Peloton Interactive (NASDAQ:PTON) Trading Down 5.7% - Here's Why

Key Points

• Peloton Interactive's stock fell by 5.7%, trading as low as $8.10, after closing at $9.00 previously, with a significant drop in trading volume.
• Analysts have mixed views, with eight rating the stock as a Buy and nine as a Hold, while the average price target is noted at $9.29.
• Insider trading activity revealed significant sales, with one insider selling 206,901 shares, representing a 21.90% decrease in their ownership.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) traded down 5.7% on Wednesday . The company traded as low as $8.10 and last traded at $8.49. 9,765,514 shares were traded during mid-day trading, a decline of 30% from the average session volume of 13,870,118 shares. The stock had previously closed at $9.00.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Macquarie raised their price objective on Peloton Interactive from $10.00 to $11.00 and gave the stock an "outperform" rating in a research note on Thursday, August 14th. Needham & Company LLC reaffirmed a "hold" rating on shares of Peloton Interactive in a research note on Thursday, August 7th. Truist Financial set a $11.00 price objective on shares of Peloton Interactive in a research report on Thursday, August 7th. Morgan Stanley raised their target price on shares of Peloton Interactive from $4.00 to $5.75 and gave the company an "equal weight" rating in a report on Monday, August 4th. Finally, The Goldman Sachs Group raised shares of Peloton Interactive from a "neutral" rating to a "buy" rating and upped their price target for the stock from $7.00 to $11.50 in a report on Friday, August 8th. Eight analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $9.29.

Peloton Interactive Stock Performance

The stock's 50 day moving average price is $7.73 and its 200 day moving average price is $6.93. The company has a market capitalization of $3.34 billion, a P/E ratio of -26.40, a price-to-earnings-growth ratio of 3.33 and a beta of 2.07.

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

Insider Activity at Peloton Interactive

In related news, insider Nick V. Caldwell sold 206,901 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The stock was sold at an average price of $7.78, for a total transaction of $1,609,689.78. Following the completion of the sale, the insider owned 737,788 shares of the company's stock, valued at $5,739,990.64. This trade represents a 21.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Dion C. Sanders sold 110,753 shares of the firm's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $8.05, for a total transaction of $891,561.65. The disclosure for this sale can be found here. Insiders have sold 1,842,992 shares of company stock worth $14,694,447 over the last quarter. 1.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On Peloton Interactive

Several hedge funds and other institutional investors have recently modified their holdings of the company. FNY Investment Advisers LLC bought a new position in shares of Peloton Interactive in the 1st quarter worth $37,000. Bessemer Group Inc. raised its holdings in Peloton Interactive by 1,602.6% during 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 last quarter. MAI Capital Management lifted its stake 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 valued at $38,000 after buying an additional 2,158 shares in the last quarter. Nisa Investment Advisors LLC grew its holdings in shares of Peloton Interactive by 40.2% during the first quarter. Nisa Investment Advisors LLC now owns 6,503 shares of the company's stock valued at $41,000 after buying an additional 1,864 shares during the last quarter. Finally, GAMMA Investing LLC grew its holdings in shares of Peloton Interactive by 1,082.5% during the first quarter. GAMMA Investing LLC now owns 8,159 shares of the company's stock valued at $52,000 after buying an additional 7,469 shares during the last quarter. Institutional investors own 77.01% of the company's stock.

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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