Peloton Interactive Sees Unusually High Options Volume (NASDAQ:PTON)

Key Points

• Peloton Interactive saw unusually heavy options activity, with traders buying 40,595 call options on Wednesday, about 41% above its average call volume.
• Insider selling has been notable recently: COO Charles Peter Kirol and insider Dion C. Sanders both sold shares, and insiders have sold 196,047 shares worth about $1.0 million over the last three months.
• The stock traded near $5.70 and Peloton’s latest earnings slightly missed estimates, reporting EPS of $0.06 versus $0.07 expected, while Wall Street’s consensus rating remains Hold with an average price target of $8.25.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) saw unusually large options trading activity on Wednesday. Traders acquired 40,595 call options on the stock. This represents an increase of 41% compared to the average volume of 28,825 call options.

Insider Transactions at Peloton Interactive

In other news, COO Charles Peter Kirol sold 19,806 shares of the business's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $5.02, for a total value of $99,426.12. Following the completion of the transaction, the chief operating officer owned 125,112 shares of the company's stock, valued at $628,062.24. The trade was a 13.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Dion C. Sanders sold 112,523 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $5.19, for a total value 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. Insiders have sold a total of 196,047 shares of company stock valued at $1,024,633 over the last three months. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Peloton Interactive

Several hedge funds have recently added to or reduced their stakes in the business. Vident Advisory LLC grew its position in shares of Peloton Interactive by 1.1% during the 2nd quarter. Vident Advisory LLC now owns 110,258 shares of the company's stock worth $765,000 after purchasing an additional 1,180 shares in the last quarter. Cresset Asset Management LLC raised its position in shares of Peloton Interactive by 11.9% in the third quarter. Cresset Asset Management LLC now owns 12,748 shares of the company's stock valued at $115,000 after buying an additional 1,354 shares in the last quarter. Vise Technologies Inc. boosted its stake in shares of Peloton Interactive by 10.3% in the third quarter. Vise Technologies Inc. now owns 15,680 shares of the company's stock valued at $141,000 after buying an additional 1,466 shares during the period. Principal Financial Group Inc. boosted its stake in shares of Peloton Interactive by 10.2% in the first quarter. Principal Financial Group Inc. now owns 21,263 shares of the company's stock valued at $91,000 after buying an additional 1,967 shares during the period. Finally, NewEdge Advisors LLC increased its stake in Peloton Interactive by 21.8% during the 1st quarter. NewEdge Advisors LLC now owns 12,405 shares of the company's stock worth $53,000 after acquiring an additional 2,223 shares during the period. Institutional investors and hedge funds own 77.01% of the company's stock.

Peloton Interactive Price Performance

NASDAQ PTON traded up $0.26 during trading on Wednesday, reaching $5.70. 5,567,202 shares of the company's stock were exchanged, compared to its average volume of 13,841,140. The business has a 50 day moving average price of $5.49 and a 200-day moving average price of $5.29. The stock has a market capitalization of $2.47 billion, a P/E ratio of 142.41, a PEG ratio of 0.92 and a beta of 2.54. Peloton Interactive has a fifty-two week low of $3.65 and a fifty-two week high of $9.20.

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 net margin of 0.94% and a negative return on equity of 6.95%. During the same period in the prior year, the business posted ($0.12) earnings per share. The firm's quarterly revenue was up 1.1% compared to the same quarter last year. On average, analysts forecast that Peloton Interactive will post 0.13 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities research analysts have commented on PTON shares. Zacks Research cut shares of Peloton Interactive from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 24th. Wall Street Zen upgraded Peloton Interactive from a "hold" rating to a "buy" rating in a report on Saturday, May 16th. UBS Group reissued 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 research note on Tuesday, May 26th. Finally, Telsey Advisory Group reaffirmed a "market perform" rating on shares of Peloton Interactive in a research report on Wednesday, May 27th. Five investment 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. Based on data from MarketBeat, Peloton Interactive presently has an average rating of "Hold" and a consensus price target of $8.25.

About Peloton Interactive

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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