Peloton Interactive (NASDAQ:PTON) Shares Gap Up Following Strong Earnings

by · The Markets Daily

Peloton Interactive, Inc. (NASDAQ:PTON – Get Free Report)’s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $5.46, but opened at $5.98. Peloton Interactive shares last traded at $5.4240, with a volume of 4,505,183 shares changing hands.

The company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.08. The firm had revenue of $559.20 million for the quarter, compared to analysts’ expectations of $553.46 million. Peloton Interactive had a negative return on equity of 23.92% and a net margin of 2.58%. The business’s revenue was up 1.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.03 earnings per share.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on PTON shares. Morgan Stanley downgraded shares of Peloton Interactive from an “equal weight” rating to an “underweight” rating and reduced their price objective for the stock from $5.00 to $4.50 in a research note on Tuesday, September 8th. UBS Group lowered their price target on Peloton Interactive from $11.00 to $10.00 and set a “buy” rating on the stock in a research report on Tuesday, September 8th. Telsey Advisory Group reiterated a “market perform” rating on shares of Peloton Interactive in a research note on Monday, August 3rd. Canaccord Genuity Group decreased their target price on shares of Peloton Interactive from $10.00 to $8.00 and set a “buy” rating for the company in a research note on Friday, October 30th. Finally, The Goldman Sachs Group dropped their price target on shares of Peloton Interactive from $7.50 to $6.50 and set a “buy” rating on the stock in a research report on Monday, October 26th. Five equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $7.60.

Get Our Latest Stock Analysis on Peloton Interactive

Insider Activity

In other news, insider Dion C. Sanders sold 112,512 shares of the business’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $5.45, for a total transaction of $613,190.40. Following the completion of the transaction, the insider owned 18,801 shares of the company’s stock, valued at approximately $102,465.45. The trade was a 85.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 25,000 shares of the firm’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $5.35, for a total value of $133,750.00. Following the completion of the sale, the director directly owned 236,063 shares in the company, valued at $1,262,937.05. This trade represents a 9.58% decrease in their ownership of the stock. 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 217,712 shares of company stock valued at $1,177,289 in the last three months. Company insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Principal Financial Group Inc. boosted its stake in shares of Peloton Interactive by 10.2% in the 1st quarter. Principal Financial Group Inc. now owns 21,263 shares of the company’s stock valued at $91,000 after purchasing an additional 1,967 shares in the last quarter. NewEdge Advisors LLC increased its position 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 purchasing an additional 2,223 shares in the last quarter. GAMMA Investing LLC increased its position in Peloton Interactive by 58.9% during the 3rd quarter. GAMMA Investing LLC now owns 6,992 shares of the company’s stock worth $35,000 after purchasing an additional 2,593 shares in the last quarter. Wealthfront Advisers LLC lifted its stake in Peloton Interactive by 15.7% in the 1st quarter. Wealthfront Advisers LLC now owns 19,118 shares of the company’s stock valued at $82,000 after purchasing an additional 2,595 shares during the last quarter. Finally, Wedmont Private Capital lifted its stake in Peloton Interactive by 15.4% in the 3rd quarter. Wedmont Private Capital now owns 19,633 shares of the company’s stock valued at $97,000 after purchasing an additional 2,624 shares during the last quarter. Institutional investors and hedge funds own 77.01% of the company’s stock.

Peloton Interactive Price Performance

The business’s 50-day simple moving average is $5.12 and its two-hundred day simple moving average is $5.22. The stock has a market cap of $2.38 billion, a price-to-earnings ratio of 45.46, a price-to-earnings-growth ratio of 0.42 and a beta of 2.56.

About Peloton Interactive

(Get Free Report)

Peloton Interactive, Inc is a connected-fitness company that combines exercise equipment, digital content and subscription services. Its product portfolio includes the Peloton Bike, Bike+, Tread treadmill, Row rowing machine and related accessories, apparel and fitness products. The company’s equipment is designed to connect users with live and on-demand instructor-led workouts through integrated screens and digital platforms.

Peloton offers subscription memberships that provide access to classes in cycling, running, strength training, yoga, meditation, rowing and other fitness disciplines.

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