Durable Capital Partners, led by former T. Rowe Price chief investment officer Henry Ellenbogen, has bought 5.4 million shares of the company known for its stationary bikes, treadmills and on-demand courses, according to regulatory documents filed Monday.
Ricky Sandler’s Eminence Capital bought 2.6 million shares. Scott Ferguson’s Sachem Head Capital Management took a new stake with 1.6 million shares, according to filings.
The 13-F filings require fund managers to itemize the number of shares they held in US companies at the end of the previous quarter. Although these statements are retrospective, they are closely monitored to identify potential investment trends.
Tiger Global Management, which was already an investor in Peloton, bought an additional 3 million shares, increasing its investment by 41%, and Baillie Gifford, Peloton’s largest shareholder, added an additional 3.4 million shares, thereby increasing its stake to 12%, according to the filings.
Coatue Management was among those to trim its position in the fourth quarter, selling 3.7 million shares and reducing its stake by 89%, according to filings.
It is unclear when investors bought. On December 31, the last day of the quarter, Peloton was trading at $35.76, down significantly from the start of the quarter ($86.71).
Since then, Peloton shares have slid further. They traded at $32.63 on Monday. The company’s value fell $11.5 billion, a far cry from its peak of $50 billion.
Last month, activist investment firm Blackwells Capital began suggesting that the company is selling itself. Some potential buyers appear to have spoken with bankers even though Peloton has let it be known that it is not for sale.
As Peloton became a pandemic-era darling, its fortunes began to wane due to supply chain issues, slow sales as gyms reopened, high costs and the recall of one of its products.
Last week, the company announced that John Foley, co-founder and chief executive, had been named executive chairman and replaced as chief executive by former Netflix and Spotify chief financial officer Barry McCarthy.
Stock market analysts have generally welcomed McCarthy, but the stock price remains depressed.