Insider Activity Report: Lyft (LYFT)

John Risher, CEO at Lyft (LYFT), recently bought 100,000 shares. The buy increased his stake by 1 percent, and came to a total cost of $1.15 million.

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  • He was joined by a company director who bought 8,826 shares, increasing his stake by  28 percent, and paying just under $100,000. These are the only insider buys at Lyft over the past two years. There have been nearly two dozen sales from directors and executives over the past two years.

    Overall, insiders own 9.6 percent of shares.

    The ride share company is down nearly a third over the past year. Revenues have been flat, and Lyft hasn’t been profitable, although it has beat earnings expectations in the past three quarters.

    Lyft is looking at a number of ways to improve profit margins and the user experience. That includes phasing out surge pricing, and adding in ads in line with competitor Uber (UBER).

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  • Action to take: Shares are well off their 52-week lows set back in May, and look set to continue to move higher. Investors may like shares here, with an eye towards taking profits if shares get back to the high-teens.

    For traders, the October $12.50 calls, last going for about $0.80, could see mid-to-high double-digit gains in the coming two months if shares continue to trend higher.


    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 of the companies mentioned in this article.

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