Some big investors loaded up on Peloton as stock tumbled By Reuters

© Reuters. FILE PHOTO: A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, US, September 26, 2019. REUTERS / Shannon Stapleton

By Svea Herbst-Bayliss

BOSTON (Reuters) -Peloton Interactive Inc’s stock price tumbled more than 50% in the last three months of 2021 but several prominent investment firms were so sure the at-home fitness company could regain its footing that they bought new or added to existing positions.

Durable Capital Partners, run by former T. Rowe Price investment executive Henry Ellenbogen, bought 5.4 million shares of the company known for its stationary bikes, treadmills and on demand classes, according to regulatory filings made on Monday.

Ricky Sandler’s Eminence Capital bought 2.6 million shares. Scott Ferguson’s Sachem Head Capital Management took a new stake with 1.6 million shares, the filings showed.

The 13-F filings require fund managers to detail the amount of stock they held in US companies at the end of the previous quarter. While the filings are backward looking, they are closely watched for possible investment trends.

Tiger Global Management, already a Peloton (NASDAQ 🙂 investor, bought another 3 million shares, increasing its investment by 41% and Baillie Gifford, Peloton’s largest shareholder, added another 3.4 million shares, raising its stake by 12%, the filings show.

It was unclear when those investors bought. On Dec. 31, the last day of the quarter, Peloton traded at $ 35.76, down significantly from where it started the quarter at $ 86.71.

Among the considerable sales, Altimeter Capital exited its Peloton position when it sold 5.6 million shares. Coatue Management sold 3.7 million shares, slicing its holding by 89%, the filings showed.

Also Viking Global Investors sold 2.5 million shares, cutting the position by 39%. Daniel Loeb’s Third Point exited its position by selling 600,000 shares.

Since then Peloton shares have slid further. They closed at $ 32.83 on Monday. The company ‘s value has tumbled to $ 11.5 billion far from its peak of $ 50 billion.

Activist investment firm Blackwells Capital last month began suggesting the company sell itself. Some potential buyers appear to have been speaking with bankers even as Peloton signaled it was not for sale.

While Peloton became a pandemic-era darling, its fortunes began fading due to supply chain issues, slowing sales as gyms opened up again, high costs and a recall of one of its products.

Last week the company said John Foley, a co-founder and its chief executive, was moved into the executive chairman role and replaced as CEO by Barry McCarthy, a former finance chief at Netflix (NASDAQ 🙂 and Spotify (NYSE :).

Wall Street analyzes are generally welcomed McCarthy, but the share price remains depressed.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link