Lyft, Inc. (NASDAQ:LYFT) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts remain cautious on Lyft: Thirty-seven brokerages give the stock a consensus “Hold” rating, with 20 holds, 13 buys and four sells. The average 12-month price target is $19.40, above the reported opening price of $15.45.
• Recent results were mixed: Lyft reported quarterly revenue of $1.65 billion, up 17.2% year over year and slightly ahead of expectations, but adjusted earnings per share of $0.04 missed the $0.30 consensus estimate.
• Growth opportunities are balanced by risks: International robotaxi testing with Baidu and a new board appointment support Lyft’s autonomous-mobility strategy, while legal-liability concerns, competition, AI-based pricing scrutiny and recent insider selling remain potential headwinds.

Lyft, Inc. (NASDAQ:LYFT - Get Free Report) has been assigned a consensus recommendation of "Hold" from the thirty-seven ratings firms that are covering the firm, Marketbeat Ratings reports. Four research analysts have rated the stock with a sell rating, twenty have assigned a hold rating and thirteen have given a buy rating to the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $19.40.

A number of equities research analysts recently weighed in on the company. JPMorgan Chase & Co. upped their price target on Lyft from $17.00 to $18.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Jefferies Financial Group lifted their price objective on Lyft from $15.00 to $15.50 and gave the stock a "hold" rating in a report on Tuesday, July 14th. Citigroup began coverage on Lyft in a research report on Wednesday, June 17th. They set a "buy" rating on the stock. Canaccord Genuity Group lowered their target price on Lyft from $16.00 to $15.00 and set a "hold" rating on the stock in a report on Friday, May 8th. Finally, Roth Capital restated a "buy" rating and issued a $23.00 price target on shares of Lyft in a research report on Friday, May 8th.

Lyft Stock Up 2.4%

LYFT stock opened at $15.45 on Wednesday. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.33. The company's 50-day moving average price is $14.54 and its 200 day moving average price is $14.67. Lyft has a 52 week low of $12.46 and a 52 week high of $25.54. The company has a market cap of $5.87 billion, a P/E ratio of 2.26, a P/E/G ratio of 0.90 and a beta of 1.80.

Lyft (NASDAQ:LYFT - Get Free Report) last issued its earnings results on Thursday, May 7th. The ride-sharing company reported $0.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.30 by ($0.26). Lyft had a net margin of 43.82% and a negative return on equity of 2.09%. The company had revenue of $1.65 billion during the quarter, compared to analysts' expectations of $1.63 billion. During the same period last year, the business posted $0.01 earnings per share. The company's quarterly revenue was up 17.2% on a year-over-year basis. On average, research analysts expect that Lyft will post 0.69 earnings per share for the current fiscal year.

Lyft News Roundup

Here are the key news stories impacting Lyft this week:

• Positive Sentiment: Robotaxi testing expands internationally: Lyft and Baidu have begun testing autonomous vehicles in London through Lyft’s partnership with Baidu and Freenow, which Lyft owns. The initiative strengthens Lyft’s positioning in the emerging robotaxi market and could create long-term growth opportunities, although commercial deployment and financial benefits remain uncertain. Lyft and Baidu enter London's robotaxi battleground as testing begins
• Positive Sentiment: New board appointment adds operating experience: Alaska Air Group CEO Ben Minicucci joined Lyft’s board, bringing public-company, transportation and international operating expertise as Lyft develops its mobility and autonomous-driving strategy. Lyft Welcomes Ben Minicucci to Board of Directors
• Neutral Sentiment: Insurance transaction completed: RiverStone completed a loss portfolio transfer involving a Lyft unit. Such a deal may reduce legacy insurance exposure and improve risk management, but the articles provide no financial terms to determine the effect on earnings or cash flow. RiverStone completes LPT deal with Lyft unit
• Neutral Sentiment: Valuation rerating has not materialized: A market commentary article argues that Lyft’s earlier investment thesis has worked operationally but that investors have yet to assign the company a higher valuation, highlighting continued skepticism despite improved fundamentals. Lyft: The Trade Worked, But The Re-Rating Has Yet To Arrive
• Negative Sentiment: Legal and competitive risks remain prominent: A short seller warned that alleged sexual-assault-related claims could create multibillion-dollar liabilities, while coverage of new competitor Throo underscores pressure from rival ride-hailing platforms. These claims are allegations, but they could increase litigation costs and weigh on investor confidence. Lyft legal-liability short-seller warning
• Negative Sentiment: AI pricing practices may attract scrutiny: Consumer Reports’ review of how Uber and Lyft use AI to determine fares could raise concerns about pricing transparency, customer trust and possible regulatory oversight. Consumer Reports: How Uber and Lyft use AI to set what you pay

Insider Buying and Selling at Lyft

In related news, CFO Erin Brewer sold 15,000 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $13.59, for a total value of $203,850.00. Following the sale, the chief financial officer directly owned 705,979 shares of the company's stock, valued at approximately $9,594,254.61. This represents a 2.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lindsay Catherine Llewellyn sold 11,491 shares of the firm's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $15.00, for a total transaction of $172,365.00. Following the transaction, the insider owned 853,731 shares of the company's stock, valued at $12,805,965. This trade represents a 1.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 45,535 shares of company stock valued at $637,456 over the last 90 days. 0.92% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LYFT. Empowered Funds LLC grew its holdings in Lyft by 13.7% during the 1st quarter. Empowered Funds LLC now owns 24,213 shares of the ride-sharing company's stock valued at $287,000 after buying an additional 2,921 shares during the last quarter. Focus Partners Wealth boosted its stake in shares of Lyft by 44.0% during the first quarter. Focus Partners Wealth now owns 51,102 shares of the ride-sharing company's stock valued at $607,000 after acquiring an additional 15,621 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in Lyft during the 2nd quarter worth about $470,000. Invesco Ltd. increased its position in Lyft by 87.5% during the 2nd quarter. Invesco Ltd. now owns 1,064,930 shares of the ride-sharing company's stock worth $16,783,000 after purchasing an additional 497,118 shares in the last quarter. Finally, California Public Employees Retirement System increased its position in Lyft by 12.6% during the 2nd quarter. California Public Employees Retirement System now owns 709,188 shares of the ride-sharing company's stock worth $11,177,000 after purchasing an additional 79,634 shares in the last quarter. 83.07% of the stock is owned by hedge funds and other institutional investors.

Lyft Company Profile

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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