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Peloton Shares Outperform as Coronavirus Prompts Consumers to Exercise at Home

Peloton, the subscription exercise equipment and service provider, has strongly beat the S&P 500 index over the past month, as sales appear to be rising, a media report says. The coronavirus has prompted consumers to work out at home.
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Shares of Peloton Interactive  (PTON)  have performed much better than the S&P 500 index amid the stock market’s plunge over the past month, as the coronavirus pandemic seems to have sparked sales for the exercise software and machine company.

People are working out at home, as gyms have been ordered to close. And many have plenty of time to exercise at home, as their employers have them working remotely from home.

Peloton declined comment to TheStreet as to how its sales are doing. But it did point out that it's offering a free trial to the Peloton App. And it said that the app provides workouts even for those who don't have exercise equipment.

Meantime, its website warns of delivery delays of up to a month for its bikes. And Peloton competitor Echelon Fitness Multimedia told Bloomberg that its sales are rising tenfold.

To be sure Echelon bikes are cheaper than Peloton’s. Echelon also told Bloomberg that app-class attendance soared 40% last week.

But analysts are skeptical about whether the coronavirus bump will last for exercise companies. 

“This an outlier,” Matt Powell, a vice president and sports-industry adviser at NPD Group, told Bloomberg. Though home-exercise bike sales climbed 16% in 2019, sales for the entire home fitness sector fell 9%, he said.

In other Peloton news, Wellington Management, one of its largest shareholders, said in a regulatory filing Tuesday that it sold 296,778 shares Friday at $25.01 each and 238,222 shares Monday at $24.05. That amounts to $13.1 million in total.

After the sales, Wellington still held 5.9 million shares valued at $146.5 million Wednesday morning.

At last check, Peloton shares traded at $24.65, up 0.3%. 

Over the month through Wednesday, the company’s stock slipped 8%, compared with a 23% drop for the S&P 500.