Peloton stock price surges on a record attendance to a workout class

Shares of Peloton (NASDAQ:PTON) jumped more than 6% yesterday after the company said it attracted a record 23,000 members to a single workout class this week. 

Fundamental analysis: Business is booming during the “stay-at-home” regime

Peloton, the New York-based company that sells exercise equipment, announced that it hosted an attendance of 23,000 members to one of its single-workout classes this week. The workout was hosted by Peloton’s head instructor Robin Arzon, a fitness instructor and the New York Times Best Selling Author.

The company was forced to halt production of online workout classes and close its studios earlier this month after an employee was tested positive for COVID-19. Four days ago, Peloton said that it will continue producing live classes from Arzon’s home. 

In addition to exercise equipment, including cycles and treadmills for home use, Peloton also sells subscriptions to stream live classes. This is the new record crowd attending the class through a video stream online, surpassing the previous record of 19,000.

Peloton also said it surpassed 2 million worldwide members. The company is scheduled to report its third quarter fiscal results on Wednesday, May 6, 2020.

Technical analysis: Stock price tests descending trend line

Shares of the company surged more than 6% higher after the company announced it held its largest class ever earlier this week. This prompted Roth Capital, an investment bank, to initiate coverage of the stock with a buy rating and a $38 a share price target.

The price action is now testing the descending trend line (the red line) near the $31 mark. A continuation of the bullish move is likely to facilitate a test of the record high, set last week, of $38.08. 

If the bullish scenario is the way forward, the buyers are likely to target the first Fibonacci extension level that sits just above the $39 handle. On the downside, the price action is supported by the 100-DMA at $28.99.

Summary

Shares of Peloton surged more than 6% higher after the company said it held an online working class in front of record 23,000 members, while it managed to surpass 2 million worldwide members.