Peloton Interactive (NASDAQ: PTON) has seen its price target cut significantly by Citigroup, dropping from $8.25 to $5.00. This adjustment was communicated to investors in a research note released on Thursday morning. Citigroup currently maintains a neutral rating on the stock, reflecting a cautious outlook on the company’s future performance.
Other financial institutions have recently adjusted their perspectives on Peloton as well. On February 6, JPMorgan Chase & Co. reduced its price objective from $9.00 to $6.00, also assigning a neutral rating. Conversely, Morgan Stanley raised its price target from $6.00 to $6.50, assigning an equal weight rating on November 19. Meanwhile, Macquarie Infrastructure boosted its target from $11.00 to $12.00, categorizing the stock as outperform. Additionally, Bank of America set a price target of $9.00 on January 30, and UBS Group reiterated a buy rating on February 3.
Currently, analysts have provided a diverse range of ratings for Peloton’s stock. One analyst has issued a strong buy rating, while seven others have given a buy rating. Eight analysts have opted for a hold rating, and one has recommended a sell. According to MarketBeat.com, the consensus rating for Peloton Interactive remains a hold, with an average price target of $8.42.
Financial Performance and Earnings Report
Peloton recently reported its earnings results on February 5. The company recorded earnings per share (EPS) of ($0.09), falling short of analysts’ expectations of ($0.07) by $0.02. The firm’s revenue for the quarter reached $656.50 million, which was below the consensus estimate of $675.04 million. This represented a 2.5% decline compared to the same quarter last year, when Peloton posted an EPS of ($0.24). Analysts forecast that Peloton will report an EPS of ($0.36) for the current fiscal year.
Insider Activity and Institutional Changes
In recent insider trading news, Jennifer Cunningham Cotter, an insider at Peloton, sold 148,432 shares on November 17 at an average price of $7.22, amounting to a total of approximately $1.07 million. This transaction led to a 39.04% decrease in her ownership of the stock, leaving her with 231,764 shares valued at around $1.67 million.
Similarly, Elizabeth F. Coddington, the Chief Financial Officer, sold 238,014 shares on the same day at an average price of $7.18, totaling about $1.71 million. Following this sale, Coddington holds 346,535 shares valued at approximately $2.49 million, representing a decrease of 40.72% in her ownership. In the past ninety days, insiders have sold a total of 1,107,129 shares worth around $7.71 million, with insiders currently owning 1.30% of the company’s stock.
Institutional investors have also been actively adjusting their stakes in Peloton. D.A. Davidson & Co. acquired a new stake valued at $338,000 during the second quarter. Voya Investment Management LLC significantly increased its stake by 325.5% in the third quarter, now owning 429,929 shares worth approximately $3.87 million. Other notable changes include Lisanti Capital Growth LLC, which purchased a new stake valued at about $2.43 million, and Geode Capital Management LLC, which grew its position by 5.7% in the second quarter.
As of now, institutional investors, including hedge funds, hold approximately 77.01% of Peloton’s stock, illustrating significant confidence from larger financial entities despite recent challenges faced by the company.
About Peloton Interactive
Founded in 2012 by John Foley, Peloton Interactive operates a digital fitness platform that merges connected exercise equipment with live and on-demand workout classes. Its primary offerings include stationary bikes, treadmills, and the Peloton Row, all equipped with touchscreen displays for streaming various fitness classes. Peloton generates recurring revenue through subscription plans that provide users access to a growing library of workouts and community features. Headquartered in New York City, Peloton aims to revolutionize the home fitness experience by integrating hardware, software, and content.
As the company navigates these recent developments, stakeholders will be closely monitoring its financial performance and market positioning in a competitive industry landscape.
