PAR Capital Doubles Down on Lyft: Is it Too Late to Buy?

PAR Capital Management disclosed a significant increase in its position in Lyft (NASDAQ:LYFT), adding 1,350,000 shares and boosting the stake by $41.61 million as of Sept. 30, 2025.

What happened

In its quarterly report filed with the Securities and Exchange Commission on Nov. 14, 2025 (SEC filing), PAR Capital Management reported acquiring an additional 1,350,000 shares of Lyft during the third quarter.

The move brought the fund’s total Lyft holdings to 3,255,000 shares, with a market value of $71.63 million as of Sept. 30, 2025.

Lyft represented 2.1% of the fund’s total 13F U.S. equity assets.

What else to know

The buy increased Lyft’s weight in the portfolio to 2.1% of 13F AUM.

PAR's top five holdings after the filing:

1. Synchrony Financial (NYSE:SYF): $532.88 million (15.7% of AUM)
2. United Airlines Holdings (NASDAQ:UAL): $479.49 million (14.2% of AUM)
3. Expedia Group (NASDAQ:EXPE): $470.25 million (13.9% of AUM)
4. WEX, Inc (NYSE:WEX): $291.67 million (8.6% of AUM)
5. Delta Air Lines(NYSE:DAL): $202.84 million (6% of AUM)

As of Nov. 25, 2025, Lyft shares were priced at $20.68, up 16% over the past year, outperforming the S&P 500 by 2 percentage points.

Company Overview

Company Snapshot

Lyft:

• Offers a multimodal transportation platform including ridesharing, car rentals, bike and scooter sharing, and integration of public transit data.
• Generates revenue by connecting drivers with riders, providing vehicle rentals, and offering subscription and enterprise transportation solutions.
• Targets individual consumers, commuters, universities, and organizations seeking on-demand or scheduled mobility services in the United States and Canada.

Lyft, Inc. operates one of North America's leading on-demand transportation networks, facilitating millions of rides through its digital platform.

The company's strategy centers on expanding mobility options and integrating multiple modes of transport to serve diverse urban and suburban markets.

With a scalable technology infrastructure and a focus on user experience, Lyft competes by offering flexible, convenient, and comprehensive transportation solutions.

Foolish take

PAR Capital's continued purchases of Lyft are certainly noteworthy as the stock has become the fund's 11th-largest holding.

Not only did PAR increase the number of Lyft shares it held by 70% in the last quarter, but it also added to its stock position even after the stock price doubled from its 52-week low.

I would consider this a very bullish sentiment from an institutional investor, as they are typically more likely to take a quick profit than double down on their winners. This suggests that they believe the best is yet to come -- and I tend to agree.

Lyft has become the Pepsi (NASDAQ:PEP) to Uber's (NYSE:UBER) Coca-Cola (NYSE:KO) in North American mobility, and has grown sales by 15% annually over the last decade.

With 29 million active riders taking 250 million rides in the last quarter alone, Lyft has firmly established itself as the No. 2 mobility provider, trailing Uber but operating in what appears to be a duopoly of sorts so far.

Best yet, it generated over $1 billion in free cash flow (FCF), as the company's network continues to scale.

That said, concerns persist about the impact of autonomous cars on the mobility industry and whether Lyft will still have a role to play.

I think these fears are somewhat overblown -- as does one of my Foolish peers -- and I believe Lyft appears to be a growth stock trading at a value stock price, at just 8 times FCF.

Trading at this discounted valuation, but with massive upside as it tries to transform an industry alongside Uber, PAR Capital's consistent buying makes a lot of sense in my opinion.

Glossary

13F: A quarterly report filed by institutional investment managers disclosing their U.S. equity holdings.
AUM (Assets Under Management): The total market value of assets that an investment firm manages on behalf of clients.
Position: The amount of a particular security or asset held in a portfolio.
Stake: The ownership interest or share an investor holds in a company.
Top five holdings: The five largest investments in a portfolio, ranked by market value.
Trailing twelve months (TTM): The 12 months ending with the most recent quarterly report.
Forward P/E ratio: A stock valuation measure comparing the current price to forecasted earnings per share over the next year.
Market value: The total dollar value of a position, calculated as shares held multiplied by the current share price.
Multimodal transportation platform: A service offering multiple types of transportation options, such as ridesharing, bikes, and scooters, through one platform.
Outperforming: Achieving a higher return or growth rate compared to a benchmark or index.

Synchrony Financial is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has positions in Coca-Cola, Lyft, and Uber Technologies. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines, Lyft, and Wex. The Motley Fool has a disclosure policy.