Not just like that: Peloton execs dumped stock ahead of production pause

Who knew indoor spin bikes could drum up so much controversy? Peloton’s stock came crashing down this week following the company’s announcement it was pausing production on its spin bikes and Tread+ treadmills due to lack of demand.

Yes, that’s the same Peloton that closed out 2021 with a very unwanted cameo on Sex and the City’s reboot, And Just Like That. The brand responded quickly with its own PR spin, featuring Canadian actor Ryan Reynolds. Then the ad, which was not the first time Reynolds had stepped into Peloton’s world, was subsequently pulled as Chris Noth became embroiled in his own controversy. That dizzying sequence was far from the first bump in the road for the brand that took off during the early days of the pandemic.

You may also recall it is the same Peloton that issued a recall of its Tread+ machine following a tragic incident in the U.S. Before that, the brand drew the internet’s ire for its cringe-worthy “scared Peloton woman” holiday ad campaign.

Execs dump $500 million in stock

But there is more, somehow. Ahead of the crash, Peloton executives were selling off their stock in the company, CNBC Business reports. Between John Foley, the comapany’s CEO and co-founder, and several other board members and company insiders cashed out on $500 million in stock.

After this week’s crash, Peloton is trading at a new year low of $29. Most executive and board sales, which occurred throughout the fall of 2021, took place when it was trading over $110.

RELATED: Why I changed my mind about the Peloton Bike

This week’s production pause, and subsequent crash, follows earlier news that the brand was expecting far lower demand for its spin bikes and treadmills as pandemic restrictions lift and users return to gyms. It’s part of a long fall for the brand that, just 14 months ago, was signing partnership deals with megastars like Beyoncé.

Which is too bad. As much as cyclists love to tear into the momentarily-ubiquitous spin bikes, the Peloton Bike+ is a surprisingly promising tool to stay bike-fit. Before the brand’s woes dragged it down, it was rolling out innovative new bike-specific features, too.