Why is Peloton stock losing money today?

Peloton was one of the best-performing stocks during the pandemic lockdown, people love it, people bought a lot of their treadmills, bikes, etc to work out at home due to the fear of catching covid at gyms or in the public. Now that the world has opened back up, Peloton's stock price is taking the hit. It has dropped significantly from its 52 weeks high price of $166.57 per share to $29.11 per share, the stock is now down over 80 percent from its all-time high.  

Peloton stock dropped to the new low because the stock insiders old over $500 worth of stock.  The CEO and co-founder of Peloton, John Foley sold $119 million worth of stocks, starting in November 2020, says people familiar with the matter. The president of the company, William Lynch and Hisao Kushi, the co-founder and chief of legal and cultural affairs also sold a lot of Peloton shares. 

Here is the list of other insiders that sold.

• Hisao Kushi, co-founder, and chief legal and culture officer sold more than $90 million of his shares — most at prices above $110 a share.
• Tom Cortese, who sold more than $60 million of his stock.
• Mariana Garavaglia, chief operating officer, who tallied more than $25 million in sales.
• Members of the board have also cashed out their holdings, including Karen Boone, who sold more than $20 million in stock last February at prices above $140 a share, according to filings.

“One of the most well-accepted facts from decades of research on insider trading is that corporate insiders buy near bottoms and sell near peaks,” said Daniel Taylor, an associate professor at the Wharton School.

Peloton stock is having a big issue with keeping the stock price up and today the SEC halted PTON stock from trading lower.