Brevan Howard Capital Management LP significantly increased its stake in Lyft, Inc. (NASDAQ:LYFT) during the fourth quarter, growing its holdings by an impressive 381.3%. According to the recent Form 13F filing with the Securities and Exchange Commission, the hedge fund now owns 522,315 shares of Lyft, valued at approximately $6.74 million, after acquiring an additional 413,803 shares.
Several other institutional investors are also bolstering their investments in Lyft. For instance, Van ECK Associates raised its stake by 14% to hold 398,880 shares while Pacer Advisors expanded its position by 32.4%, acquiring 9,408,466 shares worth $121.37 million. Meanwhile, Renaissance Technologies made a substantial move by increasing its holdings by 282% to own 8,623,227 shares. Notably, Federated Hermes Inc. ramped up its investments by a staggering 1,957.5%, acquiring 288,827 shares.
The trend of increasing investment in Lyft is indicative of growing confidence among institutional investors in the ride-sharing sector as it recovers from past challenges. Although analysts have mixed reviews on Lyft’s stock, with Bank of America downgrading the stock to “underperform” and setting a price target of $10.50, the general consensus remains a “Hold” rating.
As of the latest trading, Lyft shares saw a slight decline, trading down 2.3% to $12.59. The stock remains within a 52-week range of $8.93 to $19.07. However, Lyft’s solid business model and recent initiatives, including a $500 million share repurchase program aimed at enhancing shareholder value, could signal management’s belief in the stock’s long-term potential.
Additionally, insiders continue to manage their holdings with transactions occurring among directors, which suggests ongoing engagement with the company’s performance and stock trajectory.
In summary, while Lyft faces challenges reflected in stock volatility and mixed analyst ratings, the significant interest from institutional investors may hint at a potential turnaround, especially as the company continues to explore strategies to strengthen its market position.