combines connected exercise equipment with live and on-demand workout classes. The company's core products include stationary bikes (Peloton Bike and Bike+), treadmills (Peloton Tread and Tread+), and the Peloton Row. Each device integrates a touchscreen display that streams instructor-led cycling, running, strength, yoga, meditation and other fitness classes. Peloton generates recurring revenue through subscription plans, which grant users access to its growing library of workouts, performance tracking tools and community features.

Founded in 2012 by John Foley and headquartered in New York City, Peloton set out to deliver an immersive home-fitness experience by blending hardware, software and content.

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