Peloton Interactive (PTON 6.15%) stock is making big gains in Monday’s trading. The company’s share price was up 7.5% as of 2:45 p.m. ET, according to data from S&P Global Market Intelligence.
On Friday, Morgan Stanley and Capital World Investors submitted filings to the Securities and Exchange Commission (SEC) disclosing their updated holdings in Peloton as of late December. Morgan Stanley’s SC 13G/A filing showed that it had reduced its position in the stock, while Capital World Investors showed that it had actually bought shares.
Some key institutional investors haven’t given up
Morgan Stanley’s filing showed that it still owned around 38 million shares of Peloton stock as of Dec. 31, 2023. The number is down roughly 3.6% from its holdings as of Sept. 29, but it’s not a huge change, all things considered. Morgan Stanley still holds an 11.1% stake in Peloton — down from the 11.6% stake that it held as of its previous filing.
Meanwhile, Capital World Invest’s latest filing showed that it owned 26 million shares of Peloton stock as of Dec. 29 — representing an increase of roughly 7.3% increase from its holdings a year prior. The purchasing pushed the company’s ownership position up to 7.8%.
A small (but welcome) bit of good news
Normally, the news that a large, high-profile investor such as Morgan Stanley had been selling a company’s stock would be a bearish development — but Peloton’s situation is somewhat unique. The business has struggled mightily lately, and the company’s share price is down approximately 65% over the last year. Meanwhile, the stock is down a staggering 97% from the high that it reached at the peak of pandemic-driven trading.
Given the recent challenges facing the company and its valuation, it would be reasonable to assume that the company has lost substantial support from institutional investors. But between the two separate filings submitted by Morgan Stanley and Capital World Invest on Friday, more shares of Peloton stock were actually bought than sold. It looks like some of its biggest shareholders are sticking with the stock — at least for now.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Peloton Interactive. The Motley Fool has a disclosure policy.
