An Insider Just Bought 31,337 Shares of Peloton
Peloton Interactive (SYM: PTON) is seeing big signs of life again.
After a good deal of chaos, the stock recently exploded from a low of $2.88 to $5.26. All thanks to impressive sales growth and further progress towards profitability.
Granted, paid connected subscriptions and new members were down 2%. First quarter earnings and fiscal year 2025 guidance were also underwhelming. However, investors were very pleased with the company’s improved gross margins and fiscal year 2025 EBITDA, which should get a boost from the company’s efforts to cut back on spending. Even better, its free cash flow improved to $26 million from $8.6 million quarter over quarter.
“Our improvement in profitability reflects our continued focus on aligning our costs with the size of our business. We made substantial progress toward achieving over $200M run-rate cost savings from our restructuring plan, delivering approximately $15M in cost savings in the quarter,” the company said.
Now we’re learning that for the first time in about three years, an insider bought shares.
In fact, PTON’s chief product officer, Nick Caldwell just bought 31,337 shares for about $4.25 each for about $133,182 in late August.
Even more impressive, funds have been buying PTON.
At the end of June, for example, DE Shaw increased its stake in PTON by 185.26%. Jim Simons’ Renaissance Technologies picked up 478,000 shares. David Einhorn’s DME Capital Management even just bought 6.79 million shares of PTON in late June.
In short, with big signs of improvement, insider and hedge fund buying, keep PTON on radar.
