Peloton Interactive Inc. [PTON] Revenue clocked in at $2.95 billion, down -8.23% YTD: What’s Next?

Peloton Interactive Inc. [NASDAQ: PTON] stock went on a downward path that fall over -4.56% on Wednesday, amounting to a one-week price decrease of less than -5.77%. The company report on February 12, 2021 that Peloton Interactive, Inc. Announces Closing of $1.0 Billion of 0% Convertible Senior Notes Due 2026, Including Full Exercise of Initial Purchasers’ $125.0 Million Option to Purchase Additional Notes.

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Peloton Interactive, Inc. (“Peloton”) (Nasdaq: PTON) announced that it has closed its offering of 0% convertible senior notes due 2026 (the “notes”) for gross proceeds of $1.0 billion, including the full exercise of the $125.0 million option to purchase additional notes granted by Peloton to the initial purchasers. The notes were only sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

The notes are senior, unsecured obligations of Peloton that do not bear regular interest, and the principal amounts of the notes will not accrete. The notes will mature on February 15, 2026, unless earlier redeemed, repurchased, or converted. Peloton may not redeem the notes prior to February 20, 2024. Peloton may redeem for cash all or any portion of the notes, at its option, on or after February 20, 2024 and on or before the 20th scheduled trading day immediately before the maturity date, if the last reported sale price of Peloton’s Class A common stock exceeds 130% of the conversion price then in effect on (1) at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on and including the trading day immediately before the date on which Peloton provides notice of redemption and (2) the trading day immediately before the date Peloton sends such notice, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest, if any, to, but excluding, the redemption date. No sinking fund is provided for the notes, which means that Peloton is not required to redeem or retire the notes periodically. Holders of the notes will have the right to require Peloton to repurchase for cash all or a portion of their notes upon the occurrence of a fundamental change (as defined in the indenture governing the notes) at a purchase price of 100% of their principal amount plus any accrued and unpaid special interest, if any. The notes are convertible at an initial conversion rate of 4.1800 shares of Peloton’s Class A common stock, per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $239.23 per share of Class A common stock, which represents a conversion premium of approximately 65% to the last reported sale price of $144.99 per share of Peloton’s Class A common stock on The Nasdaq Global Select Market on February 8, 2021).

Over the last 12 months, PTON stock rose by 414.14%. The one-year Peloton Interactive Inc. stock forecast points to a potential upside of 15.75. The average equity rating for PTON stock is currently 1.90, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $38.83 billion, with 292.46 million shares outstanding and 261.12 million shares in the current float. Compared to the average trading volume of 9.57M shares, PTON stock reached a trading volume of 10578331 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $165.25 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 1.90. 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.

Needham have made an estimate for Peloton Interactive Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 05, 2021. The new note on the price target was released on February 05, 2021, representing the official price target for Peloton Interactive Inc. stock. Previously, the target price had yet another raise from $115 to $124, while UBS kept a Sell rating on PTON stock.

The Average True Range (ATR) for Peloton Interactive Inc. is set at 8.34, with the Price to Sales ratio for PTON stock in the period of the last 12 months amounting to 13.14. The Price to Book ratio for the last quarter was 21.13, with the Price to Cash per share for the same quarter was set at 7.57. Price to Free Cash Flow for PTON in the course of the last twelve months was 61.97 with Quick ratio for the last quarter at 1.70.

PTON Stock Performance Analysis:

Peloton Interactive Inc. [PTON] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.77. With this latest performance, PTON shares dropped by -11.77% in over the last four-week period, additionally plugging by 113.35% over the last 6 months – not to mention a rise of 414.14% 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 43.09, with the RSI for the last a single of trading hit 38.88, and the three-weeks RSI is set at 46.41 for Peloton Interactive Inc. [PTON]. The present Moving Average for the last 50 days of trading for this stock 145.66, while it was recorded at 146.26 for the last single week of trading, and 95.61 for the last 200 days.

Insight into Peloton Interactive Inc. 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 1.70 and a Current Ratio set at 2.10.

PTON Stock EPS

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 -0.18/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -11.10%. 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 Position Details

There are presently around $27,933 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 21,302,071, which is approximately 25.182% of the company’s market cap and around 0.20% of the total institutional ownership; BAILLIE GIFFORD & CO, holding 15,983,896 shares of the stock with an approximate value of $2.23 billion in PTON stocks shares; and BLACKROCK INC., currently with $1.87 billion in PTON stock with ownership of nearly 59.315% of the company’s market capitalization.

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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 423 institutional holders increased their position in Peloton Interactive Inc. [NASDAQ:PTON] by around 46,597,962 shares. Additionally, 252 investors decreased positions by around 25,692,677 shares, while 51 investors held positions by with 128,331,012 shares. The mentioned changes placed institutional holdings at 200,621,651 shares, according to the latest SEC report filing. PTON stock had 210 new institutional investments in for a total of 12,522,269 shares, while 71 institutional investors sold positions of 2,746,128 shares during the same period.

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