According to filings with the Securities and Exchange Commission (SEC) executives and insiders of Peloton sold almost $500 million stock, before the stocks declined to an abysmal low. Peloton stock is 80 percent below its highs in 2021. On Tuesday, it hit a 52-week low and was at $29.11, which is very close to its initial IPO price of $29 per share.
Most of the executives started selling shares when the price crossed $80 in fall 2020 and sales increased in 2021 when the stock price crossed over $100. This was at the height of the pandemic, when sales soared above all expectations and the demand was higher than the supply. However, after the lockdowns eased, the vaccination rate rose and the company faced lawsuits and recalls for accidents, the share price dramatically fell to lows close to its original IPO offer.
Some of those who cashed in from the $80 to $110 highs according to SmartInsider include the following:
CEO John Foley sold $119 million in November 2020 as part of a prearranged 10b5-1 plan, at $110 per share or more.
Company president William Lynch sold $105 million in 2021; $72 million in February with an average share price of $144.95.
Hisao Kushi, co-founder, chief legal and culture officer sold over $90 million shares with most of them having a share price of $110.
Tom Cortese, chief product officer sold more than $60 million of his stock.
Mariana Garavaglia, chief operating officer gained more than $25 million in sales.
Board member Karen Boone sold more than $20 million in stock in February 2021 at over $140 per share.
SmartInsider said that total insider selling created a record of $170 billion in sales in 2021, while the figures for 2020 were at $94 billion. Jeff Bezos and Elon Musk also sold large chunks of their shares.
It is a historical fact that corporate executives and insiders sell their stocks when they reach highs or near highs. They generally buy at low and sell at high. When asked for comment on the filings, there was no response from Peloton.
