Does Uber Technologies Inc. (UBER) offer a good opportunity for investors?

Uber Technologies Inc. (NYSE: UBER) stock fell -1.81% on Wednesday to $37.96 against a previous-day closing price of $38.66. With 22.0 million shares changed hands, the volume of the stock remained lighter than its average volume of 23.45 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $38.66 whereas the lowest price it dropped to was $37.77. The 52-week range on UBER shows that it touched its highest point at $40.50 and its lowest point at $19.90 during that stretch. It currently has a 1-year price target of $48.93. Beta for the stock currently stands at 1.15.

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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 0.32%, but this was up by 28.29% over a month. Three-month performance surged to 10.12% while six-month performance rose 34.37%. The stock gained 59.63% in the past year, while it has gained 53.50% so far this year. A look at the trailing 12-month EPS for UBER yields -1.72 with Next year EPS estimates of 0.93. 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 -10.40%.

Float and Shares Shorts:

At present, 2.01 billion UBER shares are outstanding with a float of 1.99 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 52.88 million, which was 2.61% higher than short shares on Mar 30, 2023. 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 75.37% of UBER’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.10% of UBER, in contrast to 32.80% held by mutual funds. Shares owned by individuals account for 13.32%. As the largest shareholder in UBER with 6.63% of the stake, Morgan Stanley Investment Managem holds 133,295,699 shares worth 133,295,699. A second-largest stockholder of UBER, Fidelity Management & Research Co, holds 123,879,137 shares, controlling over 6.16% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in UBER, holding 116,291,837 shares or 5.79% stake. With a 2.95% stake in UBER, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 59,358,334 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.38% of UBER stock, is the second-largest Mutual Fund holder. It holds 27,748,940 shares valued at 861.6 million. Morgan Stanley Invt. Fds. – Globa holds 1.38% of the stake in UBER, owning 27,746,471 shares worth 861.53 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, UBER reported revenue of $8.07B and operating income of -$713.00M. The EBITDA in the recently reported quarter was -$448.00M and diluted EPS was -$1.33.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UBER since 0 analysts follow the stock currently. 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 $32.50, the average target price over the next 12 months is $49.63. Based on these targets, UBER could surge 97.58% to reach the target high and fall by -14.38% to reach the target low. Reaching the average price target will result in a growth of 30.74% 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.

Summary of Insider Activity:

Insiders traded UBER stock several times over the past three months with 48 Buys and 52 Sells. In these transactions, 377,329 shares were bought while 205,082 shares were sold. The number of buy transactions has increased to 218 while that of sell transactions has risen to 280 over the past year. The total number of shares bought during that period was 1,000,060 while 672,314 shares were sold.

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