Peloton Interactive (NASDAQ:PTON) Shares Down 7.6% - Here's What Happened

Key Points

• Peloton shares fell 7.6% in Monday trading, dipping as low as $5.28 after closing at $5.69 on the prior session, with trading volume below its average.
• The decline came after a mixed earnings report: Peloton beat revenue expectations at $630.9 million, but missed EPS estimates by $0.01, reporting $0.06 per share.
• Analyst sentiment remains cautious, with a consensus Hold rating and an average price target of $8.25, while several firms recently trimmed targets or downgraded the stock.

Shares of Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) fell 7.6% during mid-day trading on Monday . The stock traded as low as $5.28 and last traded at $5.2550. 6,439,658 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 13,690,997 shares. The stock had previously closed at $5.69.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on PTON. Bank of America set a $9.00 target price on shares of Peloton Interactive in a report on Friday, January 30th. JPMorgan Chase & Co. dropped their target price on shares of Peloton Interactive from $9.00 to $6.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. The Goldman Sachs Group raised their target price on shares of Peloton Interactive from $7.00 to $8.00 and gave the stock a "buy" rating in a report on Friday. Wall Street Zen cut shares of Peloton Interactive from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Finally, Telsey Advisory Group dropped their price target on shares of Peloton Interactive from $8.00 to $6.00 and set a "market perform" rating on the stock in a research note on Friday, February 6th. Five equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $8.25.

Peloton Interactive Trading Down 6.7%

The company's 50 day moving average price is $4.47 and its two-hundred day moving average price is $5.64. The firm has a market cap of $2.26 billion, a PE ratio of 132.78, a PEG ratio of 0.98 and a beta of 2.50.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.06 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.01). The business had revenue of $630.90 million for the quarter, compared to analysts' expectations of $618.25 million. Peloton Interactive had a negative return on equity of 6.37% and a net margin of 0.94%.The company's revenue was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.12) EPS. Equities research analysts expect that Peloton Interactive, Inc. will post 0.13 earnings per share for the current fiscal year.

Insider Buying and Selling at Peloton Interactive

In other news, insider Dion C. Sanders sold 146,844 shares of Peloton Interactive stock in a transaction on Friday, February 20th. The shares were sold at an average price of $4.41, for a total transaction of $647,582.04. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Nick V. Caldwell sold 50,570 shares of Peloton Interactive stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $4.15, for a total transaction of $209,865.50. Following the transaction, the insider owned 807,847 shares in the company, valued at approximately $3,352,565.05. This trade represents a 5.89% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 949,584 shares of company stock worth $4,048,638. Insiders own 1.30% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PTON. Royal Bank of Canada lifted its stake in shares of Peloton Interactive by 342.6% during the 1st quarter. Royal Bank of Canada now owns 616,367 shares of the company's stock valued at $3,896,000 after buying an additional 477,106 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Peloton Interactive by 2.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 290,981 shares of the company's stock valued at $1,839,000 after buying an additional 6,921 shares in the last quarter. NewEdge Advisors LLC lifted its stake in shares of Peloton Interactive by 3,132.6% during the 1st quarter. NewEdge Advisors LLC now owns 15,549 shares of the company's stock valued at $98,000 after buying an additional 15,068 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake 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 buying an additional 1,503,680 shares in the last quarter. Finally, Caxton Associates LLP purchased a new position in shares of Peloton Interactive during the 1st quarter valued at $282,000. Hedge funds and other institutional investors own 77.01% of the company's stock.

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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