Uber Technologies (NYSE:UBER) Shares Up 3.7% - What's Next?

Key Points

• Uber shares rose 3.7% to about $71.13 in Monday trading, with volume roughly in line with its average.
• Uber expanded its McDonald’s delivery partnership across 14 markets and launched in-app parking reservations in 15 U.S. cities, adding to its delivery and mobility offerings.
• Uber beat quarterly earnings and revenue estimates, while analysts’ consensus rating was “Moderate Buy” with an average price target of $102.02; management also cited supply constraints limiting mobility growth in some international markets.

Uber Technologies, Inc. (NYSE:UBER - Get Free Report)'s share price traded up 3.7% during trading on Monday. The company traded as high as $71.26 and last traded at $71.1260. Approximately 19,030,848 shares traded hands during trading, a decline of 0% from the average session volume of 19,050,010 shares. The stock had previously closed at $68.59.

Uber Technologies News Summary

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

• Positive Sentiment: Uber and McDonald’s expanded their multi-year partnership across 14 markets. Uber Direct will help fulfill orders placed through McDonald’s app, while new delivery and loyalty features could bring more orders and deepen Uber’s role as a preferred delivery partner. McDonald’s and Uber expand global partnership
• Positive Sentiment: Uber launched in-app parking reservations in 15 U.S. cities after acquiring SpotHero. The feature adds another potential source of bookings, and Uber One members can earn credits on eligible parking reservations. Uber launches parking service
• Positive Sentiment: Citigroup initiated coverage with a Buy rating and a $105 price target, signaling confidence in potential upside. Citigroup rating coverage
• Neutral Sentiment: Uber’s Q3 call highlighted record monthly active users and strong demand in rides and delivery, but management said mobility growth was held back by supply constraints in some international markets. Analyst questions from Uber’s Q3 earnings call
• Negative Sentiment: Despite rising bookings and record cash flow, one income-statement figure is reportedly weighing on investor sentiment. The article’s summary does not specify the figure, leaving a potential concern unresolved. Wall Street sees potential upside for Uber

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Barclays lowered their price objective on shares of Uber Technologies from $106.00 to $100.00 and set an "overweight" rating for the company in a research report on Thursday. The Goldman Sachs Group reissued a "buy" rating and issued a $110.00 price target (down from $115.00) on shares of Uber Technologies in a research note on Thursday. Bank of America reduced their price objective on shares of Uber Technologies from $104.00 to $103.00 and set a "buy" rating for the company in a research report on Tuesday, July 28th. Rothschild & Co Redburn boosted their price objective on Uber Technologies from $112.00 to $115.00 and gave the company a "buy" rating in a report on Tuesday, September 8th. Finally, Daiwa Securities Group lowered their target price on Uber Technologies from $80.00 to $72.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, forty-four have assigned a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $102.02.

Uber Technologies Trading Up 3.7%

The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.23 and a current ratio of 1.23. The firm has a 50 day simple moving average of $70.14 and a two-hundred day simple moving average of $73.03. The firm has a market capitalization of $145.28 billion, a P/E ratio of 42.09, a PEG ratio of 8.94 and a beta of 1.33.

Uber Technologies (NYSE:UBER - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The ride-sharing company reported $0.88 earnings per share for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $14.66 billion. During the same period last year, the firm earned $3.11 earnings per share. The firm's revenue was up 9.6% on a year-over-year basis. Equities research analysts forecast that Uber Technologies, Inc. will post 3.11 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Jill Hazelbaker sold 28,170 shares of the company'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 value of $2,008,802.70. Following the completion of the transaction, the insider directly owned 149,525 shares of the company's stock, valued at $10,662,627.75. This represents a 15.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Dara Khosrowshahi purchased 141,000 shares of the firm's stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average cost of $70.96 per share, with a total value of $10,005,360.00. Following the completion of the transaction, the chief executive officer directly owned 1,367,100 shares of the company's stock, valued at $97,009,416. The trade was a 11.50% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 3.81% of the company's stock.

Hedge Funds Weigh In On Uber Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in UBER. Avion Wealth raised its holdings in shares of Uber Technologies by 17.3% in the 1st quarter. Avion Wealth now owns 984 shares of the ride-sharing company's stock worth $70,000 after purchasing an additional 145 shares during the period. Frazier Financial Advisors LLC lifted its stake in Uber Technologies by 8.5% in the first quarter. Frazier Financial Advisors LLC now owns 1,942 shares of the ride-sharing company's stock valued at $140,000 after purchasing an additional 152 shares during the last quarter. Cornerstone Planning Group LLC grew its holdings in Uber Technologies by 10.6% during the second quarter. Cornerstone Planning Group LLC now owns 1,624 shares of the ride-sharing company's stock valued at $114,000 after purchasing an additional 155 shares during the period. Canopy Partners LLC grew its holdings in Uber Technologies by 1.8% during the third quarter. Canopy Partners LLC now owns 8,605 shares of the ride-sharing company's stock valued at $590,000 after purchasing an additional 156 shares during the period. Finally, Heartland Bank & Trust Co increased its position in Uber Technologies by 3.0% in the first quarter. Heartland Bank & Trust Co now owns 5,991 shares of the ride-sharing company's stock worth $431,000 after buying an additional 177 shares during the last quarter. 80.24% of the stock is owned by hedge funds and other institutional investors.

Uber Technologies Company Profile

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.

Founded in San Francisco in 2009 as UberCab, the company expanded from ride-hailing into delivery and freight.

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