Peloton Interactive (NASDAQ:PTON) Trading Down 4.6% After Analyst Downgrade

Peloton Interactive, Inc. (NASDAQ:PTON) shares were down 4.6% during trading on Monday after Argus downgraded the stock from a buy rating to a hold rating. The company traded as low as $4.44 and last traded at $4.4150. Approximately 2,808,068 shares were traded during trading, a decline of 80% from the average daily volume of 14,270,144 shares. The stock had previously closed at $4.63.

A number of other research analysts have also recently commented on the company. Truist Financial dropped 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. Wolfe Research set a $9.00 price objective on Peloton Interactive in a research note on Friday, January 30th. Wall Street Zen raised shares of Peloton Interactive from a “hold” rating to a “buy” rating in a report on Saturday, January 31st. Morgan Stanley increased their target price on shares of Peloton Interactive from $6.00 to $6.50 and gave the stock an “equal weight” rating in a research report on Wednesday, November 19th. Finally, Citigroup lowered their price target on shares of Peloton Interactive from $9.50 to $8.25 and set a “neutral” rating on the stock in a research report on Thursday, November 20th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Peloton Interactive has a consensus rating of “Hold” and an average price target of $8.78.

Insider Activity

In related news, CAO Saqib Baig sold 42,267 shares of Peloton Interactive stock in a transaction on Monday, November 17th. The stock was sold at an average price of $7.25, for a total transaction of $306,435.75. Following the completion of the sale, the chief accounting officer owned 193,052 shares of the company’s stock, valued at approximately $1,399,627. This trade represents a 17.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Nick V. Caldwell sold 75,762 shares of the 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 position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,107,129 shares of company stock worth $7,708,694. Company insiders own 1.30% of the company’s stock.

Institutional Trading of Peloton Interactive

Large investors have recently modified their holdings of the business. Vanguard Group Inc. raised its position in Peloton Interactive by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 39,227,591 shares of the company’s stock valued at $241,642,000 after purchasing an additional 591,300 shares during the last quarter. Eminence Capital LP purchased a new position in shares of Peloton Interactive during the second quarter valued at approximately $112,681,000. DNB Asset Management AS increased its stake in shares of Peloton Interactive by 142.4% during the fourth quarter. DNB Asset Management AS now owns 10,776,627 shares of the company’s stock valued at $66,384,000 after buying an additional 6,331,510 shares during the period. Geode Capital Management LLC raised its holdings in shares of Peloton Interactive by 3.9% during the fourth quarter. Geode Capital Management LLC now owns 9,741,115 shares of the company’s stock valued at $60,015,000 after acquiring an additional 369,614 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in Peloton Interactive by 27.1% in the first quarter. Goldman Sachs Group Inc. now owns 7,056,642 shares of the company’s stock worth $44,598,000 after acquiring an additional 1,503,680 shares during the period. 77.01% of the stock is owned by institutional investors.

Peloton Interactive Price Performance

The company has a market cap of $1.81 billion, a PE ratio of -33.38, a price-to-earnings-growth ratio of 0.99 and a beta of 2.41. The business has a 50 day moving average of $6.11 and a 200 day moving average of $7.06.

Peloton Interactive (NASDAQ:PTON) last issued its quarterly earnings data on Thursday, February 5th. The company reported ($0.09) EPS 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 company’s quarterly revenue was down 2.5% on a year-over-year basis. During the same period in the previous year, the business earned ($0.24) EPS. Sell-side analysts forecast that Peloton Interactive, Inc. will post -0.36 EPS for the current fiscal year.

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.