Peloton Interactive (NASDAQ:PTON) Shares Gap Down – What’s Next?

Peloton Interactive, Inc. (NASDAQ:PTON)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $5.40, but opened at $5.16. Peloton Interactive shares last traded at $5.1630, with a volume of 1,969,339 shares trading hands.

Analysts Set New Price Targets

Several brokerages have recently weighed in on PTON. Weiss Ratings raised shares of Peloton Interactive from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday. Morgan Stanley downgraded shares of Peloton Interactive from an “equal weight” rating to an “underweight” rating and set a $4.50 target price for the company. in a report on Tuesday. Wall Street Zen raised shares of Peloton Interactive from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Telsey Advisory Group restated a “market perform” rating on shares of Peloton Interactive in a research report on Monday, August 3rd. Finally, UBS Group restated a “buy” rating and set a $10.00 price objective (down from $11.00) on shares of Peloton Interactive in a report on Tuesday. Five equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Peloton Interactive currently has an average rating of “Hold” and a consensus target price of $7.95.

Peloton Interactive Trading Down 4.9%

The stock has a market capitalization of $2.25 billion, a P/E ratio of 42.80, a P/E/G ratio of 0.47 and a beta of 2.52. The business has a 50-day moving average price of $5.83 and a two-hundred day moving average price of $5.25.

Peloton Interactive (NASDAQ:PTON) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.02. The company had revenue of $607.70 million for the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same quarter last year, the business earned $0.05 earnings per share. On average, sell-side analysts forecast that Peloton Interactive, Inc. will post 0.28 earnings per share for the current fiscal year.

Insider Buying and Selling at Peloton Interactive

In other news, insider Dion C. Sanders sold 112,512 shares of the company’s stock in a transaction that occurred on 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. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Saqib Baig sold 36,439 shares of the company’s stock in a transaction that occurred 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 sale, the chief accounting officer directly owned 272,641 shares of the company’s stock, valued at approximately $1,461,355.76. This trade represents a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 182,061 shares of company stock valued at $989,779 in the last ninety days. 1.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC lifted its stake in Peloton Interactive by 232.0% during the second quarter. GAMMA Investing LLC now owns 4,399 shares of the company’s stock worth $26,000 after purchasing an additional 3,074 shares during the last quarter. Sankala Group LLC acquired a new stake in shares of Peloton Interactive in the 4th quarter valued at $31,000. Cora Capital Advisors LLC bought a new position in shares of Peloton Interactive in the 1st quarter valued at $43,000. Advisory Services Network LLC bought a new position in shares of Peloton Interactive in the 3rd quarter valued at $48,000. Finally, SummitTX Capital L.P. acquired a new position in shares of Peloton Interactive during the 1st quarter worth $50,000. 77.01% of the stock is currently owned by institutional investors and hedge funds.

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.