No fewer than 10 analysts hiked their price-target hikes after upbeat earnings
Rideshare concern Lyft Inc (NASDAQ:LYFT) is seeing high options activity today, after the company reported strong third-quarter earnings and revenue and issued an upbeat current-quarter gross bookings outlook. The security attracted no fewer than 10 price-target hikes in response, including one from RBC to $24 from $10.
So far today, 134,000 calls and 50,000 puts have been traded, which is seven times the volume typically seen at this point. Most active is the December 20 call, followed by the weekly 11/8 20-strike call, with new positions currently being opened at both contracts.
This denotes a shift in sentiment, as puts were popular over the last couple weeks. The equity’s 10-day put/call volume ratio of 1.21 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all readings from the last 12 months.
Short sellers are already hitting the exits, with short interest down 5.8% in the last two reporting periods. The 47.44 million shares sold short still make up 13% of the stock’s available float, though. In other words, a further unwinding of pessimism could keepthe shares afloat.
LYFT was last seen up 26.8% to trade at $18.26, and earlier surged to its highest level since April. Shares are pacing for their best day since February and fifth-straight daily gain. The equity also sports an 18.7% lead for 2024 and 66% year-over-year gain.
