Yahoo Finance Lyft Insiders Added US$2.25m Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Lyft, Inc. (NASDAQ:LYFT) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Lyft
The Last 12 Months Of Insider Transactions At Lyft
In the last twelve months, the biggest single purchase by an insider was when CEO & Director John Risher bought US$1.1m worth of shares at a price of US$11.46 per share. So it's clear an insider wanted to buy, at around the current price, which is US$12.71. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$2.2m for 205.73k shares. But they sold 94.21k shares for US$947k. In total, Lyft insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Lyft Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Lyft. Specifically, insiders ditched US$352k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Lyft Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Lyft insiders own 3.2% of the company, currently worth about US$161m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Lyft Tell Us?
Insiders sold Lyft shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So the recent selling doesn't worry us. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 3 warning signs for Lyft that deserve your attention before buying any shares.
Of course Lyft may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
