Peloton Interactive (NASDAQ:PTON) Shares Up 4.3% - Time to Buy?

Key Points

• Peloton shares rose 4.3% to $5.53, although trading volume was 93% below the stock’s average session volume. The company has a $2.42 billion market capitalization and a beta of 2.52.
• Analyst sentiment remains mixed: five analysts rate Peloton a Buy, seven rate it Hold and one rates it Sell. The consensus rating is Hold, with a $7.94 average price target, while Goldman Sachs raised its target to $8.00.
• Peloton beat quarterly expectations with adjusted EPS of $0.13 versus estimates of $0.11 and revenue of $607.7 million versus $596.6 million expected. However, insiders sold 187,061 shares worth about $1.02 million over the past 90 days, even as institutions own 77.01% of the stock.

Peloton Interactive, Inc. (NASDAQ:PTON - Get Free Report) rose 4.3% on Friday . The company traded as high as $5.54 and last traded at $5.53. 901,990 shares traded hands during mid-day trading, a decline of 93% from the average session volume of 12,278,823 shares. The stock had previously closed at $5.30.

Analysts Set New Price Targets

Several brokerages recently issued reports on PTON. The Goldman Sachs Group upped their target price on shares of Peloton Interactive from $7.00 to $8.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. UBS Group reissued a "buy" rating on shares of Peloton Interactive in a report on Monday, June 15th. Wall Street Zen raised Peloton Interactive from a "hold" rating to a "buy" rating in a research note on Saturday, May 16th. Telsey Advisory Group reissued a "market perform" rating on shares of Peloton Interactive in a research note on Monday, August 3rd. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Peloton Interactive in a research report on Friday, August 21st. Five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $7.94.

Peloton Interactive Price Performance

The firm's 50 day moving average price is $5.87 and its 200 day moving average price is $5.20. The stock has a market capitalization of $2.42 billion, a P/E ratio of 45.92, a P/E/G ratio of 0.47 and a beta of 2.52.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.02. The company had revenue of $607.70 million for the quarter, compared to the consensus estimate of $596.60 million. Peloton Interactive had a negative return on equity of 23.92% and a net margin of 2.58%.Peloton Interactive's revenue was up .1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.05 EPS. On average, equities research analysts forecast that Peloton Interactive, Inc. will post 0.28 earnings per share for the current year.

Insider Transactions at Peloton Interactive

In other Peloton Interactive news, CAO Saqib Baig sold 36,439 shares of Peloton Interactive stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.36, for a total transaction of $195,313.04. Following the completion of the sale, the chief accounting officer directly owned 272,641 shares of the company's stock, valued at $1,461,355.76. The trade was a 11.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Dion C. Sanders sold 112,512 shares of the business's stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $5.45, for a total transaction of $613,190.40. Following the completion of the sale, the insider owned 18,801 shares of the company's stock, valued at approximately $102,465.45. This represents a 85.68% decrease in their position. 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 187,061 shares of company stock worth $1,018,079 in the last ninety days. Insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Peloton Interactive

Institutional investors have recently bought and sold shares of the business. Jackson Creek Investment Advisors LLC purchased a new position in shares of Peloton Interactive in the 4th quarter worth approximately $1,110,000. Vanguard Group Inc. increased its holdings in shares of Peloton Interactive by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 39,227,591 shares of the company's stock valued at $241,642,000 after acquiring an additional 591,300 shares during the last quarter. Ardmore Road Asset Management LP lifted its stake in Peloton Interactive by 187.9% in the first quarter. Ardmore Road Asset Management LP now owns 1,500,000 shares of the company's stock valued at $6,435,000 after buying an additional 979,058 shares during the last quarter. Bastion Asset Management Inc. purchased a new position in shares of Peloton Interactive during the first quarter worth approximately $7,020,000. Finally, Altshuler Shaham Ltd acquired a new position in Peloton Interactive in the first quarter valued at $1,585,000. 77.01% of the stock is owned by hedge funds and other institutional investors.

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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