Peloton, the best workout play? The breakdown on PTON.

Many are wondering about $PTON otherwise known as Peloton, so here is the breakdown.


Current Price: $58.06

52/Wk High: $58.30

52/Wk Low: $17.70


Read below for the breakdown!


Peloton is one of the favorite stay at home stocks and its massive run to new highs over the past few months has only confirmed that.


At the end of the day, people are stuck inside and want to workout, and Peloton offers the perfect solution.


Not only that but many don’t like the gym, see it as dirty or high risk of COVID, and are now finding it more convenient to work out at home.


Given this $PTON has seen a huge jump in their fitness subscriber count, reaching a 94% increase, making their sub count 886,100.


Given this though the company last reported a Q3 2020 loss of $-0.20 EPS versus the $-0.02 EPS consensus. Revenue on the other hand was up, to a nice $525 million.


Even though earnings were not fantastic the company has a sizable cash position of $1.433 billion.


Analysts on the other hand are not as bullish. Currently, the average price target is $51.64/share representing an 11.06% downside. On the other hand, the high end price target is $70.00/share, so some firms are still bullish.


The big money is also not as bullish as other names with only 57.17% of the company being owned by institutions. The largest holders are Baillie Gifford, Wellington management, and capital research global investors. All of which have positions from $447 million to $970 million.


Overall the stock has run big and I would be waiting for a pullback to get in. It has simply run too long and too far for it to not pull back and when it does, that is the time to strike.


In short, it is risky here, and I do not like the fact that they disappointed on earnings with fantastic revenue.


In short, I think its a good long term investment but short and mid-term high risk.


Disclaimer: This is not financial advice simply opinion based on independent research.


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