Lyft (NASDAQ:LYFT) to Repurchase $1.00 billion in Outstanding Shares

Lyft (NASDAQ:LYFT) declared that its Board of Directors has approved a share buyback program on Tuesday, February 10th, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the ride-sharing company to purchase up to 15.1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research firms have commented on LYFT. Evercore ISI set a $21.00 price target on Lyft in a research report on Wednesday. DA Davidson decreased their price target on Lyft from $22.00 to $19.00 and set a “neutral” rating for the company in a research note on Wednesday. KeyCorp restated a “sector weight” rating on shares of Lyft in a research note on Wednesday. Sanford C. Bernstein raised their price objective on Lyft from $22.00 to $23.00 and gave the stock a “market perform” rating in a research note on Monday, November 10th. Finally, The Goldman Sachs Group increased their price objective on shares of Lyft from $21.00 to $26.00 and gave the company a “buy” rating in a report on Friday, November 7th. Ten equities research analysts have rated the stock with a Buy rating, twenty-two have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $20.61.

Lyft Trading Down 17.0%

Shares of LYFT stock opened at $13.99 on Thursday. Lyft has a 1-year low of $9.66 and a 1-year high of $25.54. The company has a market cap of $5.59 billion, a price-to-earnings ratio of 2.05, a PEG ratio of 1.05 and a beta of 1.93. The company has a debt-to-equity ratio of 1.76, a current ratio of 0.72 and a quick ratio of 0.72. The stock has a 50 day simple moving average of $18.88 and a 200-day simple moving average of $19.05.

Lyft News Summary

Here are the key news stories impacting Lyft this week:

• Positive Sentiment: Board authorizes $1.0 billion share buyback (up to ~15% of shares) — a capital return signal that the company sees its stock as undervalued and supports EPS. RTT News: Buyback
• Positive Sentiment: Partnerships and rewards are driving higher‑value riders and activations (25%+ of rides tied to partners; growth in business travel rewards), which can boost take‑rate and monetization if sustained. PYMNTS: Rewards & Partnerships
• Positive Sentiment: Earnings call framed Lyft’s recovery as moving toward “profitable growth,” with management pointing to transformational 2026 initiatives (AV deployments) that could support margins longer term. TipRanks: Earnings Call Signals
• Neutral Sentiment: Lyft is launching teen accounts in select U.S. cities — expands TAM and user acquisition, but monetization/take rates for this cohort are uncertain. WABE: Teen Accounts
• Neutral Sentiment: CEO defended results on media calls (saying consumer demand shows “no softness”), which may reassure some investors but hasn’t yet outweighed the revenue/guide concerns. CNBC: CEO Comments
• Negative Sentiment: Q4 revenue came in below Wall Street expectations and Lyft issued softer near‑term profitability guidance; investors reacted negatively to slower ride growth and an unexpected operating loss measure. Business Insider: Q4 Revenue Miss
• Negative Sentiment: Multiple analysts trimmed price targets and flagged the 2027 profitability plan as “execution‑heavy,” raising concern that slowing ride growth and competitive pressure from Uber could limit upside. Benzinga: Analyst Concerns
• Negative Sentiment: Two fatal shootings of Lyft drivers in Cleveland within ~36 hours raise safety, regulatory and reputational risks that could pressure usage or increase costs (insurance, safety programs). News5Cleveland: Driver Shootings

Insider Activity

In other Lyft news, Director David Lawee sold 6,578 shares of Lyft stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $22.55, for a total value of $148,333.90. Following the sale, the director owned 104,460 shares of the company’s stock, valued at approximately $2,355,573. The trade was a 5.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jill Beggs sold 1,466 shares of the firm’s stock in a transaction that occurred on Friday, November 28th. The shares were sold at an average price of $20.25, for a total value of $29,686.50. Following the completion of the transaction, the director directly owned 34,278 shares of the company’s stock, valued at $694,129.50. The trade was a 4.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 187,443 shares of company stock valued at $4,178,618. Insiders own 3.07% of the company’s stock.

Lyft Company Profile

Lyft, Inc (NASDAQ: LYFT) operates a peer-to-peer ridesharing platform that connects passengers with drivers through a mobile application. Since its founding in 2012, the company has expanded beyond traditional ride-hailing to include bike and electric scooter rentals, while also offering rental cars and public transit options in select markets. Lyft’s platform uses GPS mapping and dynamic pricing algorithms to optimize driver-passenger matches and route efficiency.

Headquartered in San Francisco, California, Lyft primarily serves urban and suburban markets across the United States and Canada.