Peloton Interactive (NASDAQ:PTON) Trading Up 12.1% After Strong Earnings

Key Points

• Peloton Interactive's stock surged 12.1% to $7.92 after the company reported better-than-expected quarterly earnings, with earnings per share of $0.05, beating estimates by $0.11.
• Despite the positive earnings report, Peloton's revenue fell by 5.8% compared to the previous year.
• Insider selling has taken place, with COO and CFO recently selling shares, indicating a decrease in their holdings by over 36% and 37% respectively.

Shares of Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) rose 12.1% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $7.90 and last traded at $7.92. Approximately 13,816,114 shares were traded during mid-day trading, a decline of 2% from the average daily volume of 14,142,630 shares. The stock had previously closed at $7.07.

The company reported $0.05 EPS for the quarter, beating the consensus estimate of ($0.07) by $0.12. The company had revenue of $606.90 million for the quarter, compared to analysts' expectations of $580.29 million. The company's revenue for the quarter was down 5.8% on a year-over-year basis. During the same period in the prior year, the company earned ($0.08) earnings per share.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on PTON. JMP Securities reaffirmed a "market perform" rating on shares of Peloton Interactive in a research report on Monday, April 14th. Morgan Stanley lifted their price target on shares of Peloton Interactive from $4.00 to $5.75 and gave the company an "equal weight" rating in a research note on Monday, August 4th. Needham & Company LLC reaffirmed a "hold" rating on shares of Peloton Interactive in a report on Thursday. Deutsche Bank Aktiengesellschaft upgraded Peloton Interactive from a "hold" rating to a "buy" rating and set a $6.60 price objective on the stock in a research note on Monday, April 14th. Finally, Macquarie raised shares of Peloton Interactive from a "neutral" rating to an "outperform" rating and increased their price objective for the company from $9.00 to $10.00 in a research report on Tuesday, May 13th. Ten equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, Peloton Interactive currently has an average rating of "Hold" and a consensus price target of $8.73.

Insider Activity at Peloton Interactive

In other Peloton Interactive news, insider Dion C. Sanders sold 122,036 shares of the firm's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $6.25, for a total value of $762,725.00. Following the transaction, the insider directly owned 114,318 shares of the company's stock, valued at $714,487.50. This trade represents a 51.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Elizabeth F. Coddington sold 38,708 shares of the firm's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $6.96, for a total transaction of $269,407.68. Following the completion of the transaction, the chief financial officer directly owned 294,342 shares in the company, valued at $2,048,620.32. This trade represents a 11.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 576,585 shares of company stock worth $3,688,758. 1.34% of the stock is currently owned by company insiders.

Institutional Trading of Peloton Interactive

Hedge funds and other institutional investors have recently modified their holdings of the business. Townsquare Capital LLC grew its holdings in shares of Peloton Interactive by 6.5% in the fourth quarter. Townsquare Capital LLC now owns 19,280 shares of the company's stock valued at $168,000 after purchasing an additional 1,172 shares in the last quarter. Comerica Bank boosted its position in Peloton Interactive by 29.1% in the 4th quarter. Comerica Bank now owns 6,164 shares of the company's stock worth $54,000 after purchasing an additional 1,389 shares in the last quarter. Cetera Investment Advisers raised its stake in Peloton Interactive by 9.1% in the 4th quarter. Cetera Investment Advisers now owns 17,144 shares of the company's stock valued at $149,000 after purchasing an additional 1,432 shares during the last quarter. Federated Hermes Inc. grew its holdings in shares of Peloton Interactive by 0.3% during the 1st quarter. Federated Hermes Inc. now owns 533,820 shares of the company's stock worth $3,374,000 after purchasing an additional 1,643 shares during the period. Finally, Victory Capital Management Inc. raised its position in Peloton Interactive by 4.4% in the 1st quarter. Victory Capital Management Inc. now owns 43,944 shares of the company's stock valued at $278,000 after purchasing an additional 1,860 shares in the last quarter. 77.01% of the stock is owned by hedge funds and other institutional investors.

Peloton Interactive Stock Performance

The firm has a 50-day moving average price of $6.73 and a two-hundred day moving average price of $6.89. The firm has a market cap of $3.28 billion, a price-to-earnings ratio of -27.05 and a beta of 2.08.

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.