Notable Peloton Interactive Insider Trades $175K In Company Stock

Mariana Garavaglia, Insider at Peloton Interactive PTON, made a large buy and sell of company shares on November 16, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Mariana Garavaglia exercised options to purchase 9,364 Peloton Interactive shares for $0 on November 16. They then sold their shares on the same day in the open market. They sold at prices ranging from $52.60 to $53.36 to raise a total of $175,150 from the stock sale.

Following the transaction, Garavaglia still owns 14,044 shares of Peloton Interactive worth $708,098.00.

Peloton Interactive shares are trading down 1.39% at $50.42 at the time of this writing on Thursday morning.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Peloton Interactive's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.