Peloton Interactive (NASDAQ:PTON) Raised to Buy at Wall Street Zen

Key Points

• Peloton Interactive has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, indicating a positive shift in investor sentiment.
• The company reported $0.05 EPS for the quarter, surpassing estimates, with revenue of $606.90 million, though this reflects a 5.8% year-over-year decline.
• Institutional investors have notably increased their holdings, with 77.01% of the company's stock now owned by these groups, signaling strong confidence in Peloton's future prospects.

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

PTON has been the topic of a number of other research reports. Truist Financial set a $11.00 target price on Peloton Interactive in a report on Thursday, August 7th. Needham & Company LLC reaffirmed a "hold" rating on shares of Peloton Interactive in a report on Thursday, August 7th. Telsey Advisory Group raised their price target on shares of Peloton Interactive from $8.00 to $9.00 and gave the stock a "market perform" rating in a research report on Thursday. Macquarie raised their price target on shares of Peloton Interactive from $10.00 to $11.00 and gave the stock an "outperform" rating in a research report on Thursday, August 14th. Finally, Canaccord Genuity Group restated a "buy" rating and issued a $10.00 price target on shares of Peloton Interactive in a research report on Thursday. Eight analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $9.36.

Peloton Interactive Stock Performance

Shares of PTON stock traded down $0.10 during trading hours on Friday, hitting $8.58. 13,389,574 shares of the company were exchanged, compared to its average volume of 13,513,800. Peloton Interactive has a one year low of $4.52 and a one year high of $10.90. The business's 50-day simple moving average is $7.86 and its two-hundred day simple moving average is $6.97. The stock has a market capitalization of $3.50 billion, a price-to-earnings ratio of -27.68, a P/E/G ratio of 3.33 and a beta of 2.27.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.05 EPS for the quarter, topping the consensus estimate of ($0.07) by $0.12. The company had revenue of $606.90 million for the quarter, compared to the consensus estimate of $580.29 million. During the same period in the previous year, the business posted ($0.08) EPS. The business's revenue for the quarter was down 5.8% on a year-over-year basis. Peloton Interactive has set its FY 2025 guidance at EPS. As a group, analysts anticipate that Peloton Interactive will post -0.36 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Elizabeth F. Coddington sold 238,664 shares of the business's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $7.85, for a total value of $1,873,512.40. Following the sale, the chief financial officer directly owned 346,535 shares in the company, valued at $2,720,299.75. The trade was a 40.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Nick V. Caldwell sold 206,901 shares of the company's stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $7.78, for a total value of $1,609,689.78. Following the completion of the transaction, the insider directly owned 737,788 shares in the company, valued at $5,739,990.64. This represents a 21.90% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,851,961 shares of company stock worth $14,775,168. 1.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Peloton Interactive

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in Peloton Interactive by 6.2% during the 1st quarter. Vanguard Group Inc. now owns 37,246,652 shares of the company's stock worth $235,399,000 after buying an additional 2,186,862 shares during the period. T. Rowe Price Investment Management Inc. raised its holdings in shares of Peloton Interactive by 29.4% during the first quarter. T. Rowe Price Investment Management Inc. now owns 21,760,678 shares of the company's stock valued at $137,528,000 after acquiring an additional 4,940,422 shares during the period. Eminence Capital LP acquired a new stake in shares of Peloton Interactive during the second quarter valued at approximately $112,681,000. Geode Capital Management LLC raised its holdings in shares of Peloton Interactive by 5.7% during the second quarter. Geode Capital Management LLC now owns 9,141,542 shares of the company's stock valued at $63,450,000 after acquiring an additional 490,353 shares during the period. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Peloton Interactive by 27.1% during the first quarter. Goldman Sachs Group Inc. now owns 7,056,642 shares of the company's stock valued at $44,598,000 after acquiring an additional 1,503,680 shares during the period. 77.01% of the stock is owned by institutional investors and hedge funds.

Peloton Interactive Company Profile

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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