LYFT Inc (LYFT)

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Analyst Upgrades Lyft (LYFT) Stock After Layoffs
By: Schaeffer's Investment Research | January 24, 2023

• Keybanc upgraded LYFT to "overweight" from "sector weight"

• LYFT is up over 40% since the start of the year

Lyft Inc (NASDAQ:LYFT) stock is up 1.4% to trade at $15.62 at last glance, after Keybanc upgraded the shares to "overweight" from "sector weight." The firm cited stabilizing demand and company layoffs, and added it sees over 50% in potential upside for the ridesharing name.

LYFT is already up 43.1% since the start of 2023, and on track for its third-straight daily gain. Long-term pressure at the stock's 200-day moving average appears to be keeping a cap on today's gains, however. Plus, the equity's 14-day relative strength index (RSI) of 91.2 sits firmly in "overbought" territory, meaning Lyft stock is due for a short-term drop.

Drilling down to today's options activity, 7,012 puts have crossed the tape so far, which is double what's typically seen at this point. Most popular is the weekly 1/27 15-strike put, where new positions are being opened.

Options bulls have been blasting Lyft stock lately, though. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 4.43 ranks higher than all other readings from the past year.

It's also worth noting that short interest represents 14.3% of the stock's available float. It would take nearly three days to buy back these bearish bets, at LYFT's average pace of trading.

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