Wall Street Zen Downgrades Uber Technologies (NYSE:UBER) to Hold

Key Points

• Wall Street Zen has downgraded Uber Technologies from a "buy" rating to a "hold" rating, reflecting a cautious outlook from analysts.
• Despite the downgrade, JPMorgan Chase has raised its target price for Uber from $105 to $110, indicating a mixed sentiment among analysts regarding the stock's potential.
• Uber's recent earnings report showed it beat estimates with an EPS of $0.63 and revenue of $12.65 billion, marking an 18.2% increase year-over-year.

Uber Technologies (NYSE:UBER - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

A number of other analysts also recently weighed in on UBER. JPMorgan Chase & Co. boosted their target price on Uber Technologies from $105.00 to $110.00 and gave the stock an "overweight" rating in a research report on Friday, July 11th. Cantor Fitzgerald restated an "overweight" rating and issued a $106.00 target price (up previously from $96.00) on shares of Uber Technologies in a research report on Wednesday, June 25th. Canaccord Genuity Group restated a "hold" rating and issued a $84.00 target price (down previously from $90.00) on shares of Uber Technologies in a research report on Friday, June 27th. JMP Securities restated a "market perform" rating on shares of Uber Technologies in a research report on Thursday, May 15th. Finally, Citigroup boosted their target price on Uber Technologies from $92.00 to $102.00 and gave the stock a "buy" rating in a research report on Thursday, May 8th. Eleven equities research analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Uber Technologies has an average rating of "Moderate Buy" and a consensus price target of $102.82.

Uber Technologies Stock Performance

Shares of UBER opened at $89.64 on Friday. The company has a market cap of $187.45 billion, a PE ratio of 15.27, a price-to-earnings-growth ratio of 1.06 and a beta of 1.43. The company has a current ratio of 1.11, a quick ratio of 1.02 and a debt-to-equity ratio of 0.41. The stock has a 50-day moving average price of $89.44 and a 200-day moving average price of $81.06. Uber Technologies has a 12-month low of $59.33 and a 12-month high of $97.71.

Uber Technologies (NYSE:UBER - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The ride-sharing company reported $0.63 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.02. The firm had revenue of $12.65 billion during the quarter, compared to the consensus estimate of $12.45 billion. Uber Technologies had a return on equity of 59.96% and a net margin of 26.68%. The company's revenue for the quarter was up 18.2% on a year-over-year basis. During the same quarter last year, the company posted $0.47 EPS. As a group, equities analysts forecast that Uber Technologies will post 2.54 earnings per share for the current fiscal year.

Insider Activity at Uber Technologies

In related news, insider Jill Hazelbaker sold 34,884 shares of the company's stock in a transaction on Monday, May 12th. The stock was sold at an average price of $86.03, for a total value of $3,001,070.52. Following the sale, the insider directly owned 102,135 shares of the company's stock, valued at $8,786,674.05. This represents a 25.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Prashanth Mahendra-Rajah sold 2,750 shares of the company's stock in a transaction on Monday, July 7th. The stock was sold at an average price of $95.00, for a total value of $261,250.00. Following the completion of the sale, the chief financial officer directly owned 21,975 shares in the company, valued at approximately $2,087,625. The trade was a 11.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. 3.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Uber Technologies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UBER. Transce3nd LLC purchased a new stake in Uber Technologies in the fourth quarter worth $27,000. Fourth Dimension Wealth LLC purchased a new stake in Uber Technologies in the fourth quarter worth $27,000. Kozak & Associates Inc. boosted its holdings in Uber Technologies by 155.9% in the first quarter. Kozak & Associates Inc. now owns 366 shares of the ride-sharing company's stock worth $27,000 after acquiring an additional 223 shares in the last quarter. Noble Wealth Management PBC bought a new stake in Uber Technologies in the first quarter worth $27,000. Finally, Vision Financial Markets LLC bought a new stake in Uber Technologies in the first quarter worth $27,000. 80.24% of the stock is owned by hedge funds and other institutional investors.

About Uber Technologies

Uber Technologies, Inc develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services.

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