Peloton Interactive (NASDAQ:PTON) Shares Up 12.1% Following 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.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report)'s stock price shot up 12.1% during mid-day trading 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. 13,816,114 shares traded hands during mid-day trading, a decline of 2% from the average session volume of 14,142,630 shares. The stock had previously closed at $7.07.

The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.11. The business's revenue was down 5.8% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.08) earnings per share.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on PTON. Telsey Advisory Group reaffirmed a "market perform" rating on shares of Peloton Interactive in a research report on Thursday. Needham & Company LLC reaffirmed a "hold" rating on shares of Peloton Interactive in a research report on Thursday. Morgan Stanley upped 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 report on Monday. JMP Securities reaffirmed a "market perform" rating on shares of Peloton Interactive in a research report on Monday, April 14th. Finally, Bank of America reduced their price target on shares of Peloton Interactive from $11.50 to $9.50 and set a "buy" rating for the company in a research report on Tuesday, April 15th. Eleven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat, Peloton Interactive presently has a consensus rating of "Hold" and a consensus target price of $8.46.

Insiders Place Their Bets

In other Peloton Interactive news, COO Charles Peter Kirol sold 20,633 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $6.39, for a total value of $131,844.87. Following the completion of the transaction, the chief operating officer directly owned 35,877 shares in the company, valued at $229,254.03. This represents a 36.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Elizabeth F. Coddington sold 185,661 shares of the company's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $6.29, for a total value of $1,167,807.69. Following the completion of the transaction, the chief financial officer owned 311,231 shares of the company's stock, valued at $1,957,642.99. The trade was a 37.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 576,585 shares of company stock worth $3,688,758 over the last ninety days. 1.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Russell Investments Group Ltd. boosted its position in shares of Peloton Interactive by 969.6% during the 4th quarter. Russell Investments Group Ltd. now owns 4,011 shares of the company's stock valued at $35,000 after acquiring an additional 3,636 shares during the last quarter. FNY Investment Advisers LLC bought a new position in shares of Peloton Interactive during the 1st quarter valued at approximately $37,000. Bessemer Group Inc. boosted its position in shares of Peloton Interactive by 1,602.6% during the 2nd quarter. Bessemer Group Inc. now owns 5,312 shares of the company's stock valued at $37,000 after acquiring an additional 5,000 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Peloton Interactive by 40.2% during the 1st quarter. Nisa Investment Advisors LLC now owns 6,503 shares of the company's stock valued at $41,000 after acquiring an additional 1,864 shares during the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of Peloton Interactive by 1,082.5% during the 1st quarter. GAMMA Investing LLC now owns 8,159 shares of the company's stock valued at $52,000 after acquiring an additional 7,469 shares during the last quarter. 77.01% of the stock is currently owned by institutional investors.

Peloton Interactive Trading Up 6.4%

The stock has a market capitalization of $2.93 billion, a P/E ratio of -17.11 and a beta of 2.08. The business has a 50-day moving average price of $6.72 and a 200 day moving average price of $6.92.

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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