Peloton Interactive (NASDAQ:PTON) Stock Rating Raised to Strong-Buy at Wall Street Zen

Peloton Interactive (NASDAQ:PTON) was upgraded by analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a report released on Saturday, Wall Street Zen reports.

A number of other equities research analysts also recently weighed in on PTON. Morgan Stanley downgraded Peloton Interactive from an “equal weight” rating to an “underweight” rating and decreased their price objective for the company from $5.00 to $4.50 in a report on Tuesday, September 8th. Canaccord Genuity Group cut their price target on Peloton Interactive from $10.00 to $8.00 and set a “buy” rating on the stock in a research note on Friday, October 30th. UBS Group reissued a “buy” rating on shares of Peloton Interactive in a research report on Thursday. Weiss Ratings raised Peloton Interactive from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, October 2nd. Finally, Telsey Advisory Group reaffirmed a “market perform” rating on shares of Peloton Interactive in a research note on Friday. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $7.60.

Peloton Interactive Trading Down 0.9%

PTON opened at $5.61 on Friday. Peloton Interactive has a 12-month low of $3.65 and a 12-month high of $7.92. The stock has a market capitalization of $2.46 billion, a P/E ratio of 44.17, a PEG ratio of 0.42 and a beta of 2.56. The stock has a 50-day moving average price of $5.13 and a 200-day moving average price of $5.21.

Peloton Interactive (NASDAQ:PTON) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.08. Peloton Interactive had a negative return on equity of 23.92% and a net margin of 2.58%. The business had revenue of $559.20 million during the quarter, compared to analyst estimates of $553.46 million. During the same quarter in the previous year, the company posted $0.03 earnings per share. Peloton Interactive’s revenue for the quarter was up 1.5% on a year-over-year basis. On average, equities research analysts predict that Peloton Interactive will post 0.31 EPS for the current year.

Insider Activity at Peloton Interactive

In related news, Director Karen Boone sold 25,000 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.35, for a total transaction of $133,750.00. Following the sale, the director owned 236,063 shares of the company’s stock, valued at $1,262,937.05. This trade represents a 9.58% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Charles Kirol sold 28,849 shares of the company’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $5.33, for a total value of $153,765.17. Following the completion of the sale, the chief operating officer owned 197,334 shares of the company’s stock, valued at approximately $1,051,790.22. This trade represents a 12.75% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 217,712 shares of company stock worth $1,177,289 over the last 90 days. 1.30% of the stock is owned by corporate insiders.

Institutional Trading of Peloton Interactive

Several institutional investors have recently added to or reduced their stakes in the business. Principal Financial Group Inc. lifted its position in Peloton Interactive by 10.2% in the first quarter. Principal Financial Group Inc. now owns 21,263 shares of the company’s stock worth $91,000 after buying an additional 1,967 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Peloton Interactive by 21.8% in the 1st quarter. NewEdge Advisors LLC now owns 12,405 shares of the company’s stock worth $53,000 after purchasing an additional 2,223 shares during the last quarter. GAMMA Investing LLC lifted its stake in Peloton Interactive by 58.9% in the 3rd quarter. GAMMA Investing LLC now owns 6,992 shares of the company’s stock worth $35,000 after acquiring an additional 2,593 shares in the last quarter. Wealthfront Advisers LLC lifted its holdings in shares of Peloton Interactive by 15.7% during the 1st quarter. Wealthfront Advisers LLC now owns 19,118 shares of the company’s stock worth $82,000 after acquiring an additional 2,595 shares during the period. Finally, Wedmont Private Capital grew its holdings in shares of Peloton Interactive by 15.4% in the 3rd quarter. Wedmont Private Capital now owns 19,633 shares of the company’s stock valued at $97,000 after buying an additional 2,624 shares during the period. 77.01% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Peloton Interactive

Here are the key news stories impacting Peloton Interactive this week:

• Positive Sentiment: Fiscal Q1 2027 earnings beat estimates: adjusted EPS was $0.19 versus $0.11 expected, while revenue of $559.2 million also topped consensus. Gross margin reached 61.3% and adjusted EBITDA was $168 million. Earnings call highlights
• Positive Sentiment: Cash flow and balance-sheet progress were notable: operating cash flow rose to $146 million, Peloton reported a net cash position, and it reduced gross principal debt by nearly $500 million in calendar 2026. Management is targeting at least $350 million in fiscal 2027 free cash flow. Fiscal 2027 outlook
• Positive Sentiment: Zacks added PTON to its Rank #1 (Strong Buy) list, and an analyst-consensus article pointed to potential upside from price targets and improving earnings estimates. These are supportive signals, though price targets are not reliable predictors. Zacks Strong Buy list
• Neutral Sentiment: Telsey reiterated its Market Perform rating, signaling a more cautious view despite the earnings beat. Telsey rating
• Negative Sentiment: Fiscal 2027 revenue guidance of $2.3 billion–$2.4 billion falls short of the $2.4 billion consensus at the midpoint, and management expects a modest full-year revenue decline amid continued subscription pressure. Q2 guidance of $625 million–$650 million also spans below the $635.4 million consensus at its low end. Earnings call highlights
• Negative Sentiment: Put-option buying was unusually elevated Friday, up about 251% versus its average volume, suggesting increased demand for downside protection or bearish speculation.

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.