Peloton Interactive Inc. [NASDAQ: PTON] surged by $11.38 during the normal trading session on Wednesday and reaching a high of $169.00 during the day while it closed the day at $167.42. The company report on December 22, 2020 that Peloton Signs Agreement To Acquire Precor.
Acquisition expected to establish Peloton’s U.S. manufacturing footprint, enhance R&D capabilities, and accelerate growth of commercial verticals.
Peloton (NASDAQ: PTON), the leading interactive fitness platform, announced that it has entered into an agreement to acquire Precor, one of the largest global commercial fitness equipment providers with a significant U.S. manufacturing presence, in a transaction valued at $420 million USD. With the acquisition, Peloton plans to establish U.S. manufacturing capacity, boost research and development capabilities with Precor’s highly-skilled team, and accelerate Peloton’s penetration of the commercial market. Peloton plans to produce connected fitness products in the U.S. before the end of the calendar year 2021. Subject to the completion of the transaction, Precor will operate as a business unit within Peloton. Precor President Rob Barker will become CEO, Precor and General Manager, Peloton Commercial, reporting to William Lynch, Peloton’s President. Precor is a division of Finnish sporting goods company Amer Sports, which is owned by an investor consortium including ANTA Sports (HKG:2020.HK), FountainVest Partners, Anamered Investments Inc. and Tencent Holdings Limited. The transaction is expected to close in early calendar year 2021.
Peloton Interactive Inc. stock has also gained 16.46% of its value over the past 7 days. However, PTON stock has inclined by 27.83% in the 3 months of the year. Over the past six months meanwhile, it has gained 165.20% and gained 10.35% year-on date.
The market cap for PTON stock reached $47.47 billion, with 288.72 million shares outstanding and 253.15 million shares in the current float. Compared to the average trading volume of 14.19M shares, PTON reached a trading volume of 10536946 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Peloton Interactive Inc. [PTON]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PTON shares is $146.29 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PTON stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Gordon Haskett have made an estimate for Peloton Interactive Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 08, 2021. While these analysts kept the previous recommendation, Barclays raised their target price to Overweight. The new note on the price target was released on January 04, 2021, representing the official price target for Peloton Interactive Inc. stock. Previously, the target price had yet another raise from $145 to $180, while Telsey Advisory Group kept a Outperform rating on PTON stock. On December 22, 2020, analysts increased their price target for PTON shares from 142 to 162.
The Average True Range (ATR) for Peloton Interactive Inc. is set at 8.19, with the Price to Sales ratio for PTON stock in the period of the last 12 months amounting to 20.15. The Price to Book ratio for the last quarter was 26.83, with the Price to Cash per share for the same quarter was set at 7.13. Price to Free Cash Flow for PTON in the course of the last twelve months was 81.64 with Quick ratio for the last quarter at 2.00.
PTON stock trade performance evaluation
Peloton Interactive Inc. [PTON] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 16.46. With this latest performance, PTON shares gained by 42.97% in over the last four-week period, additionally plugging by 165.20% over the last 6 months – not to mention a rise of 463.89% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PTON stock in for the last two-week period is set at 66.98, with the RSI for the last a single of trading hit 68.77, and the three-weeks RSI is set at 65.52 for Peloton Interactive Inc. [PTON]. The present Moving Average for the last 50 days of trading for this stock 127.11, while it was recorded at 157.74 for the last single week of trading, and 81.83 for the last 200 days.
Peloton Interactive Inc. [PTON]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Peloton Interactive Inc. [PTON] shares currently have an operating margin of -1.12 and a Gross Margin at +44.72. Peloton Interactive Inc.’s Net Margin is presently recorded at -3.92.
Return on Total Capital for PTON is now -1.50, given the latest momentum, and Return on Invested Capital for the company is -5.23. Return on Equity for this stock declined to -6.88, with Return on Assets sitting at -3.72. When it comes to the capital structure of this company, Peloton Interactive Inc. [PTON] has a Total Debt to Total Equity ratio set at 30.29. Additionally, PTON Total Debt to Total Capital is recorded at 23.25, with Total Debt to Total Assets ending up at 17.04. Long-Term Debt to Equity for the company is recorded at 30.29, with the Long-Term Debt to Total Capital now at 23.25.
Reflecting on the efficiency of the workforce at the company, Peloton Interactive Inc. [PTON] managed to generate an average of -$19,383 per employee. Receivables Turnover for the company is 68.77 with a Total Asset Turnover recorded at a value of 0.95.Peloton Interactive Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.40.
Earnings per share (EPS) analysis for Peloton Interactive Inc. [PTON] stock
With the latest financial reports released by the company, Peloton Interactive Inc. posted -0.2/share EPS, while the average EPS was predicted by analysts to be reported at -0.35/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 42.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PTON. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Peloton Interactive Inc. go to -6.10%.
Peloton Interactive Inc. [PTON]: Insider Ownership positions
There are presently around $29,962 million, or 71.40% of PTON stock, in the hands of institutional investors. The top three institutional holders of PTON stocks are: VANGUARD GROUP INC with ownership of 17,016,944, which is approximately 15.702% of the company’s market cap and around 0.20% of the total institutional ownership; BAILLIE GIFFORD & CO, holding 15,781,576 shares of the stock with an approximate value of $2.64 billion in PTON stocks shares; and JENNISON ASSOCIATES LLC, currently with $1.8 billion in PTON stock with ownership of nearly New of the company’s market capitalization.
Positions in Peloton Interactive Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 355 institutional holders increased their position in Peloton Interactive Inc. [NASDAQ:PTON] by around 44,340,789 shares. Additionally, 174 investors decreased positions by around 35,923,175 shares, while 43 investors held positions by with 98,697,846 shares. The mentioned changes placed institutional holdings at 178,961,810 shares, according to the latest SEC report filing. PTON stock had 206 new institutional investments in for a total of 18,470,772 shares, while 45 institutional investors sold positions of 7,082,378 shares during the same period.