Lyft (NASDAQ:LYFT) Price Target Cut to $14.50 by Analysts at DA Davidson

Key Points

• DA Davidson cut its price target on Lyft from $19.00 to $14.50 while keeping a neutral rating, implying about 8% upside from the current price.
• Lyft reported Q1 earnings of $0.04 per share, missing analysts’ estimate of $0.30, though revenue of $1.65 billion came in slightly above expectations and rose 17.2% year over year.
• The company authorized a $1.0 billion share buyback, while several insiders recently sold shares and analyst sentiment remains mixed, with a consensus rating of Hold.

Lyft (NASDAQ:LYFT - Get Free Report) had its price objective dropped by DA Davidson from $19.00 to $14.50 in a research note issued on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the ride-sharing company's stock. DA Davidson's price objective suggests a potential upside of 8.17% from the company's current price.

Several other equities analysts have also recently commented on the company. KeyCorp reaffirmed a "sector weight" rating on shares of Lyft in a report on Wednesday, February 11th. Guggenheim cut their price target on Lyft from $26.00 to $22.00 and set a "buy" rating for the company in a report on Wednesday, February 11th. JPMorgan Chase & Co. upped their price target on Lyft from $17.00 to $18.00 and gave the company a "neutral" rating in a report on Friday, May 8th. Wells Fargo & Company cut their price target on Lyft from $26.00 to $18.00 and set an "equal weight" rating for the company in a report on Wednesday, February 11th. Finally, Evercore set a $21.00 price target on Lyft in a report on Wednesday, February 11th. Nine analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $19.13.

Lyft Stock Performance

NASDAQ:LYFT traded up $0.44 during mid-day trading on Monday, hitting $13.41. 8,127,284 shares of the company's stock traded hands, compared to its average volume of 16,296,128. The firm has a 50 day moving average of $13.69 and a two-hundred day moving average of $16.94. Lyft has a 12 month low of $12.46 and a 12 month high of $25.54. The firm has a market capitalization of $5.09 billion, a price-to-earnings ratio of 1.96, a price-to-earnings-growth ratio of 0.80 and a beta of 1.84. The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 0.33.

Lyft (NASDAQ:LYFT - Get Free Report) last announced its earnings results on Thursday, May 7th. The ride-sharing company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.26). Lyft had a net margin of 43.82% and a negative return on equity of 2.09%. The business had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the previous year, the company earned $0.01 EPS. Lyft's revenue for the quarter was up 17.2% compared to the same quarter last year. On average, equities analysts forecast that Lyft will post 0.66 earnings per share for the current fiscal year.

Lyft declared that its Board of Directors has initiated a share buyback program on Tuesday, February 10th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the ride-sharing company to purchase up to 15.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Insider Transactions at Lyft

In related news, CAO Stephen W. Hope sold 5,284 shares of the firm's stock in a transaction on Friday, February 27th. The stock was sold at an average price of $13.83, for a total transaction of $73,077.72. Following the completion of 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Lindsay Catherine Llewellyn sold 23,661 shares of the firm's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $13.30, for a total value of $314,691.30. Following the sale, the insider directly owned 696,850 shares of the company's stock, valued at $9,268,105. This represents a 3.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 54,699 shares of company stock valued at $771,756. Corporate insiders own 0.92% of the company's stock.

Institutional Investors Weigh In On Lyft

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Amalgamated Bank increased its holdings in Lyft by 2.5% during the 3rd quarter. Amalgamated Bank now owns 21,652 shares of the ride-sharing company's stock valued at $477,000 after purchasing an additional 534 shares in the last quarter. Brown Brothers Harriman & Co. increased its holdings in Lyft by 23.2% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 3,399 shares of the ride-sharing company's stock valued at $75,000 after purchasing an additional 639 shares in the last quarter. CI Investments Inc. increased its holdings in Lyft by 39.1% during the 3rd quarter. CI Investments Inc. now owns 2,321 shares of the ride-sharing company's stock valued at $51,000 after purchasing an additional 653 shares in the last quarter. PNC Financial Services Group Inc. increased its holdings in Lyft by 5.6% during the 4th quarter. PNC Financial Services Group Inc. now owns 12,808 shares of the ride-sharing company's stock valued at $248,000 after purchasing an additional 681 shares in the last quarter. Finally, Allegiance Financial Group Advisory Services LLC increased its holdings in Lyft by 4.3% during the 4th quarter. Allegiance Financial Group Advisory Services LLC now owns 18,153 shares of the ride-sharing company's stock valued at $352,000 after purchasing an additional 756 shares in the last quarter. 83.07% of the stock is owned by institutional investors and hedge funds.

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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