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Andrew S. Rendich, the Chief Supply Chain Officer at Peloton Interactive, Inc. (NASDAQ:PTON), recently sold shares in the company valued at $142,347. The transaction, disclosed in a regulatory filing, involved the sale of 17,401 shares of Class A Common Stock on February 26, 2025. The shares were sold at a weighted average price of $8.1804, with individual transaction prices ranging from $7.85 to $8.66 per share. The stock has since declined to $7.43, marking a 13.2% drop over the past week. According to InvestingPro analysis, Peloton currently appears undervalued based on its Fair Value estimates.
Following this sale, Rendich retains ownership of 362,573 shares in Peloton. The sales were conducted under a Rule 10b5-1 trading plan, which was adopted by Rendich in November 2024. This plan allows executives to set up a predetermined schedule for selling stocks, providing a defense against potential accusations of insider trading. With a market capitalization of $3.07 billion and a healthy current ratio of 2.06, Peloton maintains strong liquidity. For deeper insights into Peloton’s financial health and exclusive ProTips, visit InvestingPro, where you’ll find comprehensive analysis in the Pro Research Report.
In other recent news, Peloton Interactive has been the focus of several analyst updates following its second-quarter fiscal year 2025 results. BofA Securities raised its price target to $11.50, maintaining a Buy rating, as Peloton reported revenue of $674 million, surpassing expectations. The company’s EBITDA significantly exceeded forecasts, attributed to reduced operating expenses and strong gross margins. Citi, on the other hand, adjusted its price target to $10.00 while maintaining a Neutral stance, noting improvements in customer engagement and profitability. Telsey Advisory Group kept its Market Perform rating with an $11.00 price target, acknowledging Peloton’s improved EBITDA and free cash flow projections despite revenue pressures.
Needham analysts maintained a Hold rating, citing progress in unit economics but expressing concerns over revenue growth. Truist Securities also increased its price target to $11.00, highlighting Peloton’s efforts to recalibrate its business strategy and improve profitability. The company has made strides in reducing its net leverage and improving cash flow, with expectations of over $200 million in free cash flow for the fiscal year. These developments indicate a focus on operational efficiency and strategic growth initiatives under the leadership of new CEO Peter Stern (AS:PBHP).
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