Zacks Research Upgrades Peloton Interactive (NASDAQ:PTON) to Strong-Buy

Peloton Interactive (NASDAQ:PTON) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued on Monday,Zacks.com reports.

A number of other research firms have also recently commented on PTON. Weiss Ratings reissued a “sell (d-)” rating on shares of Peloton Interactive in a research note on Friday, January 9th. Telsey Advisory Group restated a “market perform” rating and issued a $9.00 price objective on shares of Peloton Interactive in a research note on Monday, November 3rd. Citigroup dropped their price target on Peloton Interactive from $9.50 to $8.25 and set a “neutral” rating for the company in a research note on Thursday, November 20th. Macquarie upped their price target 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. Finally, Morgan Stanley increased their target price on shares of Peloton Interactive from $6.00 to $6.50 and gave the company an “equal weight” rating in a research note on Wednesday, November 19th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $9.86.

Peloton Interactive Price Performance

Shares of PTON stock traded down $0.06 during trading hours on Monday, reaching $5.82. The company had a trading volume of 1,277,613 shares, compared to its average volume of 9,763,187. Peloton Interactive has a 12 month low of $4.63 and a 12 month high of $10.25. The business has a fifty day simple moving average of $6.39 and a 200-day simple moving average of $7.14. The company has a market cap of $2.43 billion, a price-to-earnings ratio of -20.80, a price-to-earnings-growth ratio of 1.80 and a beta of 2.40.

Peloton Interactive (NASDAQ:PTON) last posted its quarterly earnings data on Thursday, November 6th. The company reported $0.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.02. The business had revenue of $550.80 million for the quarter, compared to the consensus estimate of $540.61 million. Peloton Interactive’s revenue for the quarter was down 6.0% compared to the same quarter last year. On average, equities research analysts expect that Peloton Interactive will post -0.36 earnings per share for the current year.

Insider Activity

In other Peloton Interactive news, 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 value of $306,435.75. Following the sale, the chief accounting officer directly owned 193,052 shares of the company’s stock, valued at approximately $1,399,627. This represents a 17.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Jennifer Cunningham Cotter sold 148,432 shares of the company’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $7.22, for a total value of $1,071,679.04. Following 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 disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,107,129 shares of company stock worth $7,708,694 in the last three months. 1.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in Peloton Interactive by 2.1% during the third quarter. Vanguard Group Inc. now owns 38,636,291 shares of the company’s stock worth $347,727,000 after buying an additional 811,585 shares in the last quarter. Eminence Capital LP bought a new stake in shares of Peloton Interactive in the 2nd quarter valued at approximately $112,681,000. Geode Capital Management LLC increased its holdings in shares of Peloton Interactive by 5.7% during the second quarter. Geode Capital Management LLC now owns 9,141,542 shares of the company’s stock valued at $63,450,000 after purchasing an additional 490,353 shares during the period. Goldman Sachs Group Inc. lifted its holdings 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 during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its holdings in shares of Peloton Interactive by 10.6% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 6,446,827 shares of the company’s stock worth $44,741,000 after purchasing an additional 615,647 shares during the period. Institutional investors and hedge funds own 77.01% of the company’s stock.

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.