Peloton Interactive (NASDAQ:PTON) Rating Lowered to “Hold” at Wall Street Zen

Peloton Interactive (NASDAQ:PTON) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Sunday.

A number of other equities analysts have also commented on PTON. UBS Group restated a “buy” rating on shares of Peloton Interactive in a research note on Tuesday, February 3rd. Macquarie Infrastructure upped their target price on Peloton Interactive from $11.00 to $12.00 and gave the company an “outperform” rating in a research report on Tuesday, November 11th. JPMorgan Chase & Co. reduced their target price on Peloton Interactive from $9.00 to $6.00 and set a “neutral” rating on the stock in a report on Friday, February 6th. Citigroup decreased their price target on Peloton Interactive from $8.25 to $5.00 and set a “neutral” rating on the stock in a research report on Thursday, February 12th. Finally, Morgan Stanley upped their price objective on shares of Peloton Interactive from $6.00 to $6.50 and gave the stock an “equal weight” rating in a research report on Wednesday, November 19th. Seven research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $8.42.

Peloton Interactive Price Performance

NASDAQ PTON opened at $3.83 on Friday. The company has a market capitalization of $1.63 billion, a P/E ratio of -29.46, a P/E/G ratio of 0.76 and a beta of 2.47. Peloton Interactive has a 12-month low of $3.75 and a 12-month high of $9.20. The firm has a 50-day moving average price of $5.30 and a two-hundred day moving average price of $6.63.

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. Equities analysts expect that Peloton Interactive will post -0.36 EPS for the current year.

Insiders Place Their Bets

In other Peloton Interactive news, insider Jennifer Cunningham Cotter sold 154,497 shares of the stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $4.41, for a total transaction of $681,331.77. Following the transaction, the insider directly owned 100,269 shares in the company, valued at approximately $442,186.29. This represents a 60.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Saqib Baig sold 30,918 shares of the firm’s stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $4.14, for a total transaction of $128,000.52. Following the completion of the sale, the chief accounting officer owned 219,781 shares of the company’s stock, valued at $909,893.34. The trade was a 12.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,079,910 shares of company stock valued at $5,144,999 over the last quarter. Company insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Eminence Capital LP bought a new stake in shares of Peloton Interactive during the second quarter valued at approximately $112,681,000. DNB Asset Management AS grew its position in Peloton Interactive by 142.4% in the 4th quarter. DNB Asset Management AS now owns 10,776,627 shares of the company’s stock valued at $66,384,000 after purchasing an additional 6,331,510 shares during the period. Hennessy Advisors Inc. bought a new stake in Peloton Interactive during the 4th quarter valued at $30,533,000. Alyeska Investment Group L.P. raised its holdings in Peloton Interactive by 306.0% during the fourth quarter. Alyeska Investment Group L.P. now owns 5,462,344 shares of the company’s stock worth $33,648,000 after buying an additional 4,116,986 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Peloton Interactive during the fourth quarter valued at about $23,796,000. Institutional investors 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.