David Einhorn speaks at the 2024 Sohn Conference in New York City on April 3, 2024.
Adam Jeffery | CNBC
Shares of Peloton rose more than 11% on Wednesday after Greenlight Capital’s David Einhorn said the company’s shares were significantly undervalued, CNBC said.
A person familiar with his comments said Einhorn made the pitch to investors while he was riding a Peloton bike. It’s unclear at what level Einhorn believes Peloton stock will trade.
Over the summer, Greenlight Capital, the hedge fund Einhorn founded in 1996, disclosed it had a $6.8 million stake in the company as of June 30.
Peloton’s stock tends to be volatile and was up a little more than 1% this year, as of Tuesday’s close.
Einhorn’s comments came a day after the company announced it it is partnering with Costco to sell its Bike+ at retail stores and online as it wants to reach younger, wealthier consumers with the discretionary income to buy expensive exercise equipment.
The company is is currently led by two board members after CEO Barry McCarthy resigned earlier this year. The company is in the process of searching for a new CEO and is expected to announce the next chief executive this year.
When it reported earnings in August, Peloton said it was ready to focus more on profits instead of growth after completed a major refinancing pushed out the maturity date of its debt and gave it more time to influence the turnaround.
Peloton did not immediately respond to CNBC’s request for comment.
