Peloton Interactive Inc. (NASDAQ: PTON) stock fell -2.62% on Wednesday to $7.06 against a previous-day closing price of $7.25. With 11.06 million shares changed hands, the volume of the stock remained heavier than its average volume of 9.6 million shares. During the session, the Leisure company that operates in wider Consumer Cyclical sector, reached to the highest price of $7.19 whereas the lowest price it dropped to was $6.89. The 52-week range on PTON shows that it touched its highest point at $17.83 and its lowest point at $6.62 during that stretch. It currently has a 1-year price target of $12.41. Beta for the stock currently stands at 1.93.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PTON was down-trending over the past week, with a drop of -1.12%, but this was down by -19.86% over a month. Three-month performance dropped to -46.02% while six-month performance fell -27.66%. The stock lost -48.16% in the past year, while it has lost -11.08% so far this year. A look at the trailing 12-month EPS for PTON yields -6.69 with Next year EPS estimates of -1.15. For the next quarter, that number is -0.40. This implies an EPS growth rate of 61.80% for this year and 65.60% for next year.
Float and Shares Shorts:
At present, 350.43 million PTON shares are outstanding with a float of 310.65 million shares on hand for trading. On Apr 27, 2023, short shares totaled 36.97 million, which was 10.43% higher than short shares on Mar 30, 2023. In addition to Mr. W. Barry McCarthy Jr. as the firm’s CEO, Pres & Director, Mr. Thomas Cortese serves as its Co-Founder & Chief Product Officer.
Other institutions hold 7.21% of PTON, in contrast to 43.83% held by mutual funds. Shares owned by individuals account for 39.77%. As the largest shareholder in PTON with 12.37% of the stake, T. Rowe Price Associates, Inc. holds 40,449,701 shares worth 40,449,701. A second-largest stockholder of PTON, The Vanguard Group, Inc., holds 28,183,454 shares, controlling over 8.62% of the firm’s shares. Morgan Stanley Investment Managem is the third largest shareholder in PTON, holding 26,469,171 shares or 8.09% stake. With a 5.60% stake in PTON, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 18,318,027 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.95% of PTON stock, is the second-largest Mutual Fund holder. It holds 9,660,054 shares valued at 85.78 million. T Rowe Price Growth Stock Fund holds 2.65% of the stake in PTON, owning 8,677,916 shares worth 77.06 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, PTON reported revenue of $678.70M and operating income of -$504.90M. The EBITDA in the recently reported quarter was -$506.10M and diluted EPS was -$3.68.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PTON since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With PTON analysts setting a high price target of $20.00 and a low target of $4.50, the average target price over the next 12 months is $11.80. Based on these targets, PTON could surge 183.29% to reach the target high and fall by -36.26% to reach the target low. Reaching the average price target will result in a growth of 67.14% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded PTON stock several times over the past three months with 6 Buys and 0 Sells. In these transactions, 43,608 shares were bought while 0 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 335,058 while 267,770 shares were sold.