Peloton Interactive (NASDAQ:PTON) Shares Up 6.1% - Here's What Happened

Key Points

• Peloton Interactive (NASDAQ:PTON) shares rose by 6.1% during trading, reaching a last price of $7.93, despite a significant drop in trading volume.
• Multiple analysts have upgraded Peloton's stock ratings recently, with target prices ranging from $10.00 to $11.50, indicating increased confidence in the company's potential for profitability.
• The company reported a positive earnings surprise in its last quarterly results, posting earnings per share of $0.05, exceeding expectations, while revenue declined by 5.8% year-over-year.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report)'s share price shot up 6.1% during trading on Tuesday . The stock traded as high as $7.86 and last traded at $7.93. 5,906,011 shares changed hands during trading, a decline of 58% from the average session volume of 13,979,949 shares. The stock had previously closed at $7.47.

Analyst Ratings Changes

A number of research analysts have recently commented on PTON shares. UBS Group upgraded Peloton Interactive from a "neutral" rating to a "buy" rating and raised their target price for the company from $7.50 to $11.00 in a research note on Wednesday, July 30th. The Goldman Sachs Group reiterated a "buy" rating and set a $11.50 price objective on shares of Peloton Interactive in a research note on Thursday, October 2nd. Canaccord Genuity Group restated a "buy" rating and issued a $10.00 price target on shares of Peloton Interactive in a research note on Thursday, October 2nd. Wall Street Zen upgraded Peloton Interactive from a "hold" rating to a "buy" rating in a research note on Friday, October 3rd. Finally, Zacks Research upgraded Peloton Interactive from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 6th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $9.36.

Peloton Interactive Stock Up 5.9%

The stock has a market cap of $3.23 billion, a P/E ratio of -25.48, a price-to-earnings-growth ratio of 2.57 and a beta of 2.27. The business has a 50 day moving average price of $7.95 and a two-hundred day moving average price of $7.05.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.05 earnings per share for the quarter, topping analysts' consensus estimates of ($0.07) by $0.12. The business had revenue of $606.90 million during the quarter, compared to the consensus estimate of $580.29 million. During the same period last year, the company earned ($0.08) EPS. The business's revenue was down 5.8% on a year-over-year basis. Peloton Interactive has set its FY 2025 guidance at EPS. On average, research analysts forecast that Peloton Interactive, Inc. will post -0.36 earnings per share for the current year.

Insider Buying and Selling at Peloton Interactive

In other Peloton Interactive news, COO Charles Peter Kirol sold 20,554 shares of the company's stock in a transaction that occurred on Thursday, October 16th. The stock was sold at an average price of $7.57, for a total transaction of $155,593.78. Following the sale, the chief operating officer directly owned 50,308 shares in the company, valued at $380,831.56. This represents a 29.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Dion C. Sanders sold 110,753 shares of the company's stock in a transaction that occurred on Thursday, September 18th. The shares were sold at an average price of $8.05, for a total value of $891,561.65. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,851,882 shares of company stock valued at $14,798,917. Corporate insiders own 1.34% of the company's stock.

Institutional Investors Weigh In On Peloton Interactive

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PTON. Bessemer Group Inc. raised its holdings in shares of Peloton Interactive by 1,602.6% in the second quarter. Bessemer Group Inc. now owns 5,312 shares of the company's stock worth $37,000 after buying an additional 5,000 shares during the period. MAI Capital Management raised its holdings in shares of Peloton Interactive by 64.6% in the second quarter. MAI Capital Management now owns 5,498 shares of the company's stock worth $38,000 after buying an additional 2,158 shares during the period. Nisa Investment Advisors LLC raised its holdings in shares of Peloton Interactive by 40.2% in the first quarter. Nisa Investment Advisors LLC now owns 6,503 shares of the company's stock worth $41,000 after buying an additional 1,864 shares during the period. Farther Finance Advisors LLC raised its holdings in shares of Peloton Interactive by 158.3% in the third quarter. Farther Finance Advisors LLC now owns 7,986 shares of the company's stock worth $72,000 after buying an additional 4,894 shares during the period. Finally, GAMMA Investing LLC raised its holdings in shares of Peloton Interactive by 1,082.5% in the first quarter. GAMMA Investing LLC now owns 8,159 shares of the company's stock worth $52,000 after buying an additional 7,469 shares during the period. 77.01% of the stock is currently owned by hedge funds and other institutional investors.

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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