Traders Purchase Large Volume of Call Options on Peloton Interactive (NASDAQ:PTON)

Peloton Interactive, Inc. (NASDAQ:PTON) saw some unusual options trading on Thursday. Traders bought 46,375 call options on the stock. This represents an increase of approximately 121% compared to the typical volume of 20,964 call options.

Insider Activity

In other news, insider Dion Sanders sold 112,512 shares of the company’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 transaction, the insider owned 18,801 shares of the company’s stock, valued at $102,465.45. This represents a 85.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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 that occurred on Monday, August 17th. The stock was sold at an average price of $5.35, for a total transaction 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 represents a 9.58% 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 sold a total of 182,061 shares of company stock valued at $989,779 in the last 90 days. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Peloton Interactive

Institutional investors and hedge funds have recently modified their holdings of the stock. Sequoia Financial Advisors LLC purchased a new position in Peloton Interactive in the 2nd quarter worth approximately $80,000. Engineers Gate Manager LP purchased a new stake in shares of Peloton Interactive during the second quarter valued at approximately $1,705,000. Allworth Financial LP lifted its position in shares of Peloton Interactive by 61.1% during the second quarter. Allworth Financial LP now owns 13,701 shares of the company’s stock worth $81,000 after purchasing an additional 5,194 shares in the last quarter. Nykredit A S acquired a new position in shares of Peloton Interactive during the second quarter worth $70,000. Finally, Corient Private Wealth LP lifted its position in shares of Peloton Interactive by 477.5% during the second quarter. Corient Private Wealth LP now owns 59,916 shares of the company’s stock worth $354,000 after purchasing an additional 49,541 shares in the last quarter. Hedge funds and other institutional investors own 77.01% of the company’s stock.

Peloton Interactive Stock Up 1.4%

PTON opened at $4.97 on Friday. Peloton Interactive has a 52-week low of $3.65 and a 52-week high of $9.20. The company has a 50 day moving average of $5.66 and a two-hundred day moving average of $5.29. The company has a market cap of $2.18 billion, a P/E ratio of 41.42, a P/E/G ratio of 0.39 and a beta of 2.52.

Peloton Interactive (NASDAQ:PTON) last issued its earnings results on Thursday, August 6th. The company reported $0.13 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.02. Peloton Interactive had a net margin of 2.58% and a negative return on equity of 23.92%. The business had revenue of $607.70 million for the quarter, compared to the consensus estimate of $596.60 million. During the same quarter last year, the firm posted $0.05 EPS. The business’s revenue for the quarter was up .1% compared to the same quarter last year. Research analysts anticipate that Peloton Interactive will post 0.31 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Morgan Stanley cut shares of Peloton Interactive from an “equal weight” rating to an “underweight” rating and lowered their price objective for the company from $5.00 to $4.50 in a research note on Tuesday, September 8th. Weiss Ratings upgraded Peloton Interactive from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, September 4th. UBS Group dropped their price target on Peloton Interactive from $11.00 to $10.00 and set a “buy” rating for the company in a research note on Tuesday, September 8th. Finally, Telsey Advisory Group restated a “market perform” rating on shares of Peloton Interactive in a report on Monday, August 3rd. Five investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $7.95.

About Peloton Interactive

Peloton Interactive, Inc is a connected fitness company that combines exercise equipment, digital technology and subscription-based content. Its products include the Peloton Bike and Bike+, Tread and Tread+, Row, and Peloton Guide, along with related accessories and apparel. The company also offers digital memberships that provide access to live and on-demand cycling, running, strength, yoga, meditation and other fitness classes.

Peloton sells its products through its website, retail channels and commercial partnerships, while its subscription services are available to owners of Peloton equipment and, through a separate offering, to customers using compatible third-party devices.