Peloton Interactive (NASDAQ:PTON) Stock Breaks Below 200-Day Moving Average After Analyst Downgrade

Shares of Peloton Interactive, Inc. (NASDAQ:PTON) crossed below its 200-day moving average during trading on Monday after The Goldman Sachs Group lowered their price target on the stock from $7.50 to $6.50. The stock has a 200-day moving average of $5.27 and traded as low as $5.23. The Goldman Sachs Group currently has a buy rating on the stock. Peloton Interactive shares last traded at $5.25, with a volume of 5,737,280 shares trading hands.

Several other research analysts have also recently issued reports on the stock. UBS Group dropped their target price on shares of Peloton Interactive from $11.00 to $10.00 and set a “buy” rating on the stock in a report on Tuesday, September 8th. Telsey Advisory Group restated a “market perform” rating on shares of Peloton Interactive in a report on Monday, August 3rd. Morgan Stanley lowered shares of Peloton Interactive from an “equal weight” rating to an “underweight” rating and reduced their price target for the company from $5.00 to $4.50 in a report on Tuesday, September 8th. Finally, Weiss Ratings raised shares of Peloton Interactive from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, October 2nd. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $7.56.

Insider Activity

In other news, insider Dion Sanders sold 112,512 shares of the firm’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $5.45, for a total value of $613,190.40. Following the sale, the insider directly owned 18,801 shares in the company, valued at approximately $102,465.45. This trade represents a 85.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Saqib Baig sold 10,000 shares of Peloton Interactive stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $5.45, for a total transaction of $54,500.00. Following the completion of the transaction, the chief accounting officer directly owned 257,729 shares in the company, valued at approximately $1,404,623.05. The trade was a 3.74% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 217,712 shares of company stock valued at $1,177,289. Corporate insiders own 1.30% of the company’s stock.

Institutional Trading of Peloton Interactive

A number of institutional investors have recently made changes to their positions in PTON. Ardmore Road Asset Management LP increased its position in Peloton Interactive by 187.9% during the 1st quarter. Ardmore Road Asset Management LP now owns 1,500,000 shares of the company’s stock valued at $6,435,000 after buying an additional 979,058 shares in the last quarter. Technology Crossover Management IX Ltd. purchased a new stake in Peloton Interactive in the second quarter valued at about $21,727,601. Kanen Wealth Management LLC purchased a new stake in Peloton Interactive in the first quarter valued at about $7,560,000. Bastion Asset Management Inc. acquired a new stake in Peloton Interactive in the first quarter worth about $7,020,000. Finally, Altshuler Shaham Ltd acquired a new stake in Peloton Interactive in the first quarter worth about $1,585,000. Institutional investors and hedge funds own 77.01% of the company’s stock.

Peloton Interactive Price Performance

The firm has a market cap of $2.30 billion, a price-to-earnings ratio of 43.75, a P/E/G ratio of 0.42 and a beta of 2.54. The firm has a fifty day simple moving average of $5.15 and a two-hundred day simple moving average of $5.27.

Peloton Interactive (NASDAQ:PTON) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.02. Peloton Interactive had a net margin of 2.58% and a negative return on equity of 23.92%. The firm had revenue of $607.70 million for the quarter, compared to the consensus estimate of $596.60 million. During the same quarter in the prior year, the company posted $0.05 earnings per share. The company’s revenue for the quarter was up .1% compared to the same quarter last year. Equities analysts anticipate that Peloton Interactive, Inc. will post 0.31 earnings per share for the current fiscal year.

About Peloton Interactive

Peloton Interactive, Inc is a connected-fitness company that combines exercise equipment, digital content and subscription services. Its product portfolio includes the Peloton Bike, Bike+, Tread treadmill, Row rowing machine and related accessories, apparel and fitness products. The company’s equipment is designed to connect users with live and on-demand instructor-led workouts through integrated screens and digital platforms.

Peloton offers subscription memberships that provide access to classes in cycling, running, strength training, yoga, meditation, rowing and other fitness disciplines.