Peloton Interactive (NASDAQ:PTON) Shares Down 7.3% - Should You Sell?

Key Points

• Peloton Interactive's shares fell by 7.3% during trading, reaching a low of $7.87 and closing at $7.73.
• Analysts have varying ratings on Peloton, with a consensus rating of "Hold" and an average price target of $9.36, despite some upgrades from research firms.
• Insider sales have raised concerns, with notable transactions leading to a combined ownership decrease of over 20% for key executives.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) shares were down 7.3% during trading on Tuesday . The company traded as low as $7.87 and last traded at $7.73. Approximately 4,926,547 shares changed hands during trading, a decline of 65% from the average daily volume of 14,008,755 shares. The stock had previously closed at $8.34.

Analyst Ratings Changes

PTON has been the topic of several analyst reports. Telsey Advisory Group increased their target price on Peloton Interactive from $8.00 to $9.00 and gave the company a "market perform" rating in a research note on Thursday, October 2nd. Macquarie lifted their price objective on shares of Peloton Interactive from $10.00 to $11.00 and gave the stock an "outperform" rating in a research note on Thursday, August 14th. Morgan Stanley boosted their price objective 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. Truist Financial set a $11.00 price target on shares of Peloton Interactive in a research report on Thursday, August 7th. Finally, Wall Street Zen upgraded shares of Peloton Interactive from a "hold" rating to a "buy" rating in a research report on Friday. Eight investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $9.36.

Peloton Interactive Stock Down 10.7%

The firm has a 50 day simple moving average of $7.90 and a 200-day simple moving average of $6.98. The stock has a market cap of $3.04 billion, a P/E ratio of -24.05, a price-to-earnings-growth ratio of 3.30 and a beta of 2.27.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last issued its quarterly earnings data 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. The company had revenue of $606.90 million during the quarter, compared to the consensus estimate of $580.29 million. During the same period in the previous year, the company earned ($0.08) earnings per share. Peloton Interactive's revenue for the quarter was down 5.8% compared to the same quarter last year. Peloton Interactive has set its FY 2025 guidance at EPS. On average, equities analysts anticipate that Peloton Interactive, Inc. will post -0.36 earnings per share for the current year.

Insider Activity at Peloton Interactive

In related news, insider Nick V. Caldwell sold 206,901 shares of the company's stock in a transaction dated 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 transaction, the insider directly owned 737,788 shares in the company, valued at approximately $5,739,990.64. This represents a 21.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Charles Peter Kirol sold 8,969 shares of the business's stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $9.00, for a total transaction of $80,721.00. Following the completion of the sale, the chief operating officer directly owned 14,352 shares of the company's stock, valued at $129,168. This represents a 38.46% 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 valued at $14,775,168. 1.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Peloton Interactive

Institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its holdings in Peloton Interactive by 6.2% in the 1st quarter. Vanguard Group Inc. now owns 37,246,652 shares of the company's stock valued at $235,399,000 after buying an additional 2,186,862 shares during the period. T. Rowe Price Investment Management Inc. grew its position in Peloton Interactive by 29.4% in 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 last quarter. Eminence Capital LP bought a new position in shares of Peloton Interactive in the second quarter worth about $112,681,000. Geode Capital Management LLC boosted its stake in shares of Peloton Interactive by 5.7% in the 2nd quarter. Geode Capital Management LLC now owns 9,141,542 shares of the company's stock valued at $63,450,000 after purchasing an additional 490,353 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Peloton Interactive by 27.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 7,056,642 shares of the company's stock valued at $44,598,000 after purchasing an additional 1,503,680 shares during the last quarter. Institutional investors own 77.01% of the company's stock.

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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