Wall Street Zen Upgrades Peloton Interactive (NASDAQ:PTON) to Buy

Peloton Interactive (NASDAQ:PTON) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday.

A number of other equities research analysts also recently commented on PTON. Macquarie lifted their price objective on Peloton Interactive from $11.00 to $12.00 and gave the company an “outperform” rating in a research report on Tuesday, November 11th. Telsey Advisory Group restated a “market perform” rating and issued a $8.00 price target on shares of Peloton Interactive in a report on Thursday. Zacks Research upgraded shares of Peloton Interactive from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Morgan Stanley raised 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, Truist Financial upped their price target on shares of Peloton Interactive from $11.00 to $12.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Peloton Interactive currently has an average rating of “Moderate Buy” and a consensus price target of $9.72.

Peloton Interactive Price Performance

NASDAQ:PTON opened at $5.59 on Friday. The firm has a market cap of $2.34 billion, a PE ratio of -19.96, a P/E/G ratio of 1.73 and a beta of 2.40. The firm has a 50 day simple moving average of $6.34 and a 200-day simple moving average of $7.12. Peloton Interactive has a 1-year low of $4.63 and a 1-year high of $10.25.

Peloton Interactive (NASDAQ:PTON) last released its earnings results on Thursday, November 6th. The company reported $0.03 EPS for the quarter, topping the consensus estimate of $0.01 by $0.02. The firm had revenue of $550.80 million during the quarter, compared to analysts’ expectations of $540.61 million. The firm’s quarterly revenue was down 6.0% on a year-over-year basis. As a group, sell-side analysts expect that Peloton Interactive will post -0.36 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Jennifer Cunningham Cotter sold 131,495 shares of the stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $6.64, for a total value of $873,126.80. Following the completion of the sale, the insider owned 100,269 shares in the company, valued at approximately $665,786.16. This trade represents a 56.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Elizabeth F. Coddington sold 21,820 shares of the company’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $6.31, for a total value of $137,684.20. Following the completion of the transaction, the chief financial officer owned 346,535 shares of the company’s stock, valued at approximately $2,186,635.85. This represents a 5.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,107,129 shares of company stock worth $7,708,694 in the last quarter. Insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Peloton Interactive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PTON. Vanguard Group Inc. boosted its position in Peloton Interactive by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 39,227,591 shares of the company’s stock valued at $241,642,000 after buying an additional 591,300 shares during the last quarter. Eminence Capital LP acquired a new position in shares of Peloton Interactive in the second quarter worth about $112,681,000. Geode Capital Management LLC lifted its stake in shares of Peloton Interactive by 5.7% in the second quarter. Geode Capital Management LLC now owns 9,141,542 shares of the company’s stock worth $63,450,000 after acquiring an additional 490,353 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings 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 valued at $44,598,000 after purchasing an additional 1,503,680 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. grew its stake in Peloton Interactive by 10.6% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 6,446,827 shares of the company’s stock valued at $44,741,000 after purchasing an additional 615,647 shares in the last quarter. Hedge funds and other institutional investors own 77.01% of the company’s stock.

Peloton Interactive News Summary

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

• Positive Sentiment: Telsey Advisory Group reaffirmed a “market perform” rating and set an $8 price target, signaling meaningful upside from current levels if Peloton executes. Telsey reaffirms market perform, $8 PT
• Positive Sentiment: The Motley Fool highlights that Peloton has reported positive net income and rising free cash flow in the last two quarters — a sign of improving profitability heading into the Feb. 5 earnings release. 1 Thing to Watch in Peloton’s Earnings on Feb. 5
• Neutral Sentiment: Analysts’ views are mixed across consumer cyclicals including Peloton, reflecting divergence on recovery timing and margin sustainability. Mixed analyst commentary can keep volatility elevated. Analysts’ Opinions Are Mixed
• Neutral Sentiment: Street calendars note Peloton is projected to report quarterly earnings on Feb. 5 — the upcoming print is the main near-term catalyst and could swing the stock depending on subscriber and guidance detail. Peloton Projected to Post Quarterly Earnings
• Negative Sentiment: Peloton announced plans to cut about 11% of its workforce as part of cost-cutting efforts. While layoffs reduce near-term expenses, they typically signal slowing growth or restructuring that may spook investors. Peloton cuts 11% of staff
• Negative Sentiment: Reporting highlights falling revenue and uncertainty around subscriber trends — the core business metric investors watch for recovery and sustained profitability. That pressure on top-line visibility is a key reason shares are under strain. Peloton Reset Faced With Falling Revenue

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.