David Risher, CEO of Lyft (LYFT), recently bought 13,790 shares. The buy increased his stake by less than 1%, and came to a total cost of $250,272.
This is Risher’s second buy of the year, following a 51,815 share pickup in August for just over $501,000. Otherwise, company insiders, including both directors and executives, have been slight sellers of shares over the past two years. Those sales are largely direct sales, rather than the exercise of stock options.
Overall, Lyft insiders own 9% of shares.
The ride share platform is up 70% over the past year. The company has been a relatively strong performer, with revenues soaring 32%.
While Lyft has yet to turn a profit, the rising revenue is putting the company on the cusp of turning a profit, with shares trading at an estimated 22 times forward earnings.
Action to take: Since hitting a 52-week low in August, shares have been in a strong uptrend. Improving earnings potential should allow shares to continue trending higher, making shares ideal for momentum investors now.
For traders, the momentum higher in shares is likely to continue until the stock retests its old 52-week high. The January 2025 $20 calls, last trading for about $0.80, could see mid-to-high double-digit returns on a continued uptrend for shares. Traders may want to take profits early if the option moves in-the-money.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
