Peloton Interactive (NASDAQ:PTON) Trading 8.6% Higher – Here’s What Happened

Shares of Peloton Interactive, Inc. (NASDAQ:PTON) shot up 8.6% during trading on Friday . The stock traded as high as $5.64 and last traded at $5.6250. 4,693,311 shares traded hands during mid-day trading, a decline of 65% from the average session volume of 13,392,664 shares. The stock had previously closed at $5.18.

Wall Street Analysts Forecast Growth

Several research firms recently commented on PTON. The Goldman Sachs Group raised their price target on shares of Peloton Interactive from $7.00 to $8.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Argus downgraded shares of Peloton Interactive from a “buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Bank of America set a $9.00 target price on shares of Peloton Interactive in a research report on Friday, January 30th. Wall Street Zen raised shares of Peloton Interactive from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Finally, Telsey Advisory Group cut their target price on shares of Peloton Interactive from $8.00 to $6.00 and set a “market perform” rating on the stock in a research report on Friday, February 6th. Five analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $8.25.

Peloton Interactive Price Performance

The stock’s fifty day simple moving average is $4.75 and its 200-day simple moving average is $5.48. The firm has a market cap of $2.49 billion, a PE ratio of 143.66, a PEG ratio of 0.89 and a beta of 2.50.

Peloton Interactive (NASDAQ:PTON) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.06 earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.01). The company had revenue of $630.90 million for the quarter, compared to analyst estimates of $618.25 million. Peloton Interactive had a negative return on equity of 6.95% and a net margin of 0.94%.The business’s revenue was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.12) earnings per share. Analysts expect that Peloton Interactive, Inc. will post 0.13 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Saqib Baig sold 29,075 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $5.27, for a total value of $153,225.25. Following the sale, the chief financial officer owned 250,019 shares of the company’s stock, valued at $1,317,600.13. This trade represents a 10.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nick V. Caldwell sold 42,632 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $3.86, for a total transaction of $164,559.52. Following the completion of the sale, the insider directly owned 880,956 shares in the company, valued at approximately $3,400,490.16. This trade represents a 4.62% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 250,498 shares of company stock valued at $1,218,082. 1.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Peloton Interactive

A number of institutional investors have recently modified their holdings of the business. Bank of America Corp DE increased its holdings in shares of Peloton Interactive by 11.7% in the 1st quarter. Bank of America Corp DE now owns 1,640,981 shares of the company’s stock valued at $7,040,000 after acquiring an additional 172,211 shares during the period. Altshuler Shaham Ltd acquired a new position in shares of Peloton Interactive in the 1st quarter valued at $1,585,000. Kanen Wealth Management LLC acquired a new stake in Peloton Interactive during the 1st quarter worth approximately $7,560,000. MSA Advisors LLC acquired a new stake in Peloton Interactive during the 1st quarter worth approximately $78,000. Finally, Amundi lifted its position in Peloton Interactive by 277.9% during the 1st quarter. Amundi now owns 55,010 shares of the company’s stock worth $236,000 after acquiring an additional 40,453 shares during the period. 77.01% of the stock is 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.