Shares of LYFT Inc (NASDAQ:LYFT) are trading higher Friday afternoon after the company announced updates to its board of directors and corporate governance structure. Here’s what investors need to know.
What To Know: The ridesharing firm revealed that co-founders Logan Green and John Zimmer have stepped down from the board, effective August 14.
Both will convert their multi-vote Class B shares into Class A common stock, a move praised for simplifying the company’s capital structure toward a one-share, one-vote standard for all stockholders. Board member Sean Aggarwal has been appointed to maintain board leadership.
The stock’s upward momentum is also supported by the company’s recent second-quarter financial results, released on August 6. Lyft reported quarterly earnings of 10 cents per share, beating the analyst consensus estimate of four cents.
While revenue of $1.58 billion narrowly missed the Street’s estimate, the company achieved record gross bookings of $4.5 billion, a 12% year-over-year increase. CEO David Risher described it as the company’s “strongest quarter ever.”
For its third-quarter outlook, Lyft expects gross bookings to be between $4.65 billion and $4.8 billion. Analyst commentary following the report noted key growth drivers, with JPMorgan highlighting that Lyft’s markets with autonomous vehicles are growing five times faster than its traditional rideshare business, pointing to a significant area of future expansion.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which are designed to evaluate the strength of a stock, Lyft demonstrates very strong momentum with a high score of 82.49. This suggests the stock has a powerful recent price trend and has been outperforming the market.
The company shows moderate growth prospects, earning a score of 56.68 in that category. In contrast, the stock scores poorly on value with a rating of 35.32, which indicates that it may be considered expensive based on its underlying financial fundamentals and is not seen as a value play.
Price Action: According to data from Benzinga Pro, LYFT shares are trading higher by 6.12% to $15.51 Friday afternoon. The stock has a 52-week high of $19.06 and a 52-week low of $9.66.
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How To Buy LYFT Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Lyft’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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