UBER Stock Edges Down as 19.5% Delivery Hero Stake Makes It Largest Shareholder

• Uber becomes the top shareholder in Delivery Hero.
• Uber acquired approximately 4.5% of Delivery Hero’s issued capital from Prosus.
• The average 12-month price target for Uber stock is $104.68, indicating a potential 39% return, according to Koyfin data.

Uber Technologies (UBER) stock was muted, down around 0.1% on Monday after the company expanded its footprint in the European food delivery sector by acquiring an additional stake in Germany’s Delivery Hero SE, bringing its total ownership to nearly a fifth of the company.

Delivery Hero announced Monday that Uber now controls 19.5% of its issued capital, alongside an additional 5.6% held in options. According to Reuters, the latest stake buy-in placed Uber as the top shareholder, overtaking Prosus’s previous 16.8% holding. 

The disclosure follows an announcement on April 17 that Dutch technology investor Prosus had agreed to sell a 4.5% stake in Delivery Hero to Uber for approximately 270 million euros ($318.06 million). 

Prosus Stake Dilution

The share offloading by Prosus was driven by regulatory obligations. The company trimmed its position to meet conditions mandated by the European Commission regarding its acquisition of Just Eat Takeaway, a move aimed at alleviating competition concerns within the food delivery market. Prosus has indicated a long-term goal of reducing its stake in Delivery Hero to single digits.

The initial deal positioned Uber as the fourth-largest shareholder in Delivery Hero, with a stake valued at more than $600 million, based on Reuters calculations and LSEG data at the time.

In public statements, Delivery Hero corporate leaders welcomed the expanded relationship, framing the transactions as a strong vote of confidence. Delivery Hero CEO Niklas Oestberg described Uber's increased position as a "meaningful endorsement of our platform, our strategy, and our ongoing work to deliver long-term value for all shareholders."

UBER Analyst View 

45 out of 53 analysts rate the stock ‘buy’ or higher, seven rate ‘hold’ and one ‘sell’.  The average 12-month price target for Uber stock is $104.68, indicating a potential 39% return, according to Koyfin data. 

UBER Retail View 

Retail sentiment on Uber was ‘neutral’ with ‘normal’ message volumes. 

One user highlighted that he would need to take both bullish and bearish positions while trading Uber stock. 

The stock lost 18% over the last 12 months.

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