Peloton Interactive (NASDAQ:PTON) Shares Up 6.8% – Should You Buy?

Peloton Interactive, Inc. (NASDAQ:PTON)’s share price shot up 6.8% on Tuesday . The company traded as high as $4.15 and last traded at $4.1350. 2,654,225 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 12,999,755 shares. The stock had previously closed at $3.87.

Analyst Upgrades and Downgrades

PTON has been the subject of several analyst reports. Bank of America set a $9.00 price objective on Peloton Interactive in a report on Friday, January 30th. Morgan Stanley raised their price target on Peloton Interactive from $6.00 to $6.50 and gave the company an “equal weight” rating in a research note on Wednesday, November 19th. Truist Financial lowered their price target on Peloton Interactive from $12.00 to $9.00 and set a “buy” rating on the stock in a research report on Friday, February 6th. Telsey Advisory Group dropped their price objective on Peloton Interactive from $8.00 to $6.00 and set a “market perform” rating on the stock in a research note on Friday, February 6th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Peloton Interactive in a report on Friday, January 9th. Seven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $8.42.

Peloton Interactive Trading Down 1.9%

The company has a market capitalization of $1.72 billion, a P/E ratio of -31.15, a P/E/G ratio of 0.82 and a beta of 2.47. The company has a 50 day moving average price of $4.91 and a 200 day moving average price of $6.42.

Peloton Interactive (NASDAQ:PTON) last announced its quarterly earnings results on Thursday, February 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.02). During the same quarter last year, the business earned ($0.24) earnings per share. The company’s quarterly revenue was down 2.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Peloton Interactive, Inc. will post -0.36 EPS for the current fiscal year.

Insider Transactions at Peloton Interactive

In related news, CAO Saqib Baig sold 30,918 shares of Peloton Interactive stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $4.14, for a total transaction of $128,000.52. Following the completion of the sale, the chief accounting officer directly owned 219,781 shares of the company’s stock, valued at approximately $909,893.34. This trade represents a 12.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Nick V. Caldwell sold 75,762 shares of the company’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $7.00, for a total value of $530,334.00. Following the completion of the transaction, the insider directly owned 764,220 shares in the company, valued at approximately $5,349,540. This represents a 9.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,052,924 shares of company stock worth $4,823,092. 1.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Peloton Interactive

Several institutional investors and hedge funds have recently modified their holdings of the business. Sankala Group LLC acquired a new stake in Peloton Interactive in the 4th quarter worth about $31,000. MAI Capital Management raised its position in shares of Peloton Interactive by 64.6% in the second quarter. MAI Capital Management now owns 5,498 shares of the company’s stock valued at $38,000 after buying an additional 2,158 shares in the last quarter. Advisory Services Network LLC bought a new stake in shares of Peloton Interactive in the third quarter valued at approximately $48,000. Evolve Private Wealth LLC bought a new stake in shares of Peloton Interactive in the fourth quarter valued at approximately $62,000. Finally, NewEdge Advisors LLC grew its position in Peloton Interactive by 575.2% during the fourth quarter. NewEdge Advisors LLC now owns 10,182 shares of the company’s stock worth $63,000 after buying an additional 8,674 shares in the last quarter. 77.01% of the stock is currently owned by institutional investors and hedge funds.

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.