Peloton Interactive Target of Unusually High Options Trading (NASDAQ:PTON)

Peloton Interactive, Inc. (NASDAQ:PTON) was the target of unusually large options trading activity on Thursday. Stock traders acquired 68,007 call options on the stock. This is an increase of 76% compared to the average volume of 38,605 call options.

Peloton Interactive Stock Down 25.4%

Shares of PTON traded down $1.50 during mid-day trading on Thursday, hitting $4.41. 51,681,160 shares of the company’s stock were exchanged, compared to its average volume of 12,383,868. The stock has a market cap of $1.84 billion, a price-to-earnings ratio of -15.81, a P/E/G ratio of 1.33 and a beta of 2.41. The firm has a fifty day moving average of $6.28 and a two-hundred day moving average of $7.11. Peloton Interactive has a twelve month low of $4.30 and a twelve month high of $10.25.

Peloton Interactive (NASDAQ:PTON) last issued its quarterly earnings data on Thursday, February 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.02). The company had revenue of $656.50 million for the quarter, compared to analysts’ expectations of $675.04 million. During the same period in the previous year, the company earned ($0.24) EPS. The company’s quarterly revenue was down 2.5% compared to the same quarter last year. On average, equities analysts predict that Peloton Interactive will post -0.36 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Morgan Stanley lifted their target price on Peloton Interactive from $6.00 to $6.50 and gave the company an “equal weight” rating in a research note on Wednesday, November 19th. Weiss Ratings restated a “sell (d-)” rating on shares of Peloton Interactive in a report on Friday, January 9th. Macquarie upped their price objective on shares of Peloton Interactive from $11.00 to $12.00 and gave the company an “outperform” rating in a research note on Tuesday, November 11th. Citigroup decreased their target price on shares of Peloton Interactive from $9.50 to $8.25 and set a “neutral” rating for the company in a research note on Thursday, November 20th. Finally, Telsey Advisory Group reaffirmed a “market perform” rating and issued a $8.00 price target on shares of Peloton Interactive in a research note on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Peloton Interactive presently has a consensus rating of “Moderate Buy” and an average price target of $9.72.

Peloton Interactive News Roundup

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

• Positive Sentiment: Quarterly loss narrowed year-over-year (reported $(0.09) vs $(0.24) a year earlier), showing operating improvement despite the miss. MarketBeat: Earnings Release
• Neutral Sentiment: Analysts and commentators are parsing metric-level details versus estimates to assess durability of the turnaround; deeper readouts may affect near-term sentiment. Zacks: Q2 metrics vs estimates
• Neutral Sentiment: Pre-existing bearish analyses are circulating and may amplify selling pressure if investors revisit downside scenarios. InsiderMonkey: Bear case summary
• Neutral Sentiment: Unrelated industry CFO appointment (Palmetto) appeared in the feed and does not affect Peloton fundamentals. PR Newswire: Palmetto CFO
• Negative Sentiment: Earnings and revenue miss: Peloton reported EPS of $(0.09) vs. consensus near $(0.07) and revenue declined ~2.5% year-over-year, signaling weak holiday demand. Proactive Investors: Earnings miss & soft outlook
• Negative Sentiment: Soft forward guidance: Peloton guided Q3 revenue to $605–$625 million vs. consensus ~$638 million, increasing downside risk to estimates and investor expectations. (Company release / filings)
• Negative Sentiment: Memberships and subscriptions are declining, press reports cite continuing subscriber losses and management turnover (CFO departure noted), which pressures recurring revenue visibility. WSJ: Subscriptions decline & CFO leaves
• Negative Sentiment: New product strategy and price increases underperformed over the holiday season, reducing demand despite a product overhaul — cited by multiple outlets as a proximate cause of the miss. CNBC: Product overhaul failed to land
• Negative Sentiment: Market reaction: heavy trading and a sharp intra-day sell-off followed the reports as investors priced in weaker near-term growth and margin pressure. Barron’s: Stock falls after earnings

Insider Buying and Selling at Peloton Interactive

In related news, COO Charles Peter Kirol sold 22,520 shares of the company’s stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $6.47, for a total value of $145,704.40. Following the completion of the sale, the chief operating officer owned 81,001 shares in the company, valued at approximately $524,076.47. This represents a 21.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Nick V. Caldwell sold 25,135 shares of Peloton Interactive stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $7.00, for a total transaction of $175,945.00. Following the transaction, the insider owned 739,085 shares in the company, valued at approximately $5,173,595. The trade was a 3.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,107,129 shares of company stock valued at $7,708,694 over the last three months. 1.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Peloton Interactive

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada increased its position in Peloton Interactive by 342.6% in the 1st quarter. Royal Bank of Canada now owns 616,367 shares of the company’s stock worth $3,896,000 after buying an additional 477,106 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Peloton Interactive by 2.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 290,981 shares of the company’s stock worth $1,839,000 after acquiring an additional 6,921 shares during the last quarter. NewEdge Advisors LLC increased its position in Peloton Interactive by 3,132.6% during the first quarter. NewEdge Advisors LLC now owns 15,549 shares of the company’s stock worth $98,000 after acquiring an additional 15,068 shares during the period. Goldman Sachs Group Inc. raised its stake in Peloton Interactive by 27.1% during the 1st 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, Caxton Associates LLP acquired a new position in Peloton Interactive during the 1st quarter valued at $282,000. 77.01% of the stock is currently owned by institutional investors and hedge funds.

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.