Peloton chief content officer sells $1.21 million in stock

Jennifer Cunningham Cotter, the Chief Content Officer at Peloton Interactive, Inc. (NASDAQ:PTON), recently executed a sale of 187,238 shares of the company’s Class A common stock. The shares were sold on March 6, 2025, at a weighted average price of $6.4529, resulting in a total transaction value of approximately $1.21 million. The transaction comes as Peloton’s stock has shown significant volatility, with a 40% gain over the past year despite a recent 16% decline in the past week. This transaction was conducted under a Rule 10b5-1 trading plan that Cotter adopted on December 5, 2024. Following the sale, Cotter holds 100,269 shares of Peloton stock. According to InvestingPro analysis, the stock appears undervalued at current levels, with a market capitalization of $2.4 billion and a current ratio of 2.06, indicating strong short-term liquidity. Discover more insights and 12 additional ProTips for PTON with an InvestingPro subscription.

In other recent news, Peloton Interactive reported second-quarter fiscal year 2025 revenue of $674 million, surpassing both the consensus estimate of $655 million and BofA Securities’ projection of $658 million. The company’s EBITDA also exceeded expectations, reaching $58.4 million, significantly higher than the guidance range of $20-30 million. This outperformance is attributed to reduced operating expenses and a strong gross margin of 47.2%. Peloton’s free cash flow for the second quarter was $106 million, a substantial increase from $11 million in the first quarter, with projections for the fiscal year exceeding $200 million. BofA Securities responded by raising its price target for Peloton to $11.50 and maintaining a Buy rating.

Telsey Advisory Group maintained its Market Perform rating with an $11.00 price target, noting Peloton’s significant beat on adjusted EBITDA and increased full-year 2025 guidance. Truist Securities also raised its price target to $11.00 but kept a Hold rating, acknowledging Peloton’s efforts to recalibrate its business strategy. Meanwhile, Citi reduced its price target to $10.00 while maintaining a Neutral rating, citing improvements in customer engagement and unit economics. Needham analysts also held a Hold rating, recognizing operational advancements but expressing concerns over revenue growth challenges. These developments indicate ongoing strategic adjustments and financial restructuring efforts by Peloton.

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