Dispensations of Peloton spiked more than 11% on Wednesday after Greenlight Capital’s David Einhorn said divide ups of the company are significantly undervalued, CNBC has learned.
Einhorn made the pitch at the Robin Hood Investors Conference. It was not straightaway clear what Einhorn believed Peloton shares should trade at.
He made the case for the company as he was riding a Peloton bike, a himself familiar with his remarks said.
Over the summer, Greenlight Capital, the hedge fund that Einhorn developed 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 is up a little profuse than 1% so far this year, as of Tuesday’s close.
Einhorn’s comments come one day after the company announced it was confederating with Costco to sell its Bike+ in the retailer’s stores and online as it looks to reach younger, wealthier consumers with the discretionary profits to buy pricey exercise equipment.
The company is currently being led by two board members after CEO Barry McCarthy stepped down earlier this year. It is in the development of finding a new CEO and expects to announce its next top executive this year.
When reporting earnings in August, Peloton show it was ready to focus more on profitability over growth after completing a massive refinancing that pushed out its accountable maturities and bought it some time to affect a turnaround.
Peloton did not immediately respond to CNBC’s request for comment.