Insider Trading February 18, 2026

Peloton CEO Sells $130K in Stock to Settle RSU Taxes as Company Reports Revenue Miss

Peter C. Stern disposes of 31,461 shares after exercising RSUs; Peloton posts softer-than-expected fiscal Q2 results and faces mixed analyst reactions

By Caleb Monroe PTON
Peloton CEO Sells $130K in Stock to Settle RSU Taxes as Company Reports Revenue Miss
PTON

Peloton Interactive CEO Peter C. Stern sold 31,461 Class A shares on February 17, 2026, at a weighted average price of $4.1389 to cover tax liabilities tied to the settlement of Restricted Stock Units (RSUs). The sale generated about $130,213. Two days earlier he converted RSUs into 59,714 shares through option exercise. The moves come amid a nearly 56% year-over-year decline in Peloton’s share price and a fiscal Q2 report that missed revenue and EPS expectations.

Key Points

  • Peloton CEO Peter C. Stern sold 31,461 Class A shares on February 17, 2026, at a weighted average price of $4.1389 to cover RSU-related tax liabilities, generating about $130,213.
  • On February 15, 2026, Stern exercised options to convert RSUs into 59,714 shares; after these actions he directly owns 344,812 shares of Peloton.
  • Peloton reported fiscal Q2 revenue of $656.5 million (down 2.6% year-over-year), missed analyst estimates and guidance, and posted a $0.09 per share loss versus an expected $0.05 loss; analysts issued mixed ratings and adjusted price targets.

Peloton Interactive’s chief executive, Peter C. Stern, completed a sale of 31,461 shares of Class A Common Stock on February 17, 2026, to meet tax obligations arising from the settlement of Restricted Stock Units (RSUs). The shares were disposed of at a weighted average price of $4.1389, producing gross proceeds of approximately $130,213. The execution prices spanned from $4.0950 to $4.2200.

That transaction followed a separate action on February 15, 2026, when Stern exercised options to convert RSUs into 59,714 shares of Class A Common Stock. Together, these moves reflect RSU-related activity rather than an additional, separate sale for other purposes. After accounting for these transactions, Stern directly holds 344,812 shares of Peloton Interactive.

The sales were recorded while Peloton shares were trading near their 52-week low of $4.08; the stock was quoted at $4.32 at the time of reporting. Over the last 12 months the company’s shares have declined by nearly 56%.

Data from InvestingPro included with these filings notes that the stock is assessed as slightly undervalued relative to its Fair Value metric. Those same InvestingPro data points indicate analysts expect Peloton to reach profitability this year and that the company presents a current ratio of 1.98.


Peloton’s recent operational results add context to the insider transactions. In its second quarter of fiscal 2026 the company reported revenue of $656.5 million, a 2.6% decrease from the year-ago period. That revenue figure missed analyst estimates of $675.6 million and fell short of the company’s own guidance range of $665 million to $685 million. Peloton also posted a quarterly loss of $0.09 per share, wider than the anticipated loss of $0.05 per share.

Analyst responses to the quarter were mixed. BofA Securities retained a Buy rating for the stock but reduced its price target from $9.00 to $7.50, citing lower-than-expected hardware sales and delays in delivery times. Telsey Advisory Group lowered its price target from $8.00 to $6.00 while maintaining a Market Perform rating, pointing to ongoing growth headwinds. Conversely, Canaccord Genuity reiterated a Buy rating with a $10.00 price target. Needham maintained a Hold rating and signaled persistent revenue pressure despite modeled improvements in adjusted EBITDA and free cash flow.

Collectively, the insider RSU settlement and share sale by Stern, the recent operating results, and the range of analyst outlooks illustrate the current crossroads facing Peloton as it works toward profitability and navigates revenue headwinds and fulfillment challenges.

Risks

  • Revenue and earnings shortfalls - Peloton’s fiscal Q2 revenue missed estimates and the company reported a larger-than-expected quarterly loss, indicating continued revenue pressure that affects investors and the consumer discretionary and fitness equipment sectors.
  • Operational headwinds - Analysts cited lower-than-expected hardware sales and delayed delivery times, risks that could further strain revenue and margin recovery in the retail and e-commerce channels Peloton serves.
  • Share-price volatility - The stock has fallen nearly 56% over the past year and traded near its 52-week low at the time of the insider sale, reflecting market sensitivity that can impact investor sentiment across equities focused on consumer discretionary and connected fitness.

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