Peloton Interactive (NASDAQ:PTON) Shares Gap Up - Here's What Happened

Key Points

• Shares gapped up — Peloton opened at $5.46 after closing at $5.18 and last traded around $5.25 on heavy volume.
• Missed quarterly expectations — the company reported ($0.09) EPS versus ($0.07) expected and revenue of $656.5M versus $675M expected, with revenue down 2.5% year-over-year and a negative P/E.
• Mixed ownership and analyst view — insiders sold roughly 934,584 shares (~$3.97M) over three months while institutions like Goldman Sachs and RBC increased positions, and analysts have a consensus "Hold" rating with a $8.60 price target.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $5.18, but opened at $5.46. Peloton Interactive shares last traded at $5.2520, with a volume of 4,549,455 shares trading hands.

Wall Street Analyst Weigh In

Several analysts have recently commented on PTON shares. Zacks Research downgraded Peloton Interactive from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 24th. Telsey Advisory Group reduced their target price on Peloton Interactive from $8.00 to $6.00 and set a "market perform" rating for the company in a research note on Friday, February 6th. UBS Group restated a "buy" rating on shares of Peloton Interactive in a research note on Tuesday, February 3rd. Wall Street Zen downgraded Peloton Interactive from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Finally, Argus downgraded Peloton Interactive from a "buy" rating to a "hold" rating in a research note on Tuesday, February 10th. 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 company's stock. Based on data from MarketBeat.com, Peloton Interactive presently has an average rating of "Hold" and a consensus price target of $8.60.

Peloton Interactive Stock Performance

The firm has a market cap of $2.27 billion, a price-to-earnings ratio of -41.08, a P/E/G ratio of 0.85 and a beta of 2.37. The business has a 50 day simple moving average of $4.32 and a 200-day simple moving average of $5.74.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.02). The business had revenue of $656.50 million during the quarter, compared to analyst estimates of $675.04 million. During the same period in the prior year, the business earned ($0.24) EPS. The business's revenue was down 2.5% on a year-over-year basis. As a group, research analysts anticipate that Peloton Interactive, Inc. will post 0.14 earnings per share for the current year.

Insider Transactions at Peloton Interactive

In other news, insider Dion C. Sanders sold 146,844 shares of the business's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $4.41, for a total value of $647,582.04. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Elizabeth F. Coddington sold 238,013 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $4.18, for a total value of $994,894.34. Following the completion of the transaction, the chief financial officer owned 346,535 shares in the company, valued at $1,448,516.30. The trade was a 40.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 934,584 shares of company stock worth $3,966,138. 1.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Peloton Interactive

Hedge funds and other institutional investors have recently modified their holdings of the business. Royal Bank of Canada raised 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 purchasing an additional 477,106 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised 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 purchasing an additional 6,921 shares during the period. NewEdge Advisors LLC raised 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 purchasing an additional 15,068 shares during the period. Goldman Sachs Group Inc. raised 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 purchasing an additional 1,503,680 shares during the period. Finally, Caxton Associates LLP bought a new stake in shares of Peloton Interactive in the 1st quarter worth approximately $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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