Wall Street Zen Downgrades Peloton Interactive (NASDAQ:PTON) to Hold

Peloton Interactive (NASDAQ:PTON) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

A number of other equities analysts have also issued reports on the company. Macquarie Infrastructure increased their price objective on Peloton Interactive from $11.00 to $12.00 and gave the stock an “outperform” rating in a report on Tuesday, November 11th. UBS Group reiterated a “buy” rating on shares of Peloton Interactive in a research report on Tuesday, February 3rd. Telsey Advisory Group decreased their price target on Peloton Interactive from $8.00 to $6.00 and set a “market perform” rating for the company in a research note on Friday, February 6th. Morgan Stanley lifted their price objective 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. Finally, Zacks Research raised shares of Peloton Interactive from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $8.42.

Peloton Interactive Stock Performance

PTON stock opened at $4.25 on Friday. The stock’s fifty day moving average is $5.97 and its two-hundred day moving average is $7.01. The stock has a market capitalization of $1.78 billion, a price-to-earnings ratio of -32.69, a PEG ratio of 0.86 and a beta of 2.41. Peloton Interactive has a 1 year low of $4.09 and a 1 year 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 for the quarter, missing the consensus estimate 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 quarter in the previous year, the company posted ($0.24) EPS. The firm’s revenue was down 2.5% compared to the same quarter last year. As a group, analysts predict that Peloton Interactive will post -0.36 EPS for the current fiscal year.

Insider Buying and Selling at Peloton Interactive

In related news, insider Dion C. Sanders sold 124,047 shares of Peloton Interactive stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $7.22, for a total transaction of $895,619.34. Following the transaction, the insider directly owned 111,036 shares of the company’s stock, valued at $801,679.92. The trade was a 52.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Elizabeth F. Coddington sold 238,014 shares of the firm’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $7.18, for a total transaction of $1,708,940.52. Following the transaction, the chief financial officer owned 346,535 shares of the company’s stock, valued at approximately $2,488,121.30. This trade represents a 40.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 1,107,129 shares of company stock valued at $7,708,694. Corporate insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of PTON. Quinn Opportunity Partners LLC boosted its stake in shares of Peloton Interactive by 0.8% during the 4th quarter. Quinn Opportunity Partners LLC now owns 5,791,116 shares of the company’s stock worth $35,673,000 after acquiring an additional 44,667 shares in the last quarter. Bridgefront Capital LLC purchased a new stake in shares of Peloton Interactive during the fourth quarter valued at $417,000. Global Strategic Management Inc. acquired a new position in shares of Peloton Interactive in the 4th quarter valued at $490,000. Jacobs Levy Equity Management Inc. acquired a new position in shares of Peloton Interactive in the 4th quarter valued at $6,436,000. Finally, First Trust Advisors LP increased its stake in Peloton Interactive by 52.9% in the 4th quarter. First Trust Advisors LP now owns 700,702 shares of the company’s stock worth $4,316,000 after purchasing an additional 242,474 shares in the last quarter. Institutional investors own 77.01% of the company’s stock.

About Peloton Interactive

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.