There is no way Lyft Inc. (LYFT) can keep these numbers up

Lyft Inc. (NASDAQ: LYFT) stock jumped 8.37% on Friday to $15.40 against a previous-day closing price of $14.21. With 16.86 million shares changed hands, the volume of the stock remained heavier than its average volume of 15.18 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $15.46 whereas the lowest price it dropped to was $14.40. The 52-week range on LYFT shows that it touched its highest point at $45.65 and its lowest point at $9.66 during that stretch. It currently has a 1-year price target of $22.61. Beta for the stock currently stands at 1.56.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LYFT was up-trending over the past week, with a rise of 5.84%, but this was up by 49.22% over a month. Three-month performance surged to 18.28% while six-month performance rose 8.68%. The stock lost -58.28% in the past year, while it has gained 39.75% so far this year. A look at the trailing 12-month EPS for LYFT yields -3.65 with Next year EPS estimates of 0.88. For the next quarter, that number is 0.12. This implies an EPS growth rate of 43.50% for this year and 108.00% for next year.

Float and Shares Shorts:

At present, 356.48 million LYFT shares are outstanding with a float of 317.44 million shares on hand for trading. On Oct 13, 2022, short shares totaled 38.87 million, which was 11.02% higher than short shares on Sep 14, 2022. In addition to Mr. Logan D. Green as the firm’s Co-Founder, CEO & Director, Mr. John Patrick Zimmer serves as its Co-Founder, Pres & Vice Chairman.

Institutional Ownership:

Through their ownership of 79.49% of LYFT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.90% of LYFT, in contrast to 40.06% held by mutual funds. Shares owned by individuals account for 26.34%. As the largest shareholder in LYFT with 13.47% of the stake, Fidelity Management & Research Co holds 47,469,763 shares worth 47,469,763. A second-largest stockholder of LYFT, The Vanguard Group, Inc., holds 25,865,789 shares, controlling over 7.34% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in LYFT, holding 12,648,179 shares or 3.59% stake. With a 5.48% stake in LYFT, the Fidelity Blue Chip Growth Fund is the largest stakeholder. A total of 19,305,186 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.75% of LYFT stock, is the second-largest Mutual Fund holder. It holds 9,670,095 shares valued at 106.56 million. Vanguard Small Cap Index Fund holds 2.32% of the stake in LYFT, owning 8,170,990 shares worth 90.04 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LYFT since 45 analysts follow the stock currently. There are 22 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 20 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LYFT analysts setting a high price target of $45.00 and a low target of $8.00, the average target price over the next 12 months is $19.57. Based on these targets, LYFT could surge 192.21% to reach the target high and fall by -48.05% to reach the target low. Reaching the average price target will result in a growth of 27.08% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LYFT will report FY 2022 earnings on 02/07/2024. Analysts have provided yearly estimates in a range of $0.53 being high and $0.29 being low. For LYFT, this leads to a yearly average estimate of $0.42. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Lyft Inc. surprised analysts by $0.04 when it reported $0.11 EPS against a consensus estimate of $0.07. The surprise factor in the prior quarter was $0.17. Based on analyst estimates, the high estimate for the next quarter is $0.22 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.15.

Summary of Insider Activity:

Insiders traded LYFT stock several times over the past three months with 2 Buys and 9 Sells. In these transactions, 20,000 shares were bought while 122,737 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 35 over the past year. The total number of shares bought during that period was 1,666,693 while 446,212 shares were sold.

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