Lyft (NASDAQ:LYFT) Shares Up 11.9% – Time to Buy?

Lyft, Inc. (NASDAQ:LYFT)’s share price was up 11.9% on Wednesday. The company traded as high as $18.62 and last traded at $18.6460. 5,528,561 shares were traded during trading, a decline of 59% from the average daily volume of 13,598,369 shares. The stock had previously closed at $16.67.

Key Lyft News

Here are the key news stories impacting Lyft this week:

• Positive Sentiment: Lyft reported record rides and gross bookings, with rider growth extending to an eighth consecutive quarter of double-digit gains. Management also highlighted strong bookings and EBITDA, suggesting underlying business momentum. Article: Lyft CEO on Q3 results
• Positive Sentiment: Lyft introduced Lyft Go, a $9.99 monthly membership bundling DoorDash DashPass with 8% credits on Lyft rides and DoorDash orders. The company also plans to expand its Waymo robotaxi fleet in Nashville by year-end and says autonomous vehicles are not hurting its business. Article: Lyft and DoorDash membership Article: Waymo fleet expansion
• Neutral Sentiment: Rosenblatt Securities lowered its price target from $19 to $18 and maintained a neutral rating. The reduced target reflects tempered expectations, although it remains above the cited share price. Article: Rosenblatt Securities rating
• Negative Sentiment: Lyft’s reported third-quarter loss of $0.03 per share and $1.82 billion in revenue fell short of analyst estimates of $0.20 per share and $1.92 billion, respectively. Revenue still grew 8.1% year over year, but a roughly $117.9 million legal, tax and regulatory reserve charge weighed on results. The company’s in-line outlook did little to offset the earnings disappointment. Article: Lyft posts surprise loss

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Jefferies Financial Group lifted their price target on shares of Lyft from $15.00 to $15.50 and gave the stock a “hold” rating in a report on Tuesday, July 14th. The Goldman Sachs Group reiterated a “buy” rating and issued a $20.00 price objective on shares of Lyft in a research note on Friday. JPMorgan Chase & Co. increased their price objective on Lyft from $18.00 to $19.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Morgan Stanley raised their target price on Lyft from $17.00 to $18.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $20.00 target price on shares of Lyft in a research note on Tuesday, August 18th. Ten equities research analysts have rated the stock with a Buy rating, twenty-five have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Lyft has a consensus rating of “Hold” and a consensus price target of $19.00.

Lyft Stock Performance

The company has a market capitalization of $6.27 billion, a P/E ratio of 2.42, a P/E/G ratio of 1.16 and a beta of 2.06. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 0.33. The company’s fifty day moving average is $16.20 and its 200 day moving average is $15.13.

Lyft (NASDAQ:LYFT) last issued its earnings results on Thursday, November 5th. The ride-sharing company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.23). Lyft had a net margin of 42.32% and a negative return on equity of 1.20%. The business had revenue of $1.82 billion for the quarter, compared to the consensus estimate of $1.92 billion. During the same period in the previous year, the firm earned $0.11 EPS. The company’s revenue was up 8.1% compared to the same quarter last year. As a group, equities analysts anticipate that Lyft, Inc. will post 0.81 earnings per share for the current year.

Insider Activity

In other news, CAO Stephen Hope sold 5,982 shares of the stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $17.34, for a total value of $103,727.88. Following the sale, the chief accounting officer directly owned 299,974 shares of the company’s stock, valued at approximately $5,201,549.16. This represents a 1.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jill Beggs sold 2,307 shares of the stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $17.34, for a total transaction of $40,003.38. Following the completion of the sale, the director directly owned 46,238 shares in the company, valued at approximately $801,766.92. The trade was a 4.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 61,586 shares of company stock valued at $1,024,326. 0.92% of the stock is currently owned by insiders.

Institutional Trading of Lyft

Several institutional investors and hedge funds have recently bought and sold shares of LYFT. Principal Financial Group Inc. lifted its holdings in Lyft by 250.0% in the 1st quarter. Principal Financial Group Inc. now owns 4,246,519 shares of the ride-sharing company’s stock worth $56,479,000 after buying an additional 3,033,333 shares during the period. Altshuler Shaham Ltd grew its position in shares of Lyft by 51.6% in the 1st quarter. Altshuler Shaham Ltd now owns 7,662,027 shares of the ride-sharing company’s stock worth $101,905,000 after buying an additional 2,607,417 shares during the last quarter. Junto Capital Management LP bought a new stake in shares of Lyft in the 2nd quarter worth approximately $36,926,000. Dimensional Fund Advisors LP grew its position in shares of Lyft by 58.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,720,478 shares of the ride-sharing company’s stock worth $89,360,000 after buying an additional 2,467,010 shares during the last quarter. Finally, Pacer Advisors Inc. increased its stake in shares of Lyft by 62.2% during the first quarter. Pacer Advisors Inc. now owns 3,189,313 shares of the ride-sharing company’s stock valued at $42,418,000 after buying an additional 1,223,536 shares during the period. 83.07% of the stock is currently owned by hedge funds and other institutional investors.

Lyft Company Profile

Lyft, Inc is a technology company that operates a transportation network platform in the United States and Canada. Its platform connects passengers with drivers through a mobile application and website, primarily offering on-demand rides in private vehicles, taxis and other transportation options.

The company also provides access to bicycles and scooters in select markets, as well as vehicle rentals and transportation solutions for businesses, healthcare organizations and other institutions.