Views of Wall Street’s Leading Experts on Uber Technologies Inc.

Uber Technologies Inc. (NYSE: UBER) stock fell -1.97% on Tuesday to $29.93 against a previous-day closing price of $30.53. With 14.4 million shares changed hands, the volume of the stock remained lighter than its average volume of 21.94 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $31.20 whereas the lowest price it dropped to was $25.71. The 52-week range on UBER shows that it touched its highest point at $42.56 and its lowest point at $19.90 during that stretch. It currently has a 1-year price target of $45.92. Beta for the stock currently stands at 1.19.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UBER was up-trending over the past week, with a rise of 2.50%, but this was up by 18.02% over a month. Three-month performance surged to 6.82% while six-month performance rose 28.18%. The stock lost -16.72% in the past year, while it has gained 21.03% so far this year. A look at the trailing 12-month EPS for UBER yields -4.51 with Next year EPS estimates of -0.25. For the next quarter, that number is -0.19. This implies an EPS growth rate of 93.20% for this year and 94.90% for next year. EPS is expected to grow by 23.17% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 32.90%.

Float and Shares Shorts:

At present, 1.98 billion UBER shares are outstanding with a float of 1.98 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 61.3 million, which was 3.10% higher than short shares on Sep 14, 2022. In addition to Mr. Dara Khosrowshahi as the firm’s CEO & Director, Mr. Nelson Juseuk Chai serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 74.01% of UBER’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 36.81% of UBER, in contrast to 33.12% held by mutual funds. Shares owned by individuals account for 13.40%. As the largest shareholder in UBER with 5.71% of the stake, Morgan Stanley Investment Managem holds 113,969,296 shares worth 113,969,296. A second-largest stockholder of UBER, The Vanguard Group, Inc., holds 106,715,769 shares, controlling over 5.35% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in UBER, holding 99,712,717 shares or 5.00% stake. With a 2.89% stake in UBER, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 57,614,358 shares are owned by the mutual fund manager. The Morgan Stanley Invt. Fds. – Globa, which owns about 1.42% of UBER stock, is the second-largest Mutual Fund holder. It holds 28,299,318 shares valued at 699.84 million. Vanguard Extended Market Index Fu holds 1.36% of the stake in UBER, owning 27,213,675 shares worth 672.99 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UBER since 48 analysts follow the stock currently. There are 37 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 5 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UBER analysts setting a high price target of $75.00 and a low target of $15.00, the average target price over the next 12 months is $45.04. Based on these targets, UBER could surge 150.58% to reach the target high and fall by -49.88% to reach the target low. Reaching the average price target will result in a growth of 50.48% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UBER will report FY 2022 earnings on 02/07/2024. Analysts have provided yearly estimates in a range of -$4.86 being high and -$5.42 being low. For UBER, this leads to a yearly average estimate of -$5.09. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Uber Technologies Inc. surprised analysts by -$0.44 when it reported -$0.61 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was -$1.07. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is -$0.47. The average estimate for the next quarter is thus -$0.16.

Summary of Insider Activity:

Insiders traded UBER stock several times over the past three months with 37 Buys and 48 Sells. In these transactions, 82,553 shares were bought while 158,187 shares were sold. The number of buy transactions has increased to 207 while that of sell transactions has risen to 280 over the past year. The total number of shares bought during that period was 1,112,948 while 762,759 shares were sold.

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