5 Stocks to Buy According to John Hurley’s Cavalry Asset Management

3. Lyft, Inc. (NASDAQ:LYFT)

Cavalry Asset Management’s Stake Value: $77,198,000

Percentage of Cavalry Asset Management’s 13F Portfolio: 5.89%

Number of Hedge Fund Holders: 47

Lyft, Inc. (NASDAQ:LYFT) is the owner and operator of a ride-hailing company in the U.S., with market share of about 29%. It is available in more than 645 U.S. and 10 Canadian cities. Lyft, Inc. (NASDAQ:LYFT)’s stock has faced problems this year, as the value of its shares has been reduced by more than 75% over the last 12 months and by 66.7% year-to-date.

In an extensive research note on ridesharing companies, MKM Partners analyst Rohit Kulkarni maintained a ‘Neutral’ rating on Lyft, Inc. (NASDAQ:LYFT) while lowering his price objective from $32 to $17 on July 27. The analyst highlighted that the group has underperformed because investors are worried about demand expectations with rising inflation, supply dynamics with high oil prices, and profitability prospects beyond recovery tailwinds.

Cavalry Asset Management loaded up on Lyft, Inc. (NASDAQ:LYFT) in the first quarter, increasing its holding in the company by 52%. The hedge fund owns 2.01 million shares of Lyft, Inc. (NASDAQ:LYFT), worth $77.20 million. With combined positions worth $994 million, 47 hedge funds were long Lyft, Inc. (NASDAQ:LYFT) at the end of the first quarter of 2022. This shows positive sentiment from the previous quarter, when 43 hedge funds had $762 million in Lyft, Inc. (NASDAQ:LYFT) positions. Alkeon Capital Management is the biggest shareholder of Lyft, Inc. (NASDAQ:LYFT) as of March 31, with a massive $218 million stake.

In its Q1 2022 investor letter, Rowan Street Capital LLC mentioned Lyft, Inc. (NASDAQ:LYFT). Here is what the fund said:

“Lyft, Inc. (NASDAQ:LYFT): We sold Lyft, Inc. (NASDAQ:LYFT) in Q1 ’22 to fund the acquisitions of our 3 new positions as we’ve outlined. We had owned Lyft for a little less than 3 years and realized approximately 50% gain on the stock. The new companies we bought with the proceeds from the sale are significantly better businesses, in our view.”