Smart Finance APP noticed that after David Einhorn, the founder and president of Greenlight Capital, stated that the stock price of Peloton (PTON.US) was severely undervalued, the company's stock price surged more than 11% on Wednesday.

David Einhorn made this suggestion at the Robin Hood Investors Conference. It is currently unclear how much Einhorn believes Peloton's stock price should be.

An informant stated that he defended the company while 'riding' a Peloton bike.

This summer, Greenlight Capital, David Einhorn's hedge fund, disclosed that it holds $6.8 million worth of shares in the company as of June 30.

Peloton's stock price often fluctuates significantly, with the stock's gain slightly exceeding 1% year-to-date as of the close of Tuesday.

The day before Einhorn made the above remarks, the company announced a partnership with Costco to sell Bike+ in the retailer's stores and online, aiming to attract younger, wealthier consumers with enough disposable income to purchase expensive fitness equipment.

After Chief Executive Officer Barry McCarthy resigned earlier this year, the company is currently led by two members of the board of directors. The company is looking for a new CEO and is expected to announce the next CEO later this year.

In August, when Peloton announced its performance, the company stated that after completing a large-scale refinancing, it is preparing to focus more on profitability rather than growth. This refinancing postponed its debt maturity date, buying some time for the company to turn around.