Peloton's Stock Price Rises 11% Following David Einhorn's Praise

• David Einhorn of Greenlight Capital stated that Peloton's stock is significantly undervalued, according to information shared with investors.
• A source familiar with the comments told CNBC that the hedge fund boss made the pitch while on a Peloton.
• Currently, Peloton, famous for its Bike and Tread machines, is undergoing a transformation and is in search of a new CEO.

On Wednesday, shares of spiked more than 11% after Greenlight Capital's David Einhorn stated that the company's shares are significantly undervalued, according to CNBC.

While riding a Peloton bike, Einhorn presented his pitch to investors. It was unclear what Peloton shares he believed they should trade at.

In June 2021, Greenlight Capital, a hedge fund founded by Einhorn in 1996, revealed its $6.8 million stake in the company.

As of Tuesday's close, Peloton's stock has risen more than 1% this year, although it tends to be volatile.

Costco has partnered with Einhorn to sell its Bike+ in its stores and online, targeting younger, wealthier consumers with the ability to purchase expensive exercise equipment.

The company is currently being led by two board members and is in the process of finding a new CEO, with an announcement of its next top executive expected this year.

In August, Peloton announced that it planned to prioritize profitability over growth after completing a significant refinancing that extended its debt maturities and provided some breathing room to execute a turnaround.

Peloton didn't immediately return a request for comment from CNBC.