Insider trades can give investors a more complete view of activity within the world’s publicly listed companies. No one has more information in relation to a company’s prospects than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Lyft Inc (LYFT:US). Lyft is an American mobility company. It is the second-largest ride-sharing company in the US behind Uber. The company is listed on the Nasdaq and currently has a market cap of $4.24 billion.
Our data shows that in August, three insiders at Lyft purchased stock. Those who bought shares were:
CEO David Risher (100,000 shares @ $11.46 per share on August 11)
Board member David Stephenson (8,826 shares @ $11.33 per share on August 11)
Board member Sean Aggarwal (96,900 shares @ $10.34 per share on August 28)
Combined, the three insiders invested around $2.2 million in the company.
It’s the purchase from Mr. Aggarwal that looks the most interesting here.
Mr. Aggarwal started his career in investment banking with Merrill Lynch, Pierce, Fenner & Smith Incorporated. And since March 2016, he has served as the CEO of Soar Capital, where he focuses on investments in early-stage technology companies. So, he has plenty of investment experience.
He also has a lot of company experience having previously served as Chair of the board of directors between January 2019 and April 2023.
Given his background, we think his large stock purchase is notable.
Move Into Advertising
On August 10, Lyft announced that it is moving into the digital advertising space. This move will help the company create a more stable source of revenue.
Going forward, riders will see ads on their phones when they match with a driver and also during their trip. Ads will be relevant and contextual therefore providing maximum value for advertisers. Drivers can also benefit from having an in-car tablet from Lyft Media in their car.
Lyft’s current advertising partners include Bilt Rewards, Audible, and Universal Pictures. The company is also partnering with Rokt's ad serving technology and programmatic solutions to sell ads.
"Lyft is building an advertising network that's attractive to brands,” said Zach Greenberger, Lyft’s Chief Business Officer. “Lyft has a captive audience throughout their entire ride journey - waiting for their car, matching with their driver, and in ride - and brands can now reach riders in relevant and tailored ways across our suite of Lyft Media products.”
In light of this development, we see the insider buying here as a bullish signal.