Peloton Interactive (NASDAQ:PTON) Shares Gap Down Following Weak Earnings

Peloton Interactive, Inc. (NASDAQ:PTON) shares gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $6.98, but opened at $6.30. Peloton Interactive shares last traded at $6.09, with a volume of 10,380,525 shares.

The company reported ($0.12) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.06). The firm had revenue of $624.00 million during the quarter, compared to analysts’ expectations of $620.39 million. During the same period in the previous year, the firm earned ($0.45) EPS. Peloton Interactive’s quarterly revenue was down 13.1% on a year-over-year basis.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on PTON. JMP Securities reissued a “market perform” rating on shares of Peloton Interactive in a report on Monday, April 14th. Argus raised Peloton Interactive from a “hold” rating to a “buy” rating and set a $15.00 target price on the stock in a research report on Tuesday, February 11th. Truist Financial raised shares of Peloton Interactive from a “hold” rating to a “buy” rating and set a $11.00 price target for the company in a research report on Monday, April 28th. Deutsche Bank Aktiengesellschaft raised shares of Peloton Interactive from a “hold” rating to a “buy” rating and set a $6.60 price objective on the stock in a report on Monday, April 14th. Finally, Morgan Stanley decreased their price target on shares of Peloton Interactive from $5.75 to $4.00 and set an “equal weight” rating on the stock in a research report on Thursday, April 17th. Fourteen equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $8.30.

Insiders Place Their Bets

In other news, insider Jennifer Cunningham Cotter sold 187,238 shares of Peloton Interactive stock in a transaction on Thursday, March 6th. The stock was sold at an average price of $6.45, for a total transaction of $1,207,685.10. Following the transaction, the insider now owns 100,269 shares in the company, valued at $646,735.05. The trade was a 65.12 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Nick V. Caldwell sold 68,727 shares of the business’s stock in a transaction dated Monday, March 17th. The shares were sold at an average price of $6.59, for a total transaction of $452,910.93. Following the completion of the transaction, the insider now owns 474,234 shares in the company, valued at $3,125,202.06. The trade was a 12.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 674,338 shares of company stock worth $5,522,838. Corporate insiders own 1.34% of the company’s stock.

Hedge Funds Weigh In On Peloton Interactive

Several hedge funds have recently bought and sold shares of the company. Y Intercept Hong Kong Ltd purchased a new stake in Peloton Interactive during the 4th quarter worth about $360,000. Rhumbline Advisers grew its position in shares of Peloton Interactive by 7.8% during the fourth quarter. Rhumbline Advisers now owns 479,134 shares of the company’s stock worth $4,168,000 after buying an additional 34,514 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Peloton Interactive by 3.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 4,136,182 shares of the company’s stock worth $35,985,000 after buying an additional 139,826 shares during the period. Franklin Resources Inc. acquired a new stake in Peloton Interactive in the third quarter valued at approximately $505,000. Finally, Raymond James Financial Inc. purchased a new position in Peloton Interactive in the fourth quarter worth approximately $1,158,000. Institutional investors and hedge funds own 77.01% of the company’s stock.

Peloton Interactive Stock Performance

The stock’s 50-day simple moving average is $6.20 and its 200 day simple moving average is $7.79. The company has a market capitalization of $2.40 billion, a PE ratio of -8.00 and a beta of 2.25.

About Peloton Interactive

Peloton Interactive, Inc operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names.