Is Lyft Inc. (LYFT) Stock Cheap Or Risky?

As of Thursday close, Lyft Inc.’s (NASDAQ:LYFT) stock was up $1.05, moving up 7.08 percent to $15.88. The average number of shares traded per day over the past five days has been 10,447,580 shares. 4 times new highs have been achieved over the past 5 days, with a $0.72 gain in that time frame. In the last twenty days, the average volume was 11,182,440, while in the previous 50 days, it was 13,670,996.

Since last month, LYFT stock retreated -21.43%. Shares of the company fell to $13.73 on 06/16/22, the lowest level in the past month. A 52-week high of $63.07 was reached on 01/05/22 after having rallying from a 52-week low of $13.73. Since the beginning of this year, LYFT’s stock price has dropped by -62.84% or -$26.85, and marked a new high 3 times. However, the stock has declined by -74.82% since its 52-week high.


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Lyft Inc. (LYFT) last reported insider trading activity 28 days ago on May 27. Wilderotter Mary Agnes, the Director of the company, disposed of 553 shares for $17.94 on May 27. It resulted in a $9,919 divestment by the insider. Sverchek Kristin sold 4,000 shares at an average price of $40.00 on Mar 29. The insider now owns 83,350 shares following the transaction. On Mar 29, President of Business Affairs Sverchek Kristin sold 3,938 shares at $40.00 apiece. The transaction was valued at $157,523.

Financial Health

In the three months ended March 30, Lyft Inc.’s quick ratio stood at 1.10, while its current ratio was 1.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.69, and the total debt-to-equity ratio was 0.75. On the profitability front, the trailing twelve-month gross margin is 38.90% percent. In the year ended March 30, operating margins totaled -26.40%. Based on annual data, LYFT earned $1.51 billion in gross profit and brought in $3.21 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -49.40%. Return on equity (ROE) for the past 12 months was -62.50%.

In Lyft Inc.’s quarter-end financial report for March 30, it reported total debt of $787.4 million against cash and short-term investments of $2.02 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. LYFT’s revenue rose 30.45% to $969.93 million during the quarter, while net income inched up to $875.58 million. While analysts expected Lyft Inc. to report -$0.07 quarterly earnings, the actual figure was $0.07 per share. During the quarter, the company generated -$167.08 million in EBITDA. The liabilities of Lyft Inc. were 3.61 billion at the end of its most recent quarter ended March 30, and its total debt was $1.12 billion. The value of shareholders’ equity is $347.98 million.

Technical Picture

This quick technical analysis looks at Lyft Inc.’s (LYFT) price momentum. With a historical volatility rate of 101.40%, the RSI 9-day stood at 47.84% on 23 June.

With respect to its five-day moving average, the current Lyft Inc. price is up by +4.75% percent or $0.72. At present, LYFT shares trade -5.02% below its 20-day simple moving average and -55.58% percent below its 100-day simple moving average. However, the stock is currently trading approximately -52.34% below its SMA50 and -68.61% below its SMA200.

Stochastic coefficient K was 30.76% and Stochastic coefficient D was 25.41%, while ATR was 1.18. Given the Stochastic reading of 49.20% for the 14-day period, the RSI (14) reading has been calculated as 41.73%. As of today, the MACD Oscillator reading stands at 0.29, while the 14-day reading stands at -0.58.

Analyst Ratings

Bernstein launched its rating on Lyft Inc. (NASDAQ: LYFT) to a Mkt perform in a note to investors on May 24, 2022. Lyft Inc. (LYFT) has been rated Overweight by analysts. According to 1 brokerage firm, LYFT is a sell, and 15 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Lyft Inc. stock as buy, with 24 recommending it as overweight.

With a median target price of $35.00, the current consensus forecast for the stock is $20.00 – $65.00. Based on these forecasts, analysts predict Lyft Inc. (LYFT) will achieve an average price target of $39.51.

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