Shares of Peloton Interactive (NASDAQ:PTON) were trending almost 2% down during the extended trading session on September 12 after the company announced that its Co-Founders, Executive Chairman John Foley and Chief Legal Officer Hisao Kushi, were resigning from their respective roles. Peloton’s Chief Commercial Officer, Kevin Cornils, is also leaving the company this month.
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While Karen Boone, the former President of Restoration Hardware Holdings, will be made the Chairperson of the Board, Uber Technologies’ (NYSE:UBER) Chief Deputy General Counsel, Tammy Albarrán, will be stepping up for the role of Chief Legal Officer.
Based in New York, Peloton Interactive Inc. is an exercise and fitness equipment and media company, which provides interactive fitness products for live and on-demand classes.
CEO Barry McCarthy Has a Transformation Plan
Once the COVID-19 hot stock, Peloton Interactive’s shares have now been battered, losing 90% of its market capitalization over the past year. Further, they are far away from their pandemic peak of over $150, trading at around $11.
Last month, the company reported dismal Fiscal Q4 results, with earnings falling massively short of expectations. Declining demand after the reopening of the world economy has led to margin compression and a cash crunch for the company.
Peloton’s recently hired CEO, Barry McCarthy, who joined the company in February, has a host of plans to execute a turnaround at the company. McCarthy has served as the CFO of Spotify (NYSE:SPOT) from 2015 to January 2020, and the CFO of Netflix (NASDAQ:NFLX) from 1999 to 2010.
Under McCarthy’s leadership, Peloton is now offering bikes at lower prices. The company is also offering rental options to its customers, certifying pre-owned bikes for resale, and selling them on Amazon.
What Is the Prediction for Peloton Stock?
As per TipRanks, the Street is cautiously optimistic about PTON stock, giving it a Moderate Buy consensus rating, which is based on 12 Buys, eight Holds, and two Sells. Peloton Interactive’s average price forecast of $16.13 implies 45.97% upside potential.
Bottom Line
The future of Peloton stock now depends on how well CEO Barry McCarthy is able to execute all his transformational plans, which aim at reviving the company and steering it to profitability again in the coming months.
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