Lyft Stock Has Surged. A Big Shareholder Sold Shares. - Barron's

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Lyft stock has rocketed, and Alphabet’s growth fund CapitalG sold $290 million of shares of the ride-hailing company.

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Lyft stock has rocketed, and CapitalG, one of the ride-hailing company’s largest investors, sold a large amount of shares, cutting its stake by more than a third.

Lyft (ticker: LYFT) stock gained 14.2% in 2020, lagging behind the 16.3% rise in the S&P 500 index, a broad measure of the market. So far this year, however, shares have surged 35.5%, compared with the index’s 4.2% rise.

CapitalG, a growth equity fund backed by Alphabet (GOOGL), sold 4.38 million shares from March 5-19 for a total of $289.9 million, a per-share average price of $66.23. CapitalG now owns 6.94 million Lyft shares, according to forms filed by David Lawee, a Lyft director, and a partner of CapitalG. The shares were sold through a so-called Rule 10b5-1 trading plan, which automatically executes transactions when preset conditions, including price and volume, are met.

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CapitalG didn’t respond to a request to make Lawee available for comment. After the sales, CapitalG is Lyft’s eighth-largest shareholder, according to S&P Capital IQ.

This isn’t CapitalG’s first sale of Lyft stock. The fund sold 1.3 million shares from Dec. 16-23 for a total of $63 million, or $50.10 per share on average. Those were also planned sales.

CapitalG was an early investor in Lyft, buying 12.6 million preferred shares for $500 million, or $39.75 each, before the company’s initial public offering in March 2019. The preferred shares were converted to common shares on a one-to-one basis with Lyft’s IPO.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.

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