Shares of Peloton surge 11% after David Einhorn says stock is significantly undervalued

Shares of Peloton spiked much than 11% connected Wednesday aft Greenlight Capital's David Einhorn said shares of the institution are importantly undervalued, CNBC has learned. 

Einhorn made the transportation astatine the Robin Hood Investors Conference. It was not instantly wide what Einhorn believed Peloton shares should commercialized at.

He made the lawsuit for the institution arsenic helium was riding a Peloton bike, a idiosyncratic acquainted with his remarks said. 

Over the summer, Greenlight Capital, the hedge money that Einhorn founded successful 1996, disclosed it had a $6.8 cardinal involvement successful the institution arsenic of June 30. 

Peloton's banal tends to beryllium volatile and is up a small much than 1% truthful acold this year, arsenic of Tuesday's close. 

Einhorn's comments travel 1 time aft the institution announced it was partnering with Costco to merchantability its Bike+ successful the retailer's stores and online arsenic it looks to scope younger, wealthier consumers with the discretionary income to bargain pricey workout equipment. 

The institution is currently being led by 2 committee members aft CEO Barry McCarthy stepped down earlier this year. It is successful the process of uncovering a caller CEO and expects to denote its adjacent apical enforcement this year.

When reporting net successful August, Peloton indicated it was acceptable to absorption much connected profitability implicit maturation aft completing a monolithic refinancing that pushed retired its indebtedness maturities and bought it immoderate clip to impact a turnaround. 

Peloton did not instantly respond to CNBC's petition for comment.