In a report released yesterday, Ronald Josey from Citi maintained a Hold rating on Peloton Interactive, with a price target of $9.50.
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Ronald Josey has given his Hold rating due to a combination of factors surrounding Peloton Interactive’s recent financial performance and future outlook. Peloton reported better-than-expected results for the first quarter of fiscal year 2026, with revenue slightly above consensus and EBITDA significantly exceeding guidance. However, the gross margin saw a decline, partly due to costs associated with a seat post recall, which impacted profitability.
Despite the positive revenue and subscriber numbers, there are concerns about future performance. The company’s guidance for the second quarter of fiscal year 2026 indicates a potential decline in paid subscriber numbers compared to projections, and EBITDA guidance is notably below consensus. These mixed signals, alongside the high-risk classification of the stock, contribute to the Hold rating, suggesting that while there are positive aspects, uncertainties and potential risks remain.
Based on the recent corporate insider activity of 91 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PTON in relation to earlier this year.