James Cordwell, an analyst at Atlantic Equities, said lockdown times can be a good day to buy a stock. “With Lyft, we`ve certainly seen sales pressure – the stock has fallen more than 20 percent since mid-July – and the weather will tell if Monday will be a good buying opportunity,” he said in an email. As early as April, Barron said Pinterest could play a leading role in an otherwise challenging market for leading IPOs. This proved to be prescient, since the stock first rose after its IPO; After their recent decline, Pinterest shares could become attractive again. Meanwhile, some companies have also exploded since their IPO, which can push insiders to sell also because they want to pay while the shares are more listed. www.barrons.com/articles/ipo-lockup-pinterest-stock-51571085192 With the end of the lock, Lyft expects nearly 258 million Class A common shares eligible for trading, out of a total of approximately 280 million, or 341 million, on a fully diluted basis, which contains shares that have yet to be converted. Lyft co-founders Logan Green and John Zimmer, as well as Chief Financial Officer Brian Roberts, who together hold about 5.6 percent of the company`s shares, have informed stock analysts that they have no intention of selling at the end of the lock. But that still leaves plenty of shares to flood the market, putting Lyft`s share price under pressure. Some of the big U.S.
companies about to go public, including Uber and Pinterest, are sly in a series of shareholder deals, as concerns over Lyft`s performance intensify after a sparkling stock market debut late last month. www.wsj.com/articles/pinterest-shares-slide-as-lockup-expires-11571161067 Lyft, whose shares initially jumped but have been well below the offer price since, Morgan Stanley last week threatened to take legal action over a report that the investment bank had held so-called short sales for investors who had bought shares before buying shares, as reported in a letter from the Financial Times. There is no guarantee that insiders will sell their positions, but as many of the most popular IPOs of 2019 are behind the market, some shareholders will want to reduce their losses as quickly as possible. Pinterest`s lock-in deal with investors who took shares before the company`s IPO in April expired Monday, allowing investors to sell their shares. Such deals are a common practice in an IPO, and analysts say equities tend to slip as investors worry about a flood of new stocks hitting the market. Pinterest`s stock remains 35% higher than its stock market debut, giving it a market capitalization of about $14.1 billion. And analysts, including Bank of America Merrill Lynch, maintain an upbeat outlook for the company, which is expected to report earnings on October 31. Some of the biggest IPOs in 2019 will see their blocking periods expire in the coming weeks, allowing European companies to sell their shares. Large institutional investors in Pinterest Inc. PINS -0.90% are now free to offload their shares from the online image of consulting firms, sending the stock down nearly 5% this week. Lyft was the first highly anticipated “unicorn” company to go public this year, meaning it will also be the first company to sell its blackout period. Lyft and main rival Uber, which went public in May, both disappointed in the public markets, as their stock prices fell well below their IPO prices.
Other high-level actions are about to end their lock-up agreements. Investors in Ride-hailing App Uber Technologies Inc. will be free to sell shares from November 6. Shares have already fallen 29% after going public in May. Meanwhile, the blackout period for online pet distributor Chewy`s Inc. expires on December 10. The actions are current