What Are The Risk Factors For Peloton Interactive Inc. (PTON)?

As of Thursday close, Peloton Interactive Inc.’s (NASDAQ:PTON) stock was up $1.28, moving up 10.37 percent to $13.62. The average number of shares traded per day over the past five days has been 29,870,340 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.39 fall in that time frame. In the last twenty days, the average volume was 15,115,560, while in the previous 50 days, it was 11,735,754.


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Since last month, PTON stock retreated -42.56%. Shares of the company fell to $11.25 on 05/10/22, the lowest level in the past month. A 52-week high of $129.70 was reached on 02/08/22 after having rallying from a 52-week low of $11.25. Since the beginning of this year, PTON’s stock price has dropped by -61.91% or -$22.14, and marked a new high 3 times. However, the stock has declined by -89.50% since its 52-week high.

Peloton Interactive Inc. (PTON) last reported insider trading activity 85 days ago on Feb 17. Garavaglia Mariana, the Chief Operating Officer of the company, disposed of 2,459 shares for $31.99 on Feb 17. It resulted in a $78,674 divestment by the insider. Klingsick Allen J sold 2,059 shares at an average price of $31.89 on Feb 17. The insider now owns 16,799 shares following the transaction. On Feb 17, Director LYNCH WILLIAM sold 6,250 shares at $32.49 apiece. The transaction was valued at $203,070.

Financial Health

In the three months ended September 29, Peloton Interactive Inc.’s quick ratio stood at 1.30, while its current ratio was 2.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.36, and the total debt-to-equity ratio was 0.36. On the profitability front, the trailing twelve-month gross margin is 30.00% percent. In the year ended September 29, EBITDA margin amounted to 0.20%, whereas operating margins totaled -26.60%. Based on annual data, PTON earned $1.45 billion in gross profit and brought in $4.02 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -6.90%. Return on equity (ROE) for the past 12 months was -59.70%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. PTON’s revenue fell -30.9% to $1.13 billion during the quarter, while net income inched up to $964.3 million. While analysts expected Peloton Interactive Inc. to report -$1.07 quarterly earnings, the actual figure was -$1.25 per share, beating the consensus estimate by -16.80%. During the quarter, the company generated -$507.3 million in EBITDA. The liabilities of Peloton Interactive Inc. were 2.66 billion at the end of its most recent quarter ended September 29, and its total debt was $1.64 billion. The value of shareholders’ equity is $337.36 million.

Technical Picture

This quick technical analysis looks at Peloton Interactive Inc.’s (PTON) price momentum. With a historical volatility rate of 109.30%, the RSI 9-day stood at 27.12% on 12 May.

With respect to its five-day moving average, the current Peloton Interactive Inc. price is down by -19.93% percent or -$3.39. At present, PTON shares trade -45.59% below its 20-day simple moving average and -67.92% percent below its 100-day simple moving average. However, the stock is currently trading approximately -49.05% below its SMA50 and -88.83% below its SMA200.

Stochastic coefficient K was 17.27% and Stochastic coefficient D was 11.53%, while ATR was 1.97. Given the Stochastic reading of 25.62% for the 14-day period, the RSI (14) reading has been calculated as 28.86%. As of today, the MACD Oscillator reading stands at -2.76, while the 14-day reading stands at -3.87.

Analyst Ratings

JMP Securities upgraded its rating on Peloton Interactive Inc. (NASDAQ: PTON) to a Mkt outperform in a note to investors on May 11, 2022. The analysts firm previously had a Mkt perform rating on the stock.Peloton Interactive Inc. (PTON) has been rated Overweight by analysts. According to 2 brokerage firms, PTON is a sell, and 15 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate Peloton Interactive Inc. stock as buy, with 13 recommending it as overweight.

With a median target price of $24.50, the current consensus forecast for the stock is $10.00 – $35.00. Based on these forecasts, analysts predict Peloton Interactive Inc. (PTON) will achieve an average price target of $22.76.

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