Lyft (NASDAQ:LYFT) Shares Gap Down on Disappointing Earnings

Lyft, Inc. (NASDAQ:LYFT) shares gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $14.39, but opened at $12.28. Lyft shares last traded at $13.24, with a volume of 28,757,998 shares traded.

The ride-sharing company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.10). Lyft had a negative return on equity of 1.58% and a negative net margin of 1.19%.

Lyft announced that its Board of Directors has authorized a share buyback program on Tuesday, February 11th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the ride-sharing company to purchase up to 8.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on LYFT. Canaccord Genuity Group increased their price target on Lyft from $18.00 to $22.00 and gave the stock a “buy” rating in a report on Thursday, November 7th. Wells Fargo & Company reduced their target price on Lyft from $17.00 to $14.00 and set an “equal weight” rating for the company in a research note on Thursday, January 16th. Bank of America raised their price target on shares of Lyft from $19.00 to $21.00 and gave the company a “buy” rating in a research report on Tuesday. Benchmark raised shares of Lyft from a “hold” rating to a “buy” rating and set a $20.00 price target on the stock in a research report on Monday, January 6th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of Lyft in a research report on Wednesday. Twenty-seven analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $17.50.

Insiders Place Their Bets

In other news, Director Logan Green sold 10,919 shares of the company’s stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $17.25, for a total transaction of $188,352.75. Following the completion of the transaction, the director now directly owns 314,492 shares of the company’s stock, valued at approximately $5,424,987. This represents a 3.36 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 3.07% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lyft

Hedge funds and other institutional investors have recently modified their holdings of the company. True Wealth Design LLC purchased a new position in shares of Lyft during the third quarter valued at about $27,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Lyft during the fourth quarter valued at about $29,000. ORG Wealth Partners LLC purchased a new position in shares of Lyft during the fourth quarter valued at about $31,000. Byrne Asset Management LLC purchased a new position in shares of Lyft during the fourth quarter valued at about $35,000. Finally, Plato Investment Management Ltd purchased a new position in shares of Lyft during the fourth quarter valued at about $35,000. 83.07% of the stock is owned by institutional investors.

Lyft Price Performance

The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.88. The firm’s 50-day moving average is $14.00 and its 200-day moving average is $13.52. The company has a market cap of $5.52 billion, a PE ratio of -83.16, a PEG ratio of 1.94 and a beta of 2.16.

Lyft Company Profile

Lyft, Inc operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips.