Peloton ( NASDAQ:PTON )
Peloton stock prices are declining again. The founder and previous executive chairman of Peloton ( NASDAQ:PTON ), John Foley, was reportedly subject to many margins calls on the money he had borrowed against Peloton stock before his resignation, as reported by The Wall Street Journal on Wednesday morning.
As of 11:04 a.m ET, Peloton stock is trading down 7.1%, while the Dow Jones Industrial Average is up 142 points, or 1.4%, and the S&P 500 is flat.
What’s the Reason?
By the end of September 2021, the Journal claims that Foley had guaranteed 3.5 million Peloton stock as security on loans from Goldman Sachs, or around 20% of his interests.
Peloton stock value then was roughly $300 million, but it’s now only worth around $30 million.
The value of Foley’s interests has dropped from $1.5 billion to about $100 million.
The sarcastic observation accompanied his resignation from the firm last month, “This was not a pleasurable personal balance-sheet reset.” Still, he maintains that the margin calls had no role in his decision.
What’s Next?
The Journal notes that Foley’s position on the board made it more difficult for him to come up with the funds to pay off the loans in the face of the margin calls. This is because most corporations prevent executives and directors from se...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube