Russell Investments Group Ltd. Boosts Stake in Lyft, Inc. $LYFT

Key Points

• Russell Investments increased its stake in Lyft by 20.5% to 1,260,048 shares (about $27.7M), and institutional investors now own roughly 83.07% of the company with other large managers like AQR and Victory also adding substantial positions.
• The Board authorized a $1.0 billion share buyback program to repurchase up to 15.1% of outstanding shares, signalling management believes the stock may be undervalued.
• Analysts have trimmed price targets recently and the consensus rating on Lyft is Hold with a consensus price target of about $19.63.

Russell Investments Group Ltd. grew its holdings in Lyft, Inc. (NASDAQ:LYFT - Free Report) by 20.5% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,260,048 shares of the ride-sharing company's stock after purchasing an additional 214,373 shares during the period. Russell Investments Group Ltd. owned approximately 0.31% of Lyft worth $27,741,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also modified their holdings of the company. AQR Capital Management LLC increased its position in shares of Lyft by 144.9% during the second quarter. AQR Capital Management LLC now owns 24,009,925 shares of the ride-sharing company's stock valued at $378,396,000 after acquiring an additional 14,205,143 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Lyft by 479.1% in the 3rd quarter. Victory Capital Management Inc. now owns 3,580,564 shares of the ride-sharing company's stock worth $78,808,000 after acquiring an additional 2,962,266 shares during the last quarter. Norges Bank purchased a new position in shares of Lyft during the 2nd quarter worth approximately $44,209,000. Marshall Wace LLP increased its holdings in Lyft by 75.7% in the 2nd quarter. Marshall Wace LLP now owns 5,464,934 shares of the ride-sharing company's stock valued at $86,127,000 after purchasing an additional 2,353,769 shares during the last quarter. Finally, Hennessy Advisors Inc. acquired a new stake in Lyft in the 3rd quarter valued at approximately $41,381,000. 83.07% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have commented on LYFT shares. Royal Bank Of Canada decreased their price target on Lyft from $27.00 to $22.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 11th. DA Davidson dropped their price objective on Lyft from $22.00 to $19.00 and set a "neutral" rating for the company in a research note on Wednesday, February 11th. Morgan Stanley set a $17.00 price objective on Lyft in a report on Wednesday, February 11th. Truist Financial decreased their target price on Lyft from $23.00 to $18.00 and set a "hold" rating on the stock in a research note on Wednesday, February 11th. Finally, Roth Mkm set a $22.00 target price on Lyft in a report on Wednesday, February 11th. Ten equities research analysts have rated the stock with a Buy rating, twenty-two have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Lyft currently has a consensus rating of "Hold" and a consensus price target of $19.63.

Insider Activity at Lyft

In related news, Director Jill Beggs sold 2,093 shares of the stock in a transaction on Friday, February 27th. The stock was sold at an average price of $13.89, for a total value of $29,071.77. Following the transaction, the director owned 32,185 shares of the company's stock, valued at $447,049.65. This represents a 6.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CAO Stephen W. Hope sold 5,284 shares of Lyft stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $13.83, for a total value of $73,077.72. Following the sale, the chief accounting officer directly owned 300,570 shares of the company's stock, valued at $4,156,883.10. This trade represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 31,038 shares of company stock valued at $416,841 over the last quarter. 3.07% of the stock is owned by insiders.

Lyft Price Performance

Shares of LYFT opened at $12.95 on Friday. Lyft, Inc. has a twelve month low of $9.66 and a twelve month high of $25.54. The firm's fifty day simple moving average is $16.07 and its 200-day simple moving average is $18.85. The firm has a market capitalization of $5.16 billion, a price-to-earnings ratio of 1.90, a PEG ratio of 0.80 and a beta of 1.92. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.31.

Lyft declared that its Board of Directors has initiated a share buyback plan on Tuesday, February 10th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the ride-sharing company to repurchase up to 15.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's leadership believes its stock is undervalued.

Trending Headlines about Lyft

Here are the key news stories impacting Lyft this week:

• Positive Sentiment: Safety and demand initiatives: Lyft partnered with road-safety groups and regional programs (including Nevada discounts for St. Patrick’s Day) to promote safe rides and drive incremental trip volume and PR goodwill. Zero Fatalities, Lyft team up to promote road safety
• Positive Sentiment: EV driver earnings edge: Reports show EV drivers on rideshare platforms have seen relative gains as gas prices rise, which may help Lyft retain or attract drivers and limit supply-side service degradation. EV Owners On Uber, Lyft Benefited From Rising Gas Prices
• Neutral Sentiment: Legal settlement leads to nationwide policy change: After a Minnesota suit over a blind passenger denied a ride with her service dog, Lyft agreed to a settlement and will guarantee service-animal rides across the U.S., improving compliance and reducing litigation risk but likely adding operational/training costs. Lyft settles MN complaint over denied rides
• Negative Sentiment: LAX surcharge could reduce ride volume/demand: Los Angeles International Airport approved a substantial per-trip rideshare fee (reports cite up to a $12 surcharge) that will likely push fares higher for riders to/from LAX, potentially reducing trip volume and hurting revenue growth in a key market. Uber and Lyft fees to LAX are going up
• Negative Sentiment: Near-term margin and sentiment pressure: Coverage notes Lyft is still unprofitable and the stock has moved lower since its last earnings — investors are focused on when operating leverage will meaningfully improve amid higher fuel costs and potential incremental compliance expenses. Lyft (LYFT) Down 4.9% Since Last Earnings Report
• Negative Sentiment: Driver behavior and fuel-cost headwinds: Rising gas prices are causing some ICE vehicle drivers to ration trips, which can reduce supply and raise per-trip driver costs or lead to higher incentives from Lyft to maintain availability. Drivers rethinking trips amid soaring gas prices

About Lyft

Lyft, Inc NASDAQ: LYFT operates a peer-to-peer ridesharing platform that connects passengers with drivers through a mobile application. Since its founding in 2012, the company has expanded beyond traditional ride-hailing to include bike and electric scooter rentals, while also offering rental cars and public transit options in select markets. Lyft's platform uses GPS mapping and dynamic pricing algorithms to optimize driver-passenger matches and route efficiency.

Headquartered in San Francisco, California, Lyft primarily serves urban and suburban markets across the United States and Canada.

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