- The analyst community touts upside for Peloton stock. Yet, % of Peloton’s float is sold short.
- IPO Lockup expires Mar. , which could lead to en-masse sell-off like the one we saw in Beyond Meat last October.
- In the meantime, a short-squeeze could happen when Peloton announces earnings Feb. 5.
Post-IPO, shares of Peloton Interactive (NASDAQ: PTON) have barely moved. The fitness technology company September offering priced shares at $ 50. As CCN reported, shares dropped on their first day of trading .
Peloton stock has since rebounded, but just barely:
BYND stock performance from September through December . | Source:
Shares tumbled more than %, as insiders cashed their chips.
. But short-term, insider-driven selling pressure could impact Peloton stock. In the Meantime, a Short-Squeeze Could Happen Post-Earnings
With prominent short-sellers like Citron Research making bearish calls, it’s no surprise Peloton remains a popular stock to short:
But with so many short-sellers crowded in this play, collectively, they leave themselves exposed to a short-squeeze. .
So far, this has not happened. But, with the company earnings release set for Feb . 5
, it could occur if results exceed expectations. Take a look at what happened with heavily-shorted Rite Aid (NYSE: RAD) stock back in December. Shares more than doubled after beating earnings estimates .
However, this is a possibility, not a prediction. It’s tough to handicap how earnings results will turn out. But keep this in mind when assessing Peloton shares.
Sleepy Peloton Stock Could Start Seeing Big Price Moves
Peloton stock may be treading water now but in the coming months, shares could see big moves, upward or downward.
If Peloton beats on earnings next week, shares could skyrocket on a short-squeeze. Conversely, Peloton could head lower come March, as the IPO expiration period ends.
Bottom line: the analyst community may be confident in Peloton’s prospects. But with volatile factors at play, Peloton stock may mean a roller coaster ride for investors.
Disclaimer: The above should not be considered trading advice from CCN.com. As of this writing, Thomas Niel did not hold a position in any of the securities mentioned in this article.
This article was edited by Sam Bourgi . 1204446227644862464
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