Peloton Interactive (NASDAQ:PTON) Shares Gap Down – Time to Sell?

Peloton Interactive, Inc. (NASDAQ:PTON) shares gapped down prior to trading on Tuesday . The stock had previously closed at $5.40, but opened at $5.16. Peloton Interactive shares last traded at $5.1630, with a volume of 1,969,339 shares traded.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on PTON shares. Wall Street Zen raised shares of Peloton Interactive from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. UBS Group reaffirmed a “buy” rating and set a $10.00 price objective (down from $11.00) on shares of Peloton Interactive in a research note on Tuesday. Morgan Stanley lowered Peloton Interactive from an “equal weight” rating to an “underweight” rating and set a $4.50 target price on the stock. in a report on Tuesday. Weiss Ratings raised Peloton Interactive from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday. Finally, Telsey Advisory Group restated a “market perform” rating on shares of Peloton Interactive in a report on Monday, August 3rd. Five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Peloton Interactive has an average rating of “Hold” and an average target price of $7.95.

Peloton Interactive Stock Down 4.9%

The company’s fifty day moving average is $5.83 and its 200 day moving average is $5.25. The firm has a market cap of $2.25 billion, a price-to-earnings ratio of 42.80, a PEG ratio of 0.47 and a beta of 2.52.

Peloton Interactive (NASDAQ:PTON) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.02. The company had revenue of $607.70 million during the quarter, compared to the consensus estimate of $596.60 million. Peloton Interactive had a net margin of 2.58% and a negative return on equity of 23.92%. The company’s quarterly revenue was up .1% on a year-over-year basis. During the same period in the prior year, the business posted $0.05 EPS. On average, equities research analysts forecast that Peloton Interactive, Inc. will post 0.28 EPS for the current fiscal year.

Insider Buying and Selling at Peloton Interactive

In other news, Director Karen Boone sold 25,000 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $5.35, for a total value of $133,750.00. Following the completion of the sale, the director owned 236,063 shares of the company’s stock, valued at approximately $1,262,937.05. This represents a 9.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Saqib Baig sold 36,439 shares of the business’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.36, for a total transaction of $195,313.04. Following the transaction, the chief accounting officer owned 272,641 shares in the company, valued at approximately $1,461,355.76. The trade was a 11.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 182,061 shares of company stock worth $989,779 over the last ninety days. 1.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of PTON. GAMMA Investing LLC grew its holdings in Peloton Interactive by 232.0% during 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 period. Sankala Group LLC acquired a new stake in shares of Peloton Interactive in the fourth quarter valued at approximately $31,000. Cora Capital Advisors LLC acquired a new stake in shares of Peloton Interactive in the first quarter valued at approximately $43,000. Advisory Services Network LLC bought a new position in shares of Peloton Interactive during the 3rd quarter worth approximately $48,000. Finally, SummitTX Capital L.P. bought a new position in shares of Peloton Interactive during the 1st quarter worth approximately $50,000. 77.01% of the stock is currently owned by institutional investors and hedge funds.

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.