Uber Technologies (NYSE:UBER) Shares Down 1.6% - Here's What Happened

Key Points

• Uber shares fell 1.6% to $70.01 in mid-day trading, with volume 35% below the average session volume.
• Growth initiatives include an Amazon Prime delivery benefit, expanded McDonald’s delivery partnerships in 14 markets, and parking reservations launched in 15 U.S. cities.
• Analysts’ consensus rating is Moderate Buy with a $102.08 price target, though concerns include the fourth-quarter outlook, driver-supply constraints, and a senior executive’s departure.

Uber Technologies, Inc. (NYSE:UBER - Get Free Report) shares fell 1.6% during mid-day trading on Tuesday. The company traded as low as $69.19 and last traded at $70.01. Approximately 12,310,660 shares were traded during trading, a decline of 35% from the average session volume of 19,006,303 shares. The stock had previously closed at $71.17.

Key Stories Impacting Uber Technologies

Here are the key news stories impacting Uber Technologies this week:

• Positive Sentiment: Amazon partnership could expand Uber Eats. Amazon Prime members will receive free delivery on eligible restaurant orders, potentially bringing Uber Eats more customers and increasing order volume. Uber Joins with Amazon on Food Delivery
• Positive Sentiment: McDonald’s is expanding its Uber partnership across 14 markets. Uber will be a preferred integrated delivery provider for McDonald’s app orders in key countries, with connected loyalty programs. The multiyear deal could generate more orders and strengthen Uber’s position against delivery rivals. McDonald's Expands Uber Partnership in 14 Markets
• Positive Sentiment: Analysts and investors voiced confidence in Uber’s upside. Citigroup initiated coverage with a Buy rating and a $105 target, while Evercore ISI maintained an Outperform rating and $150 target. Investor Jason Calacanis also disclosed another $1 million purchase, citing his valuation view and Uber’s Waymo relationship. Evercore ISI's Uber Price Target
• Positive Sentiment: Uber launched parking reservations in 15 U.S. cities following its SpotHero acquisition, adding another service to its app and a potential source of customer engagement and revenue. Uber Debuts Parking Reservation Feature
• Negative Sentiment: Operating and outlook risks remain in focus. Recent coverage flagged concerns about Uber’s fourth-quarter outlook and driver-supply constraints in some markets. A senior engineering executive overseeing robotaxi partnerships and core services is also leaving, adding to reports of recent departures. Uber Growth and Q4 Outlook Concerns

Wall Street Analyst Weigh In

UBER has been the topic of several research analyst reports. Loop Capital boosted their target price on shares of Uber Technologies from $91.00 to $94.00 and gave the stock a "buy" rating in a report on Thursday, August 27th. BMO Capital Markets set a $119.00 price target on shares of Uber Technologies in a report on Thursday, September 3rd. Sanford C. Bernstein dropped their price objective on shares of Uber Technologies from $95.00 to $90.00 and set an "outperform" rating for the company in a report on Thursday, November 5th. Roth Capital cut their price objective on Uber Technologies from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Monday, August 10th. Finally, Daiwa Securities Group reduced their target price on Uber Technologies from $80.00 to $72.00 and set a "neutral" rating on the stock in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, forty-four have given a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $102.08.

Uber Technologies Stock Down 1.6%

The company has a market cap of $143.00 billion, a PE ratio of 41.43, a price-to-earnings-growth ratio of 6.68 and a beta of 1.33. The company has a fifty day moving average of $69.98 and a two-hundred day moving average of $72.96. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.84 and a current ratio of 1.23.

Uber Technologies (NYSE:UBER - Get Free Report) last posted its quarterly earnings data on Wednesday, November 4th. The ride-sharing company reported $0.88 EPS for the quarter, topping the consensus estimate of $0.86 by $0.02. Uber Technologies had a net margin of 6.13% and a return on equity of 21.37%. The company had revenue of $14.77 billion during the quarter, compared to analyst estimates of $14.66 billion. During the same period in the previous year, the firm earned $3.11 earnings per share. Uber Technologies's quarterly revenue was up 9.6% compared to the same quarter last year. As a group, analysts anticipate that Uber Technologies, Inc. will post 3.11 earnings per share for the current fiscal year.

Insider Activity at Uber Technologies

In related news, insider Jill Hazelbaker sold 28,170 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $71.31, for a total transaction of $2,008,802.70. Following the completion of the sale, the insider directly owned 149,525 shares of the company's stock, valued at approximately $10,662,627.75. This trade represents a 15.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Dara Khosrowshahi acquired 141,000 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average price of $70.96 per share, with a total value of $10,005,360.00. Following the acquisition, the chief executive officer owned 1,367,100 shares in the company, valued at $97,009,416. This trade represents a 11.50% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 3.81% of the stock is currently owned by insiders.

Institutional Trading of Uber Technologies

A number of large investors have recently made changes to their positions in the stock. Public Sector Pension Investment Board boosted its stake in shares of Uber Technologies by 88.1% in the third quarter. Public Sector Pension Investment Board now owns 680,352 shares of the ride-sharing company's stock valued at $48,533,000 after purchasing an additional 318,667 shares during the period. Global Retirement Partners LLC boosted its position in Uber Technologies by 2.0% in the 3rd quarter. Global Retirement Partners LLC now owns 80,242 shares of the ride-sharing company's stock valued at $5,497,000 after buying an additional 1,555 shares during the period. California First Leasing Corp increased its position in shares of Uber Technologies by 46.3% during the third quarter. California First Leasing Corp now owns 113,103 shares of the ride-sharing company's stock worth $7,749,000 after acquiring an additional 35,773 shares during the period. Pictet Asset Management Holding SA increased its position in shares of Uber Technologies by 2.9% during the third quarter. Pictet Asset Management Holding SA now owns 3,342,977 shares of the ride-sharing company's stock worth $229,027,000 after acquiring an additional 94,508 shares during the period. Finally, Formidable Asset Management LLC raised its stake in shares of Uber Technologies by 5.2% in the third quarter. Formidable Asset Management LLC now owns 24,653 shares of the ride-sharing company's stock valued at $1,779,000 after acquiring an additional 1,222 shares in the last quarter. 80.24% of the stock is owned by hedge funds and other institutional investors.

About Uber Technologies

Uber Technologies, Inc. operates a technology platform that connects people seeking transportation and delivery services with drivers, couriers, merchants and other providers. Its offerings include rides through the Uber app and food and grocery delivery through Uber Eats. The company also provides logistics services through Uber Freight, which connects shippers with carriers and offers tools for managing freight transportation. Uber's platform serves users and businesses across markets in North America, Latin America, Europe, the Middle East, Africa and Asia-Pacific.

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