5 Investors Betting Big on Lyft (LYFT) Stock

  • Lyft’s (LYFT) downfall today is attributable to weak guidance for the first quarter.
  • FMR is the largest shareholder of the company, owning 52.84 million shares.
  • LYFT stock is down about 7% year-to-date (YTD).
the Lyft (LYFT) logo shown on a mobile phone.
Source: Tero Vesalainen / Shutterstock.com

Lyft (NASDAQ:LYFT) stock closed lower by more than 36% today after the ride-hailing company reported its fourth-quarter earnings. As evident by the price action, investors didn’t take the results too well.

During Q4, Lyft reported revenue of $1.18 billion, beating the analyst estimate for $1.16 billion. Adjusted earnings per share (EPS) also tallied in at 29 cents versus the estimate for 13 cents. Meanwhile, the GAAP net loss came in at $588.1 million, or a loss of $1.61 per share. According to the company, $201.3 million of the loss was due to stock-based compensation and related tax expenses. A year ago, the company reported a GAAP net loss of $283.2 million.

Both revenue and adjusted EPS beat estimates for the period. However, guidance for Q1 was a different story. Lyft guided for revenue of approximately $975 million, lower than the $1.09 billion expect by analysts. CFO Elaine Paul attributed the disappointing guidance to seasonality, insurance renewal timing and lower fares.

Analysts weren’t very impressed by the results. Wedbush analyst Dan Ives had the following to say:

“In 22 years on the Street as a tech analyst we have listened to 1,000s of conference calls with many highs and lows […] Last night’s Lyft call was a Top 3 worst call we have ever heard.”

Following earnings, several analysts either downgraded their ratings or lowered their price targets for LYFT stock. Cowen reported lowering its price target to $11 while Canaccord lowered its target to $22 per share.

5 Investors Betting Big on LYFT Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 421 13F filers disclosed ownership of LYFT stock, a decline of 33 filers from the prior quarter. In total, these filers own 286.91 million shares, up from 270.06 million shares last quarter. Meanwhile, the institutional put/call ratio sits at 0.68, down from 0.90. That’s equivalent to 24.31 million puts and 35.56 million calls, implying a bullish options stance.

With that in mind, let’s take a look at the largest shareholders of Lyft:

  1. FMR: 52.84 million shares. FMR purchased 1.24 million shares during Q4.
  2. Rakuten Group (OTCMKTS:RKUNY): 31.40 million shares. Rakuten’s position remained unchanged during Q4.
  3. Vanguard: 29.20 million shares. Vanguard purchased 2.90 million shares during Q4.
  4. BlackRock (NYSE:BLK): 17.89 million shares. BlackRock purchased 458,583 shares during Q3.
  5. Fisher Asset Management: 10.98 million shares. Fisher sold 735,426 shares during Q4.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/5-investors-betting-big-on-lyft-lyft-stock/.

©2023 InvestorPlace Media, LLC