Peloton Interactive (NASDAQ:PTON) Shares Down 5.8% – Should You Sell?

Shares of Peloton Interactive, Inc. (NASDAQ:PTON) traded down 5.8% during mid-day trading on Monday . The stock traded as low as $5.31 and last traded at $5.3050. Approximately 1,062,008 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 12,625,520 shares. The stock had previously closed at $5.63.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on PTON. UBS Group restated a “buy” rating on shares of Peloton Interactive in a research note on Monday, June 15th. The Goldman Sachs Group raised their price objective on shares of Peloton Interactive from $7.00 to $8.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Telsey Advisory Group reaffirmed a “market perform” rating on shares of Peloton Interactive in a research report on Monday, August 3rd. Wall Street Zen upgraded shares of Peloton Interactive from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. Finally, Weiss Ratings raised shares of Peloton Interactive from a “sell (d)” rating to a “sell (d+)” rating in a research report on Tuesday, May 26th. Five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $7.94.

Peloton Interactive Stock Performance

The firm has a 50 day moving average price of $5.92 and a two-hundred day moving average price of $5.21. The company has a market cap of $2.36 billion, a P/E ratio of 44.71, a P/E/G ratio of 0.36 and a beta of 2.52.

Peloton Interactive (NASDAQ:PTON) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.13 EPS for the quarter, topping 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 company had revenue of $607.70 million during the quarter, compared to the consensus estimate of $596.60 million. During the same period last year, the firm earned $0.05 EPS. Peloton Interactive’s revenue for the quarter was up .1% on a year-over-year basis. On average, sell-side analysts predict that Peloton Interactive, Inc. will post 0.31 EPS for the current fiscal year.

Insider Transactions at Peloton Interactive

In other news, insider Dion C. Sanders sold 112,523 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $5.19, for a total transaction of $583,994.37. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Saqib Baig sold 5,973 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $5.19, for a total value of $30,999.87. Following the transaction, the chief financial officer directly owned 244,046 shares in the company, valued at approximately $1,266,598.74. This represents a 2.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 131,694 shares of company stock valued at $691,299 over the last quarter. Company insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Peloton Interactive

A number of institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC lifted its stake in Peloton Interactive by 232.0% in the second quarter. GAMMA Investing LLC now owns 4,399 shares of the company’s stock worth $26,000 after purchasing an additional 3,074 shares during the last quarter. Sankala Group LLC bought a new position in shares of Peloton Interactive during the fourth quarter valued at about $31,000. Cora Capital Advisors LLC purchased a new position in shares of Peloton Interactive in the first quarter worth about $43,000. Advisory Services Network LLC purchased a new position in shares of Peloton Interactive in the third quarter worth about $48,000. Finally, SummitTX Capital L.P. bought a new stake in shares of Peloton Interactive in the 1st quarter valued at about $50,000. Hedge funds and other 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.