Peloton Interactive Inc. (PTON) Volatility Spurs A Quest For Clarity


Fidelity Management & Research Co.. recently announced the acquisition of new stake in Peloton Interactive Inc. (NASDAQ:PTON). The institutional investor has increased its shareholding in the Consumer Cyclical company by 397.25% to 16.11 million shares with purchase of 12.87 million shares. This fresh investment now brings its stake to 7.82% valued currently at $1.1 billion. In addition, The Vanguard Group, Inc. raised its holdings by 11.17 million to 14.67 million shares. And Capital Research & Management Co.. has lifted its position by 0.01% or 531.0 shares – to 8.06 million shares.

With over 15.33 million Peloton Interactive Inc. (PTON) shares trading Friday and a closing price of $75.96 on the day, the dollar volume was approximately $1.16 billion. The shares have shown a positive weekly performance of 9.53% and its price on 08/28/20 gained nearly 8.05%. Currently, there are 280.88M common shares owned by the public and among those 205.91M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 26 analysts who have offered their price forecasts for PTON have a consensus price objective of $64.58. The analysts have set the share’s price value over the next 12 months at a high of $96.00 and a low of $26.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Peloton Interactive Inc. stock is 1.80 for the next 12 months. The average price target is -19.0% below its last price level and a downside to the estimated low will see the stock lose -192.15% over that period. But an upside of 20.88% will see the stock hit the forecast high price target while mean target price for the stock is $65.50.

Insiders at the company have transacted a total of 22 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 11 of these insider trades were purchases, accounting for 10,599,686 shares. Insider sales of the common stock occurred on 11 occasions, with total insider shares sold totaling 8,124,685 shares.

The top 3 mutual fund holders in Peloton Interactive Inc. are American Funds Growth Fund of Ame, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. American Funds Growth Fund of Ame owns 13.98 million shares of the company’s stock, all valued at over $953.76 million. The company bought an additional 4.28 million shares recently to bring their total holdings to about 6.79% of the shares outstanding. Vanguard Total Stock Market Index sold 15388.0 shares to see its total holdings shrink to 5.57 million shares valued at over $379.73 million and representing 2.70% of the shares outstanding. Vanguard Small Cap Index Fund sold 37940.0 shares to bring its total holdings to over 4.86 million shares at a value of $331.78 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.36% of the shares outstanding.

Shares of Peloton Interactive Inc. (NASDAQ: PTON) opened at $72.41, up $2.11 from a prior closing price of $70.30. However, the script later closed the day at $75.96, up 8.05%. The company’s stock has a 5-day price change of 9.53% and 65.67% over the past three months. It has a 12-month low price of $17.70 and touched a high of $73.21 over the same period. Currently, 15.33 million shares have been traded, compared to an average intraday trading volume of 7.36 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 11.85%, 19.64%, and 88.83% respectively.

Institutional ownership of Peloton Interactive Inc. (NASDAQ: PTON) shares accounts for 82.80% of the company’s 280.88M shares outstanding. Mutual fund holders own 43.88%, while other institutional holders and individual stakeholders account for 7.47% and 37.52% respectively.

It has a market capitalization of $19.91B. The earnings-per-share (ttm) stands at -$2.11. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.17% over the week and 4.85% over the month.

Analysts forecast that Peloton Interactive Inc. (PTON) will achieve an EPS of $0.09 for the current quarter, -$0.08 for the next quarter and -$0.25 for 2021. The lowest estimate earnings-per-share for the quarter is $0 while analysts give the company a high EPS estimate of $0.21. Earnings per share for the fiscal year are expected to decrease by -413.00%, and 62.10% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 26 brokerage firm advisors rate Peloton Interactive Inc. (PTON) as a “Strong Buy” at a consensus score of 1.80. Specifically, 20 Wall Street analysts polled rate the stock as a buy, while 2 of the 26 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the PTON, a number of firms have released research notes about the stock. Goldman stated their Buy rating for the stock in a research note on August 27, 2020, with the firm’s price target at $84-$96. Telsey Advisory Group coverage for the Peloton Interactive Inc. (PTON) stock in a research note released on July 31, 2020 offered a Outperform rating with a price target of $82. KeyBanc Capital Markets was of a view on July 28, 2020 that the stock is Overweight, while Wedbush gave the stock Outperform rating on July 20, 2020, issuing a price target of $63- $66. UBS on their part issued Neutral rating on July 16, 2020.


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