Zacks Research Downgrades Peloton Interactive (NASDAQ:PTON) to Hold

Peloton Interactive (NASDAQ:PTON) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts also 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, February 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Peloton Interactive in a research report on Friday, January 9th. Macquarie Infrastructure raised their price target on Peloton Interactive from $11.00 to $12.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 11th. JPMorgan Chase & Co. dropped their price target on Peloton Interactive from $9.00 to $6.00 and set a “neutral” rating for the company in a research note on Friday, February 6th. Finally, Argus cut shares of Peloton Interactive from a “buy” rating to a “hold” rating in a research report on Tuesday, February 10th. Seven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $8.42.

Peloton Interactive Stock Up 2.0%

Shares of Peloton Interactive stock opened at $4.12 on Tuesday. The stock has a market capitalization of $1.75 billion, a price-to-earnings ratio of -31.69, a price-to-earnings-growth ratio of 0.80 and a beta of 2.41. Peloton Interactive has a twelve month low of $3.99 and a twelve month high of $9.20. The company has a 50-day simple moving average of $5.61 and a two-hundred day simple moving average of $6.85.

Peloton Interactive (NASDAQ:PTON) last announced its earnings results 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 business had revenue of $656.50 million for the quarter, compared to analysts’ expectations of $675.04 million. During the same quarter in the previous year, the firm posted ($0.24) EPS. The firm’s quarterly revenue was down 2.5% on a year-over-year basis. On average, sell-side analysts anticipate that Peloton Interactive will post -0.36 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Nick V. Caldwell sold 75,762 shares of the firm’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $7.00, for a total value of $530,334.00. Following the sale, the insider directly owned 764,220 shares of the company’s stock, valued at $5,349,540. This trade represents a 9.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Elizabeth F. Coddington sold 238,013 shares of Peloton Interactive stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $4.18, for a total value of $994,894.34. Following the completion of the transaction, the chief financial officer owned 346,535 shares in the company, valued at approximately $1,448,516.30. This represents a 40.72% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,079,910 shares of company stock worth $5,144,999. 1.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Peloton Interactive

A number of hedge funds have recently made changes to their positions in PTON. Bessemer Group Inc. grew its holdings in shares of Peloton Interactive by 1,602.6% during the 2nd quarter. Bessemer Group Inc. now owns 5,312 shares of the company’s stock valued at $37,000 after purchasing an additional 5,000 shares during the last quarter. MAI Capital Management boosted its position in Peloton Interactive by 64.6% in the second quarter. MAI Capital Management now owns 5,498 shares of the company’s stock valued at $38,000 after buying an additional 2,158 shares in the last quarter. Advisory Services Network LLC bought a new stake in shares of Peloton Interactive during the third quarter worth $48,000. Evolve Private Wealth LLC bought a new stake in shares of Peloton Interactive during the fourth quarter worth $62,000. Finally, NewEdge Advisors LLC increased its holdings in shares of Peloton Interactive by 575.2% during the fourth quarter. NewEdge Advisors LLC now owns 10,182 shares of the company’s stock worth $63,000 after buying an additional 8,674 shares in the last quarter. 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.