Is Peloton Interactive Inc. (PTON) Good For Your Portfolio?

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Peloton Interactive Inc. (NASDAQ:PTON) saw an upside of 5.42% to close Monday at $11.66 after adding $0.6 on the day. The 5-day average trading volume is 12,625,260 shares of the company’s common stock. It has gained $12.14 in the past week and touched a new high 2 times within the past 5 days. An average of 10,800,780 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 11,417,260.

PTON’s 1-month performance is 11.58% or $2.77 on its low of $7.68 reached on 12/30/22. The company’s shares have touched a 52-week low of $6.66 and high of $40.35, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, PTON has achieved 46.85% or $3.72 and has reached a new high 10 times. However, the current price is down -71.10% from the 52-week high price.


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Insider Transactions

PTON stock investors last saw insider trading activity on Nov 18.Cotter Jennifer Cunningham (Chief Content Officer) most recently sold 530 shares at $11.01 per share on Nov 18. This transaction cost the insider $5,835. Chief Content Officer, Cotter Jennifer Cunningham, sold 15,332 shares at a price of $11.12 on Nov 16. Then, on Nov 16, Chief Product Officer Cortese Thomas sold 11,445 shares at a price of $11.17 per share. This transaction amounted to $127,848.

Valuation Metrics

PTON stock has a beta of 1.79. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.10 while the price-to-book (PB) in the most recent quarter is 15.34.

Peloton Interactive Inc.’s quick ratio for the period ended June 29 was 1.40, with the current ratio over the same period at 2.50. As well, the company’s long term debt to equity for the quarter ending June 29 was 6.48, while the total debt to equity was 6.51. In terms of profitability, the gross margin trailing 12 months is 19.20%. The firm’s gross profit as reported stood at $698.4 million against revenue of $3.58 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 7.96% to -$408.5 million, while revenue of -$1.26 billion was -207.27% off the previous quarter. Analysts expected PTON to announce -$0.72 per share in earnings in its latest quarter, but it posted -$2.68, representing a -272.20% surprise. EBITDA for the quarter stood at more than -$341.8 million. PTON stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 3.33 billion, with total debt at $2.37 billion. Shareholders hold equity totaling $340.05 million.

Let’s look briefly at Peloton Interactive Inc. (PTON) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 63.83% to suggest the stock is trending Neutral, with historical volatility in this time period at 81.93%.

The stock’s 5-day moving average is $11.24, reflecting a +0.26% or $0.03 change from its current price. PTON is currently trading +18.02% above its 20-day SMA, +11.37% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +21.71% and SMA200 by-55.50%.

Stochastic %K and %D was 75.46% and 75.09% and the average true range (ATR) pointed at 0.80. The RSI (14) points at 60.10%, while the 14-day stochastic is at 88.71% with the period’s ATR at 0.80. The stock’s 9-day MACD Oscillator is pointing at -0.01 and 0.82 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Peloton Interactive Inc. (NASDAQ: PTON), Cowen downgraded it to a Market perform rating. They previously had an Outperform rating on the stock. Analysts offering their rating for PTON stock have a consensus rating for the stock as Overweight. Currently, 2 brokerage advisors rate PTON as a “sell,”, while 15 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 3 rates the stock as overweight while 11 have offered a “buy” rating.

What is PTON’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $4.50 and a high of $20.00, with their median price target at $13.00. Looking at these predictions, the average price target given by analysts is for Peloton Interactive Inc. (PTON) stock is $12.56.

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