Insider Trading Report: Peloton Interactive (PTON)

TCV X Cycle LP, a major owner of Peloton Interactive (PTON), has been adding to their stake. They made two separate buys last week, one for 39,388 shares, and one for 16,492 shares. The two buys increased the fund’s stake in the firm by nearly 3 percent.

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  • This adds to other buys made by the fund earlier in May as well, totaling over $9.5 million. Outside of this fund buy, company insiders have generally been sellers since the company went public.

    Company executives still own just over 2.1 percent of the company.

    Shares of Peloton have had an interesting run. Over the past year, they’re still up 157 percent. But shares have slid massively since the start of the year following stalled production and demand for the company’s products, as well as a voluntary recall.

    Shares have been on the rise since the start of May, however, as the company has unveiled a new product line in the form of a treadmill.

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  • Action to take: Shares are conventionally expensive, and any negative news could cause another drop. So traders may want to use a call option to bet on a continued rally in shares in the short-term.

    The September $120 calls have time for a rally to continue to play out over the summer. Priced at about $11.40, traders can likely look to nab mid-to-high double-digit profits on this trade.


    Disclosure: The author of this article has no positions in the stock mentioned here, and does not intend to make a trade on this company after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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