Lyft stock (ticker: LYFT) has gained 14% year to date, just behind the 16% rise in the
S&P 500 index.
The shares gained sharply after California voters approved a measure to allow gig-economy companies such as Lyft and
(UBER) to continue to classify drivers as contractors rather than employees. Wall Street has also been praising Lyft’s cost-cutting initiatives.
CapitalG sold 1.3 million Lyft shares from Dec. 16 through Dec. 23 for a total of $63 million, or $50.10 per share on average. The Alphabet (GOOGL) unit sold the shares through a so-called Rule 10b5-1 trading plan, which automatically executes transactions when preset conditions, including price and volume, are met. According to a CapitalG filing with the Securities and Exchange Commission, the venture capital unit now owns 11.3 million Lyft shares. The sales are Capital G’s first of Lyft stock.
CapitalG declined to comment on the sale of the Lyft shares. According to S&P Capital IQ, CapitalG remains Lyft’s sixth-largest shareholder.
CapitalG was an early investor in Lyft, buying 12.6 million preferred shares for $500 million, or $39.75 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.
Based on the stock’s appreciation, Barron’s calculates that CapitalG’s sales of Lyft stock booked a $13 million profit.
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.