Lyft Stock Falls as Insiders Sell Shares
Lyft, the ride-hailing company, witnessed a decline in its stock price on Tuesday as two insiders sold shares. Co-founder John Zimmer sold shares worth $3.5 million, while President Kristin Sverchek sold shares worth $85,000, as per securities filings. Despite this, Lyft's stock has had an impressive year, with a 38% increase in 2023, making it the best-performing year since March 2019.
Lyft's Performance and Analyst Ratings
Lyft's shares experienced a 3% decrease to $15.17 on Tuesday. However, it is important to note that only 18% of analysts rate Lyft shares as a Buy, according to FactSet. In comparison, its rival Uber Technologies holds a significant advantage with a 96% Buy rating.
Insight into Analyst Downgrade
Notably, MoffettNathanson analysts, led by Michael Morton, downgraded Lyft to Sell from Neutral at the end of October. They reduced their price target from $10 to $7. They explained that Lyft is at a disadvantage when it comes to raising prices as it is dependent on Uber's strategy, which demonstrates more patience in increasing ride-share prices. This cautious approach has caused Lyft to lose substantial market share.
Positive Earnings Results
In November, Lyft reported a narrower-than-expected loss for the third quarter. Conversely, Uber exceeded quarterly earnings estimates during the same period.