Peloton Interactive Crashes on Downgrade News

By Naomi Wentworth • Tuesday, January 24 15:04 • Permanent Link

PTON investors were likely spooked this afternoon by Barrons's report: "Peloton Stock Downgraded on Demand Concerns ..." For more coverage, read the full article here. On the back of this news, Peloton Interactive sank -4.1% to a price of $11.19. Are the markets overreacting?

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) ratio of 3.11. In contrast, Peloton Interactive has a trailing 12 month P/E ratio of -1.9 and a P/B ratio of 14.7.

Peloton Interactive has moved -56.0% over the last year compared to -7.7% for the S&P 500 -- a difference of -48.3%. Peloton Interactive has a 52 week high of $40.35 and a 52 week low of $6.66. At today's price of $11.19 per share, Peloton Interactive is -16.96% away from its target price of $13.47, and on average, analysts give the stock a rating of buy. 15.0% of the company's shares are linked to short positions, and 81.3% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.