Lyft Inc [NASDAQ: LYFT] jumped around 0.1 points on Friday, while shares priced at $16.01 at the close of the session, up 0.63%. The company report on February 23, 2024 at 1:08 AM that Lyft Announces Pricing of Offering of $400 million of Convertible Senior Notes.
Lyft, Inc. (“Lyft”) (NASDAQ: LYFT) today announced the pricing of $400 million aggregate principal amount of Convertible Senior Notes due 2029 (the “notes”) in a private offering (the “offering”) only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Lyft also granted the initial purchasers of the notes an option to purchase, for settlement within a 13-day period beginning on, and including, the date Lyft first issues the notes, up to an additional $60 million aggregate principal amount of the notes, solely to cover over-allotments. The sale of the notes to the initial purchasers is expected to settle on February 27, 2024, subject to customary closing conditions, and is expected to result in approximately $389.6 million in net proceeds to Lyft after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by Lyft (assuming no exercise of the initial purchasers’ option to purchase additional notes).
The notes will be senior, unsecured obligations of Lyft. The notes will bear interest at a rate of 0.625% per year. Interest will be payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2024. The notes will mature on March 1, 2029, unless earlier redeemed, repurchased or converted. Lyft may not redeem the notes prior to March 5, 2027. Lyft may redeem for cash all or any portion (subject to certain limitations) of the notes, at its option, on or after March 5, 2027 and prior to the 31st scheduled trading day immediately preceding the maturity date, if the last reported sale price of Lyft’s Class A common stock (“Class A common stock”) has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which Lyft provides notice of redemption, during any 30 consecutive trading day period ending on and including the trading day preceding the date on which Lyft provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes, which means that Lyft is not required to redeem or retire the notes periodically.
Compared to the average trading volume of 18.59M shares, LYFT reached a trading volume of 28928071 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Lyft Inc [LYFT]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LYFT shares is $15.61 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LYFT stock is a recommendation set at 2.74. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
MoffettNathanson have made an estimate for Lyft Inc shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on February 14, 2024. While these analysts kept the previous recommendation, Goldman raised their target price from $12 to $15. The new note on the price target was released on January 11, 2024, representing the official price target for Lyft Inc stock. Previously, the target price had yet another raise to $15, while BMO Capital Markets analysts kept a Market Perform rating on LYFT stock. On December 29, 2023, analysts increased their price target for LYFT shares from 11.70 to 13.
The Average True Range (ATR) for Lyft Inc is set at 1.09, with the Price to Sales ratio for LYFT stock in the period of the last 12 months amounting to 1.45. The Price to Book ratio for the last quarter was 11.82, with the Price to Cash per share for the same quarter was set at 4.22.
How has LYFT stock performed recently?
Lyft Inc [LYFT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -15.87. With this latest performance, LYFT shares gained by 28.49% in over the last four-week period, additionally plugging by 49.35% over the last 6 months – not to mention a rise of 48.93% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LYFT stock in for the last two-week period is set at 58.51, with the RSI for the last a single of trading hit 58.07, and the three-weeks RSI is set at 58.21 for Lyft Inc [LYFT]. The present Moving Average for the last 50 days of trading for this stock 14.02, while it was recorded at 16.54 for the last single week of trading, and 11.43 for the last 200 days.
Lyft Inc [LYFT]: Deeper insight into the fundamentals
Lyft Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.87 and a Current Ratio set at 0.87.
Earnings analysis for Lyft Inc [LYFT]
With the latest financial reports released by the company, Lyft Inc posted 0.07/share EPS, while the average EPS was predicted by analysts to be reported at -0.06/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 216.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LYFT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Lyft Inc go to 11.20%.
Insider trade positions for Lyft Inc [LYFT]
The top three institutional holders of LYFT stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in LYFT stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in LYFT stock with ownership which is approximately 5.8325%.
