Sales struggles and a downbeat profitability outlook brought on the bear note
Peloton Interactive Inc (NASDAQ:PTON) is down 6.5% to trade at $9.62 this morning, following a price-target cut from UBS to $8 from $13, as the firm also reiterated its "sell" rating. The analyst in question brought up the company's sales struggles and downbeat profitability outlook, and expressed doubts over the upside to its cost-cutting strategies.
The last time we checked on Peloton stock, it was surging on a deal with Amazon.com (AMZN). That rally failed short of the $14 level, which also rejected the shares earlier in August. The 100-day moving average has been guiding the shares lower all year, and so far in 2022 PTON is down 72.3%.
Short-term options traders have been more bearish than usual. The security's Schaeffer's put/call volume ratio (SOIR) sits at 1.08 and ranks in the elevated 81st percentile of the last 12 months, meaning these traders have rarely been more put-biased.
It's also worth mentioning PTON's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 84 out of 100, indicating the security has frequently exceeded option traders' volatility expectations during the past year.