Peloton Interactive (NASDAQ:PTON) Shares Up 6.6% - Time to Buy?

Key Points

• Peloton shares rose 6.6% on Monday, trading as high as $6.51 after closing at $6.12, though volume was well below average.
• Analyst sentiment is mixed but slightly constructive: Goldman Sachs raised its price target to $8 and several firms maintain Buy ratings, while the consensus rating remains Hold with an average target of $8.25.
• Recent earnings showed modest improvement but still missed expectations, as Peloton reported $0.06 EPS versus the $0.07 estimate and revenue grew 1.1% year over year; insiders have also been selling shares recently.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) traded up 6.6% on Monday . The company traded as high as $6.51 and last traded at $6.5220. 2,415,216 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 13,164,085 shares. The stock had previously closed at $6.12.

Wall Street Analysts Forecast Growth

PTON has been the subject of a number of recent research reports. The Goldman Sachs Group lifted their price objective on Peloton Interactive from $7.00 to $8.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Telsey Advisory Group reissued a "market perform" rating on shares of Peloton Interactive in a research report on Wednesday, May 27th. UBS Group restated a "buy" rating on shares of Peloton Interactive in a research report on Monday, June 15th. Weiss Ratings upgraded Peloton Interactive from a "sell (d)" rating to a "sell (d+)" rating in a report on Tuesday, May 26th. Finally, Wall Street Zen raised Peloton Interactive from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Five analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $8.25.

Peloton Interactive Trading Up 5.8%

The firm has a market capitalization of $2.80 billion, a price-to-earnings ratio of 162.17, a price-to-earnings-growth ratio of 0.45 and a beta of 2.52. The firm has a 50 day moving average price of $5.75 and a two-hundred day moving average price of $5.24.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.01). Peloton Interactive had a negative return on equity of 6.95% and a net margin of 0.94%.During the same quarter in the previous year, the company earned ($0.12) EPS. The firm's revenue was up 1.1% compared to the same quarter last year. As a group, research analysts forecast that Peloton Interactive, Inc. will post 0.13 earnings per share for the current year.

Insiders Place Their Bets

In other Peloton Interactive news, CFO Saqib Baig sold 29,075 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $5.27, for a total transaction of $153,225.25. Following the completion of the sale, the chief financial officer owned 250,019 shares in the company, valued at $1,317,600.13. This trade represents a 10.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Dion C. Sanders sold 112,523 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $5.19, for a total transaction of $583,994.37. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 172,571 shares of company stock worth $906,269. Corporate insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Peloton Interactive

Several large investors have recently modified their holdings of PTON. DNB Asset Management AS increased its stake in Peloton Interactive by 142.4% during the fourth quarter. DNB Asset Management AS now owns 10,776,627 shares of the company's stock valued at $66,384,000 after purchasing an additional 6,331,510 shares during the last quarter. Pale Fire Capital SE bought a new position in shares of Peloton Interactive in the 1st quarter worth about $26,746,000. Hennessy Advisors Inc. acquired a new position in shares of Peloton Interactive in the 4th quarter valued at about $30,533,000. Alyeska Investment Group L.P. boosted its holdings in shares of Peloton Interactive by 306.0% in the 4th quarter. Alyeska Investment Group L.P. now owns 5,462,344 shares of the company's stock valued at $33,648,000 after buying an additional 4,116,986 shares during the period. Finally, Norges Bank bought a new stake in shares of Peloton Interactive during the 4th quarter valued at about $23,796,000. 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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