Peloton Interactive (NASDAQ:PTON) Hits New 12-Month Low Following Weak Earnings

Shares of Peloton Interactive, Inc. (NASDAQ:PTON) reached a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $4.30 and last traded at $4.5540, with a volume of 29055171 shares changing hands. The stock had previously closed at $5.91.

The company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.02). The business had revenue of $656.50 million for the quarter, compared to analyst estimates of $675.04 million. The firm’s quarterly revenue was down 2.5% on a year-over-year basis. During the same period last year, the business earned ($0.24) EPS.

Peloton Interactive News Roundup

Here are the key news stories impacting Peloton Interactive this week:

• Positive Sentiment: Truist kept a “buy” rating and cut its price target to $9, which still implies substantial upside from current levels — a signal that at least some analysts see recovery potential. Benzinga
• Positive Sentiment: Bull case: management’s cost cuts, subscription price increases and margin expansion are improving EBITDA and cash flow, which some investors view as de‑risking the turnaround despite soft top‑line trends. Seeking Alpha
• Positive Sentiment: Unusually large call‑option volume was noted (about 68,000 calls), indicating speculative bullish interest or hedging activity that can amplify intraday moves.
• Neutral Sentiment: Full Q2 earnings and conference call transcripts are available for detail review — useful for investors who want to parse management commentary on subscriptions, product cadence and delivery timing. Earnings Transcript (Yahoo)
• Negative Sentiment: Peloton reported Q2 revenue and EPS below expectations and issued revenue guidance below consensus, which prompted the initial sell‑off. Yahoo: Shares Tumble
• Negative Sentiment: CFO Liz Coddington is leaving for Palmetto, creating near‑term leadership uncertainty at a sensitive time for the turnaround. WSJ
• Negative Sentiment: Several firms trimmed price targets or ratings (JPMorgan lowered its PT to $6 and moved to neutral; Telsey cut to $6 and to market perform), reflecting reduced near‑term confidence among some analysts. Benzinga
• Negative Sentiment: Market reaction: steep intraday/near‑term selling followed the earnings print and weak outlook, amplified by commentary about declining subscription trends and slower equipment upgrades. Barron’s

Analyst Ratings Changes

A number of brokerages recently issued reports on PTON. Truist Financial reduced 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. Wall Street Zen raised Peloton Interactive from a “hold” rating to a “buy” rating in a report on Saturday, January 31st. Telsey Advisory Group decreased their price target on Peloton Interactive from $8.00 to $6.00 and set a “market perform” rating on the stock in a research report on Friday. Zacks Research raised shares of Peloton Interactive from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Peloton Interactive from $9.00 to $6.00 and set a “neutral” rating on the stock in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $9.26.

Insider Activity

In related news, insider Jennifer Cunningham Cotter sold 148,432 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $7.22, for a total transaction of $1,071,679.04. Following the completion of the transaction, the insider directly owned 231,764 shares in the company, valued at $1,673,336.08. This represents a 39.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Saqib Baig sold 42,267 shares of the stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $7.25, for a total transaction of $306,435.75. Following the completion of the transaction, the chief accounting officer directly owned 193,052 shares of the company’s stock, valued at approximately $1,399,627. The trade was a 17.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,107,129 shares of company stock valued at $7,708,694. Corporate insiders own 1.30% of the company’s stock.

Institutional Trading of Peloton Interactive

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada lifted its stake in shares of Peloton Interactive by 342.6% in the 1st quarter. Royal Bank of Canada now owns 616,367 shares of the company’s stock valued at $3,896,000 after acquiring an additional 477,106 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Peloton Interactive by 2.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 290,981 shares of the company’s stock worth $1,839,000 after purchasing an additional 6,921 shares in the last quarter. NewEdge Advisors LLC raised its position in Peloton Interactive by 3,132.6% in the first quarter. NewEdge Advisors LLC now owns 15,549 shares of the company’s stock valued at $98,000 after purchasing an additional 15,068 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Peloton Interactive by 27.1% during the first quarter. Goldman Sachs Group Inc. now owns 7,056,642 shares of the company’s stock valued at $44,598,000 after purchasing an additional 1,503,680 shares in the last quarter. Finally, Caxton Associates LLP acquired a new stake in shares of Peloton Interactive during the first quarter valued at about $282,000. Institutional investors own 77.01% of the company’s stock.

Peloton Interactive Price Performance

The company has a fifty day moving average price of $6.19 and a two-hundred day moving average price of $7.08. The company has a market capitalization of $1.93 billion, a P/E ratio of -35.62, a PEG ratio of 0.97 and a beta of 2.41.

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.