Peloton Interactive (NASDAQ:PTON) Rating Lowered to Hold at Zacks Investment Research

Peloton Interactive (NASDAQ:PTON) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday, Zacks.com reports.

According to Zacks, “Peloton Interactive creates fitness products. The brand’s content is accessible through the Peloton Bike, the Peloton Tread, and Peloton Digital, which provides a full slate of fitness offerings, anytime, anywhere, through IOS and Android as well as most tablets and computers. “

Other analysts have also issued research reports about the stock. Raymond James increased their price target on shares of Peloton Interactive from $109.00 to $135.00 and gave the stock an “outperform” rating in a research report on Friday, November 6th. Gordon Haskett initiated coverage on shares of Peloton Interactive in a research report on Friday, January 8th. They set a “buy” rating and a $190.00 price target on the stock. Bank of America increased their price target on shares of Peloton Interactive from $150.00 to $175.00 and gave the stock a “buy” rating in a research report on Wednesday. Roth Capital increased their price target on shares of Peloton Interactive from $125.00 to $140.00 in a research report on Friday, November 6th. Finally, The Goldman Sachs Group raised their target price on shares of Peloton Interactive from $144.00 to $162.00 and gave the company a “neutral” rating in a research report on Tuesday, December 22nd. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-five have assigned a buy rating to the company’s stock. Peloton Interactive currently has an average rating of “Buy” and an average price target of $133.69.

Shares of PTON opened at $167.42 on Thursday. Peloton Interactive has a 12 month low of $17.70 and a 12 month high of $169.00. The firm’s 50 day moving average is $136.20 and its 200-day moving average is $100.59. The stock has a market capitalization of $48.98 billion and a PE ratio of -117.90.

Peloton Interactive (NASDAQ:PTON) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.20 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.12 by $0.08. The business had revenue of $757.90 million for the quarter, compared to analyst estimates of $733.74 million. Peloton Interactive had a negative net margin of 3.93% and a negative return on equity of 4.54%. The firm’s revenue for the quarter was up 232.4% on a year-over-year basis. During the same quarter last year, the business posted ($1.29) EPS. As a group, sell-side analysts forecast that Peloton Interactive will post 0.25 EPS for the current year.

In related news, President William Lynch sold 169,424 shares of Peloton Interactive stock in a transaction on Monday, November 16th. The shares were sold at an average price of $100.11, for a total transaction of $16,961,036.64. Following the completion of the transaction, the president now owns 129,924 shares of the company’s stock, valued at $13,006,691.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Mariana Garavaglia sold 4,688 shares of Peloton Interactive stock in a transaction on Wednesday, October 28th. The stock was sold at an average price of $122.08, for a total transaction of $572,311.04. Following the transaction, the insider now directly owns 5,789 shares of the company’s stock, valued at approximately $706,721.12. The disclosure for this sale can be found here. Insiders have sold 597,197 shares of company stock valued at $70,605,456 in the last three months.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. FMR LLC increased its stake in Peloton Interactive by 402.5% in the second quarter. FMR LLC now owns 16,283,996 shares of the company’s stock valued at $940,726,000 after purchasing an additional 13,043,301 shares in the last quarter. Jennison Associates LLC bought a new stake in Peloton Interactive in the third quarter valued at $1,068,512,000. BlackRock Inc. increased its stake in Peloton Interactive by 104.5% in the third quarter. BlackRock Inc. now owns 8,422,961 shares of the company’s stock valued at $835,895,000 after purchasing an additional 4,304,190 shares in the last quarter. State Street Corp increased its stake in Peloton Interactive by 227.0% in the third quarter. State Street Corp now owns 2,759,501 shares of the company’s stock valued at $273,853,000 after purchasing an additional 1,915,676 shares in the last quarter. Finally, UBS Asset Management Americas Inc. increased its stake in Peloton Interactive by 344.7% in the third quarter. UBS Asset Management Americas Inc. now owns 1,598,991 shares of the company’s stock valued at $158,684,000 after purchasing an additional 1,239,450 shares in the last quarter. 59.54% of the stock is owned by institutional investors and hedge funds.

About Peloton Interactive

Peloton Interactive, Inc provides interactive fitness products in North America and internationally. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes.

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