Lyft (NASDAQ:LYFT) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Lyft from “strong sell” to “hold”, reflecting a slightly improved analyst view. The broader analyst consensus remains cautious, with an average rating of Hold and an average price target of $18.83.
• Lyft’s latest earnings showed a mixed picture: revenue came in at $1.65 billion, above expectations, but earnings per share of $0.04 missed the $0.30 consensus estimate. The company also reported year-over-year revenue growth of 17.2%.
• Lyft authorized a $1.0 billion share repurchase program, which could signal management believes the stock is undervalued. The company has also seen notable institutional ownership, with 83.07% of shares held by institutional investors.

Lyft (NASDAQ:LYFT - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Wednesday,Zacks.com reports.

A number of other research firms have also recently issued reports on LYFT. KeyCorp reissued a "sector weight" rating on shares of Lyft in a research note on Wednesday, February 11th. Deutsche Bank Aktiengesellschaft dropped their price target on Lyft from $25.00 to $16.00 and set a "hold" rating on the stock in a research report on Wednesday, February 11th. Wedbush decreased their price objective on Lyft from $16.00 to $13.00 and set an "underperform" rating for the company in a research report on Wednesday, February 11th. Jefferies Financial Group lowered their target price on Lyft from $20.00 to $15.50 and set a "hold" rating for the company in a research note on Wednesday, February 11th. Finally, Mizuho dropped their target price on shares of Lyft from $16.00 to $15.00 and set a "neutral" rating on the stock in a report on Tuesday, March 3rd. Eight analysts have rated the stock with a Buy rating, twenty-three have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $18.83.

Lyft Stock Performance

Lyft stock opened at $13.48 on Wednesday. The company has a market cap of $5.12 billion, a PE ratio of 1.97, a PEG ratio of 0.83 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 has a 1 year low of $12.46 and a 1 year high of $25.54. The company's 50-day moving average is $13.69 and its two-hundred day moving average is $16.76.

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

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

Insider Activity

In other news, insider Lindsay Catherine Llewellyn sold 23,661 shares of the firm's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $15.00, for a total value of $354,915.00. Following the completion of the transaction, the insider owned 916,022 shares in the company, valued at $13,740,330. This trade represents a 2.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Stephen W. Hope sold 5,284 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $13.83, for a total value of $73,077.72. Following the completion of the transaction, the chief accounting officer owned 300,570 shares of the company's stock, valued at approximately $4,156,883.10. This represents a 1.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 54,699 shares of company stock worth $771,756 over the last ninety days. Insiders own 0.92% of the company's stock.

Institutional Trading of Lyft

Several institutional investors and hedge funds have recently added to or reduced their stakes in LYFT. Empowered Funds LLC grew its position in shares of Lyft by 13.7% in the 1st quarter. Empowered Funds LLC now owns 24,213 shares of the ride-sharing company's stock valued at $287,000 after acquiring an additional 2,921 shares during the period. Focus Partners Wealth lifted its stake in Lyft by 44.0% in the 1st quarter. Focus Partners Wealth now owns 51,102 shares of the ride-sharing company's stock valued at $607,000 after purchasing an additional 15,621 shares during the last quarter. Sivia Capital Partners LLC bought a new position in Lyft during the second quarter worth about $470,000. Invesco Ltd. grew its holdings in Lyft by 87.5% during the second 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 during the period. Finally, California Public Employees Retirement System increased its position in Lyft by 12.6% during the second quarter. California Public Employees Retirement System now owns 709,188 shares of the ride-sharing company's stock worth $11,177,000 after buying an additional 79,634 shares during the last quarter. 83.07% of the stock is owned by institutional investors.

Lyft News Summary

Here are the key news stories impacting Lyft this week:

• Positive Sentiment: RBC said Lyft remains on “stable competitive footing,” suggesting the company still has a defensible position even as investors worry about slower U.S. ride growth. Lyft's Competitive Position Remains Stable Despite Growth Concerns, RBC Says
• Neutral Sentiment: Lyft and Waymo are preparing to expand autonomous vehicle operations in Nashville, which could support long-term growth if the rollout goes smoothly. Lyft Fraud Scare And Nashville AV Rollout Test Investor Confidence
• Negative Sentiment: Multiple reports say a Lyft driver used AI-generated images to falsely claim damage fees from riders, including a $75 charge, which raises concerns about fraud prevention, rider protection, and Lyft’s ability to police misconduct on its platform. Lyft driver caught using fake AI damage photos to charge Boca Raton dad a fee

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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