Mar. 27 at 7:33 PM
Peloton Interactive Inc. shares jumped after hedge fund manager Eric Jackson disclosed a long position at
$4, arguing the market is undervaluing the company based on its cash generation and insider buying activity.
Jackson highlighted that Peloton generated
$345M in free cash flow over the past year, trading at ~5x FCF—well below peers like Chewy , Roku , and Sonos . The company also holds
$1.18B in cash, about 67% of its market cap, while insiders—including CEO Peter Stern—recently bought shares around
$3.86.
Operationally, Peloton has posted four consecutive quarters of positive FCF, improved subscriber churn (1.6%), and reached 2.73M connected fitness subscribers. Despite slightly lower YoY revenue, management raised full-year EBITDA and FCF guidance.
The company also refinanced
$800M in debt, extending maturities to 2029, leaving total debt at
$1.95B versus ~
$345M annual FCF.
$PTON $CHWY $ROKU $SONO