How to use Peloton’s stock price calculator
JEFFERSON CITY, Mo.
— It was the kind of news that would make any news organization blush.
On Saturday, Peloton announced that its stock price had rocketed more than 300 percent from the day before.
The jump was caused by the company’s decision to issue a $1.5 billion share repurchase order, the company said.
The stock has since fallen more than 60 percent.
Peloton is in a tough spot right now.
It needs to attract new riders and generate more revenue to keep its competitors off the road.
But it also needs to maintain its core product line, which includes its high-end triathlon bike, which has a higher price tag than the $2,500 range of its competitors.
The stock market is a beast, and investors have become used to seeing dramatic price jumps in the wake of big announcements.
In this case, investors didn’t get to see the actual number of shares issued.
The company said that it would issue up to 1 billion shares.
In other words, the average price per share on Friday was about $4.50.
On Saturday, the stock hit $5.72.
The big question now is: What will the stock price do when it issues another repurchase?
Pushing the stock higher will be key for the company.
The company, which makes high-speed training equipment, said it will sell off its non-core business and consolidate its operations.
The result, it said, will be more revenue.
Pelo has been hemorrhaging money for a while.
In December, it reported a $6 million loss, its first since 2008.
In February, it was in a financial crisis.
Pete Kofler, the former president of Peloton, left the company in April after only a year on the job.
The announcement that he left, along with that of other former employees, made the stock tumble in a big way.PELOTON CEO P.J. Peloton is pictured in this file photo.
Pesky numbers in the pastTwo weeks ago, Peloton posted its fourth consecutive quarter of losses, its biggest in more than two decades.
Its stock dropped to $5 from $16, a drop of more than 70 percent.
But analysts said the company could still turn things around.
Investors aren’t buying Peloton just because of the company-wide loss.
They’re also taking a hard look at its financial performance.
Peltons share price has risen a lot, and it’s not just a matter of people looking for a ride on its new bike.
There are other reasons for the increase.
The recent buyback was a sign that investors were still willing to bet on the company, said David Daley, chief investment officer at Drexel Hamilton Capital.
The share repurchases aren’t the only reason investors are buying the stock.
Pelotons earnings and cash flow numbers are good.
In a year, the earnings could be even better.
Daley said he believes investors are holding on to Peloton because of its high price tag.
He said the shares are still undervalued and that it’s hard to beat a company that’s in a tight spot right about now.DALEY: If you look at Peloton as a company, you could argue that the $5 price tag is a reasonable price for it.
The only way to get to $6 would be to get the rest of the portfolio undervalued, which is probably the hardest thing that you can do.
I think you’re going to see a big bounce up from $4 to $4, and you’re also going to get a large bounce back down from $3.
Drexel Capital has been buying Pelotones shares for about a year.
In November, it bought about 20 million shares.
Daley said his clients were happy to buy.
In addition to the share repurches, Pelots shares are up more than $1,000.
This week, it sold about 6 million shares at a price of $10.20.
The price has climbed from $8.80 in mid-December to $11.20 today.
It could be a while before the stock can regain its former glory, but there’s plenty of reason to believe that investors will stay with the company for long.