Lyft (NASDAQ:LYFT) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Lyft from “hold” to “strong sell,” even though other analysts remain mixed and the stock still carries an overall “Hold” consensus with an average target price of $19.40.
• Lyft shares were down 1.7% and opened at $15.17, near its 200-day moving average of $15.09 and below its 52-week high of $25.54.
• Latest earnings were mixed: Lyft reported $0.04 EPS, missing expectations, while revenue of $1.65 billion slightly beat estimates and rose 17.2% year over year.

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

A number of other equities research analysts have also commented on the stock. Tigress Financial reaffirmed a "buy" rating and issued a $28.00 price objective on shares of Lyft in a research report on Wednesday, June 24th. Oppenheimer began coverage on Lyft in a research note on Wednesday, June 17th. They issued an "outperform" rating on the stock. Royal Bank Of Canada cut their price target on Lyft from $22.00 to $18.00 and set an "outperform" rating on the stock in a report on Friday, May 8th. Sanford C. Bernstein started coverage on Lyft in a research report on Wednesday, June 17th. They set an "underperform" rating for the company. Finally, Truist Financial lifted their target price on Lyft from $15.00 to $16.00 and gave the company a "hold" rating in a research report on Friday, May 8th. Thirteen equities research analysts have rated the stock with a Buy rating, twenty have given a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $19.40.

Lyft Trading Down 1.7%

NASDAQ:LYFT opened at $15.17 on Tuesday. Lyft has a fifty-two week low of $12.46 and a fifty-two week high of $25.54. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.58 and a quick ratio of 0.58. The stock has a market capitalization of $5.76 billion, a PE ratio of 2.21, a price-to-earnings-growth ratio of 0.92 and a beta of 1.80. The business's 50-day simple moving average is $14.12 and its 200-day simple moving average is $15.09.

Lyft (NASDAQ:LYFT - Get Free Report) last posted 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). The business had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. Lyft had a negative return on equity of 2.09% and a net margin of 43.82%.Lyft's revenue for the quarter was up 17.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.01 earnings per share. Sell-side analysts expect that Lyft will post 0.69 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CAO Stephen W. Hope sold 5,460 shares of Lyft stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $13.76, for a total value of $75,129.60. Following the sale, the chief accounting officer owned 335,463 shares of the company's stock, valued at approximately $4,615,970.88. The trade was a 1.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Erin Brewer sold 15,000 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $13.59, for a total value of $203,850.00. Following the transaction, the chief financial officer directly owned 705,979 shares of the company's stock, valued at $9,594,254.61. This trade represents a 2.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 69,196 shares of company stock worth $992,371 over the last 90 days. 0.92% of the stock is currently owned by insiders.

Institutional Trading of Lyft

Several institutional investors and hedge funds have recently added to or reduced their stakes in LYFT. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Lyft during the 4th quarter worth about $26,000. Boreal Capital Management LLC acquired a new stake in Lyft in the 1st quarter valued at about $31,000. Bessemer Group Inc. grew its holdings in Lyft by 1,851.9% during the first quarter. Bessemer Group Inc. now owns 2,635 shares of the ride-sharing company's stock worth $35,000 after purchasing an additional 2,500 shares during the period. International Assets Investment Management LLC bought a new position in Lyft during the fourth quarter worth about $40,000. Finally, Huntington National Bank increased its position in Lyft by 171.8% during the fourth quarter. Huntington National Bank now owns 2,174 shares of the ride-sharing company's stock worth $42,000 after buying an additional 1,374 shares during the last quarter. 83.07% of the stock is owned by institutional investors.

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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