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.
Image and article originally from www.schaeffersresearch.com. Read the original article here.