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

Lyft (NASDAQ:LYFT) declared that its board has approved a stock buyback plan on Tuesday, February 10th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization authorizes the ride-sharing company to purchase up to 15.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several research firms recently weighed in on LYFT. Wedbush cut shares of Lyft from a “neutral” rating to an “underperform” rating and reduced their target price for the company from $20.00 to $16.00 in a research note on Friday, December 19th. Morgan Stanley upped their price target on Lyft from $20.50 to $22.50 and gave the company an “equal weight” rating in a report on Monday, December 8th. DA Davidson set a $22.00 price objective on Lyft in a research report on Thursday, November 6th. Mizuho boosted their price objective on Lyft from $24.00 to $27.00 and gave the company a “neutral” rating in a research report on Wednesday, November 12th. Finally, Evercore upped their target price on Lyft from $15.00 to $30.00 and gave the company an “in-line” rating in a research note on Thursday, November 6th. Ten equities research analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $22.76.

Lyft Stock Performance

Shares of NASDAQ:LYFT opened at $16.85 on Wednesday. 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 business’s fifty day moving average price is $19.04 and its two-hundred day moving average price is $19.08. Lyft has a fifty-two week low of $9.66 and a fifty-two week high of $25.54. The stock has a market capitalization of $6.73 billion, a price-to-earnings ratio of 44.34, a price-to-earnings-growth ratio of 1.03 and a beta of 1.93.

Lyft News Roundup

Here are the key news stories impacting Lyft this week:

• Positive Sentiment: Board authorized a $1 billion share buyback, which supports the stock by returning capital and signaling confidence in Lyft’s balance sheet. Lyft offers $1 billion buyback, but shares are tumbling after mixed results and outlook
• Positive Sentiment: Company reported record Q4 and full‑year 2025 GAAP results and strong cash generation (large net income and cash balance), giving management flexibility for buybacks and AV investments. Lyft Reports Record Q4 and Full-Year 2025 Results
• Neutral Sentiment: Management reiterated plans to expand autonomous-vehicle deployments and launched new product initiatives (e.g., teen accounts), which are strategic positives but will take time to move revenue materially. Lyft debuts teen accounts more than two years after Uber
• Negative Sentiment: Revenue missed Wall Street estimates (Q4 revenue below consensus) and management reported active riders and total rides below expectations — a key reason for the early selloff. Lyft stock falls 15% on disappointing fourth-quarter results, rider numbers
• Negative Sentiment: Company posted an unexpected operating loss for 2025 (and costs of sales rose), highlighting margin pressure even as GAAP net income was boosted by one‑time items — investors are cautious about sustainable profitability. Lyft (LYFT) Reports Q4 Loss, Misses Revenue Estimates
• Negative Sentiment: Management’s 2026 outlook was viewed as cautious and was partly impacted by winter storms; analysts promptly revised forecasts downward, amplifying near‑term downside risk. Lyft’s stock plummets 16% as a disappointing quarter presents a setback for its comeback story

Insiders Place Their Bets

In related news, CAO Stephen W. Hope sold 4,800 shares of the stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $22.30, for a total transaction of $107,040.00. Following the completion of the sale, the chief accounting officer owned 311,909 shares in the company, valued at $6,955,570.70. This trade represents a 1.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Prashant Aggarwal sold 96,900 shares of the business’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $22.30, for a total transaction of $2,160,870.00. Following the completion of the transaction, the director owned 874,369 shares in the company, valued at approximately $19,498,428.70. This trade represents a 9.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 187,443 shares of company stock worth $4,178,618 in the last quarter. 3.07% of the stock is owned by corporate insiders.

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.