Peloton Interactive (NASDAQ:PTON) Stock Jumps 4.2% – Here’s Why

Peloton Interactive, Inc. (NASDAQ:PTON) traded up 4.2% during mid-day trading on Friday. The company traded as high as $5.80 and last traded at $5.7650. Approximately 601,130 shares changed hands during trading, a decline of 95% from the average session volume of 11,488,001 shares. The stock had previously closed at $5.53.

Analysts Set New Price Targets

PTON has been the subject of a number of recent analyst reports. Zacks Research upgraded Peloton Interactive from a “hold” rating to a “strong-buy” rating in a research note on Thursday, November 5th. UBS Group reissued a “buy” rating on shares of Peloton Interactive in a report on Thursday, November 5th. Morgan Stanley cut shares of Peloton Interactive from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $5.00 to $4.50 in a research report on Tuesday, September 8th. Wall Street Zen raised Peloton Interactive from a “buy” rating to a “strong-buy” rating in a report on Saturday, November 7th. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Peloton Interactive in a research report on Thursday, November 5th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Peloton Interactive has an average rating of “Hold” and an average target price of $7.11.

Peloton Interactive Stock Performance

The stock’s fifty day moving average is $5.17 and its two-hundred day moving average is $5.21. The firm has a market cap of $2.51 billion, a price-to-earnings ratio of 20.45, a PEG ratio of 0.44 and a beta of 2.56.

Peloton Interactive (NASDAQ:PTON) last posted its earnings results on Thursday, November 5th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.08. The firm had revenue of $559.20 million during the quarter, compared to analyst estimates of $553.46 million. Peloton Interactive had a net margin of 5.92% and a negative return on equity of 81.50%. Peloton Interactive’s revenue was up 1.5% on a year-over-year basis. During the same period in the previous year, the business posted $0.03 EPS. Sell-side analysts predict that Peloton Interactive, Inc. will post 0.36 earnings per share for the current year.

Insider Activity at Peloton Interactive

In other news, insider Dion C. Sanders sold 112,512 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $5.45, for a total value of $613,190.40. Following the completion of the transaction, the insider directly owned 18,801 shares in the company, valued at $102,465.45. This trade represents a 85.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Saqib Baig sold 10,000 shares of the stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $5.45, for a total value of $54,500.00. Following the transaction, the chief accounting officer directly owned 257,729 shares of the company’s stock, valued at approximately $1,404,623.05. The trade was a 3.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 ninety days. Company insiders own 1.23% of the company’s stock.

Institutional Trading of Peloton Interactive

A number of hedge funds and other institutional investors have recently made changes to their positions in PTON. Ardmore Road Asset Management LP raised its position in shares of Peloton Interactive by 187.9% during the first quarter. Ardmore Road Asset Management LP now owns 1,500,000 shares of the company’s stock worth $6,435,000 after purchasing an additional 979,058 shares during the period. Technology Crossover Management IX Ltd. purchased a new stake in shares of Peloton Interactive in the second quarter worth approximately $21,727,601. Kanen Wealth Management LLC acquired a new position in Peloton Interactive in the 1st quarter valued at approximately $7,560,000. Bastion Asset Management Inc. acquired a new stake in shares of Peloton Interactive during the 1st quarter valued at $7,020,000. Finally, Altshuler Shaham Ltd purchased a new position in shares of Peloton Interactive during the 1st quarter valued at $1,585,000. 77.01% of the stock is currently owned by institutional investors.

About Peloton Interactive

Peloton Interactive is a connected fitness company that combines exercise equipment, digital fitness content and subscription services. Founded in 2012, the company became known for bringing instructor-led workouts into members’ homes through internet-connected equipment. Its products include stationary bikes, treadmills and rowing machines, along with accessories and the Peloton app. Members can access live and on-demand classes across activities such as cycling, running, strength training, yoga and meditation; some classes are available without Peloton equipment.