Lyft (NASDAQ:LYFT) Stock Price Down 7.3% – What’s Next?

Lyft, Inc. (NASDAQ:LYFT) shares traded down 7.3% on Wednesday . The company traded as low as $15.15 and last traded at $15.0550. Approximately 9,927,713 shares changed hands during trading, a decline of 32% from the average session volume of 14,569,576 shares. The stock had previously closed at $16.24.

Trending Headlines about Lyft

Here are the key news stories impacting Lyft this week:

• Positive Sentiment: Waymo partnership expands Lyft’s autonomous-vehicle offering. Nashville riders can now request Waymo driverless rides through the Lyft app, potentially strengthening Lyft’s role as a marketplace and generating future booking and platform revenue without requiring Lyft to build its own robotaxi fleet. Lyft launches driverless Waymo rides in Nashville
• Positive Sentiment: Management reaffirmed its third-quarter outlook. The internal appointment of Michael Brous as CFO may provide continuity, while Lyft maintained its guidance for gross bookings, adjusted EBITDA and adjusted EBITDA margin. Scotiabank initiated coverage with a “Hold” rating and a $17 price target, above the referenced $15.02 price. Lyft insider to take CFO seat amid robotaxi push
• Neutral Sentiment: Analysts see limited near-term downside in the pullback. A technical signal cited by market commentary suggests Lyft’s recent weakness could be short-lived, although the signal is not a fundamental change to earnings expectations. Lyft Stock Pullback Could Be Short-Lived Says Signal
• Negative Sentiment: The CFO change initially unsettled investors. Erin Brewer is retiring later this month, with Brous taking over on September 28. Although the transition is internal and guidance was reaffirmed, it adds uncertainty around financial leadership. Reported insider activity also shows numerous sales and no purchases over the past six months, which may be weighing on sentiment. Lyft Slides as CFO Transition Overshadows Reaffirmed Outlook
• Negative Sentiment: Labor and liability risks remain overhangs. California regulators cleared the way for a union representing Uber and Lyft drivers, potentially increasing labor-related costs or reducing operating flexibility. Separate reports of alleged driver abductions and a civil lawsuit add reputational and legal-risk concerns. California clears the way for Uber and Lyft driver union

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. William Blair downgraded shares of Lyft to a “market perform” rating in a research note on Wednesday, June 17th. UBS Group increased their price objective on Lyft from $16.00 to $17.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Wells Fargo & Company increased their price objective on Lyft from $18.00 to $19.00 and gave the company an “equal weight” rating in a report on Friday, August 7th. Guggenheim reaffirmed a “buy” rating on shares of Lyft in a research report on Wednesday, June 10th. Finally, Zacks Research raised Lyft from a “strong sell” rating to a “hold” rating in a report on Wednesday, August 5th. Thirteen equities research analysts have rated the stock with a Buy rating, twenty-four have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $19.69.

Lyft Price Performance

The company has a market capitalization of $5.73 billion, a price-to-earnings ratio of 2.20, a P/E/G ratio of 1.02 and a beta of 1.83. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.59 and a current ratio of 0.59. The business has a 50 day moving average price of $16.28 and a 200-day moving average price of $14.69.

Lyft (NASDAQ:LYFT) last released its earnings results on Thursday, August 6th. The ride-sharing company reported $0.13 EPS for the quarter, missing the consensus estimate of $0.14 by ($0.01). The business had revenue of $1.84 billion for the quarter, compared to analyst estimates of $1.81 billion. Lyft had a negative return on equity of 1.20% and a net margin of 42.32%.The company’s revenue for the quarter was up 16.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.10 EPS. Research analysts predict that Lyft, Inc. will post 0.73 EPS for the current fiscal year.

Insider Activity at Lyft

In related news, insider Lindsay Llewellyn sold 13,204 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $16.64, for a total transaction of $219,714.56. Following the transaction, the insider directly owned 781,152 shares of the company’s stock, valued at $12,998,369.28. This represents a 1.66% decrease in their ownership of the stock. The sale 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, CAO Stephen W. Hope sold 5,982 shares of the firm’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $17.34, for a total transaction of $103,727.88. Following the completion of the sale, the chief accounting officer owned 299,974 shares of the company’s stock, valued at $5,201,549.16. The trade was a 1.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 97,020 shares of company stock worth $1,630,959. Corporate insiders own 0.92% of the company’s stock.

Hedge Funds Weigh In On Lyft

Several institutional investors have recently made changes to their positions in the stock. Brown Brothers Harriman & Co. grew its position 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 worth $75,000 after acquiring an additional 639 shares during the last quarter. PNC Financial Services Group Inc. increased its stake in Lyft by 5.6% in the 4th quarter. PNC Financial Services Group Inc. now owns 12,808 shares of the ride-sharing company’s stock worth $248,000 after purchasing an additional 681 shares during the period. Public Employees Retirement System of Ohio lifted its position in Lyft by 0.5% in the third quarter. Public Employees Retirement System of Ohio now owns 167,399 shares of the ride-sharing company’s stock valued at $3,684,000 after purchasing an additional 771 shares during the last quarter. AlphaQuest LLC lifted its position in Lyft by 1.0% in the fourth quarter. AlphaQuest LLC now owns 89,753 shares of the ride-sharing company’s stock valued at $1,739,000 after purchasing an additional 854 shares during the last quarter. Finally, Essex Financial Services Inc. grew its holdings in shares of Lyft by 8.4% in the fourth quarter. Essex Financial Services Inc. now owns 11,238 shares of the ride-sharing company’s stock worth $218,000 after purchasing an additional 867 shares during the last quarter. Institutional investors and hedge funds own 83.07% of the company’s stock.

Lyft Company Profile

Lyft, Inc is a transportation technology company that operates a digital platform connecting passengers with drivers. Its core service is app-based ridesharing, allowing users to request rides, receive estimated fares, track trips and pay electronically. Lyft also offers transportation options such as scheduled rides, airport services and premium ride categories.

In addition to ridesharing, Lyft provides access to bikes and scooters in select markets and offers transportation-management tools through Lyft Business.