PTON Jumps Higher on Product Price Reduction

The equity is up 210% year-to-date

Digital Content Manager
Sep 8, 2020 at 10:44 AM
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The shares of Peloton Interactive Inc (NASDAQ: PTON) are up 8% at $88.06 at last check, after the at-home workout company announced it would reduce the price of its original bike and introduce new models to its portfolio of fitness products and experiences. In turn, the company earned a price-target hike from Telsey to $105 from $82 this morning, just a few days ahead of its fiscal fourth-quarter earnings report on Thursday, Sept. 10.

The security has cooled off on the charts over the past week. However, PTON shares reached an all-time-high of $92.50 on Sept. 2. The equity had been working towards that peak for the majority of the last five months, breaking higher on a monthly basis since April, with support from the 30-day moving average. The stock is up 210% year-to-date.

Analysts were already optimistic toward the security coming into today, with 22 of the 25 in coverage sporting a "buy" or better, and only three carrying a tepid "hold" or worse. Meanwhile, the stock's 12-month consensus target price of $70.83 is a 19.8% discount to current levels.

That optimism is echoed in the options pits, where calls are overwhelming puts. In fact, 222,736 calls were exchanged in the past 50 days, as opposed to 112,451 puts. As for today, 21,000 calls have crossed the tape --  three times the average intraday amount. Most popular is the September 80 call, followed closely by the weekly 9/11 80-strike call.

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