CEO’s Uber Stake Jumps 73% Despite Trim

By Trey Thoelcke Published Feb 22, 11:15AM EST

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CEO’s Uber Stake Jumps 73% Despite Trim — © uber (CC BY 2.0) by Stock Catalog

You can learn a lot by watching how corporate insiders handle positions in their own companies. People may sell for many reasons (such as buying a house, paying for college, or estate planning). Yet, they generally buy for only one reason: to make more money.

The chief executive officer is often one of the largest and best-informed shareholders in any company. Let’s see whether Uber Technologies Inc. (NYSE: UBER | UBER Price Prediction) CEO Dara Khosrowshahi has been increasing or decreasing his shares over the past year and whether he knows something we don’t.

What You Need to Know About Uber

Uber driver

Uber develops and operates proprietary technology applications in the North America, Latin America, Europe, the Middle East, and elsewhere. It operates through three segments

The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities. It offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. (These are the worst city to drive in in each state.)

The Delivery segment allows users to search for and discover restaurants, grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label delivery-as-a-service for retailers and restaurants, as well as advertising.

The Freight segment manages a transportation and logistics network that connects shippers and carriers in digital marketplace, including carriers upfronts, pricing, and shipment booking. And it provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises.

The company was formerly known as Ubercab and changed its name in February 2011. It was founded in 2009 and is headquartered in San Francisco, California. That is also the home of rival Lyft Inc. (NASDAQ: LYFT), as well as the likes of Airbnb Inc. (NASDAQ: ABNB), Levi Strauss & Co. (NYSE: LEVI), SoFi Technologies Inc. (NASDAQ: SOFI), and Wells Fargo & Co. (NYSE: WFC). Khosrowshahi has been Uber’s CEO since 2017.

The company reported almost $35.9 billion in revenue and has a market capitalization of about $163.0 billion. The stock has gained more than 125% in the past year, outperforming the Nasdaq and the S&P 500 in that time. The stock also is up over 27% year to date.

How the CEO of Uber Is Trading

Buying or selling?

One year ago, Khosrowshahi owned 1.42 million shares, worth almost $37.7 million. On last look, he owned more than 1.32 million shares, which is well less than a 1% stake. Despite that stake being trimmed by less than 105,000 shares, its value jumped by more than 73% to around $65.4 million as the share price increased.

Shares a Year Ago	Shares Today	% Change
1,420,968	1,316,243	−7.37%

CEO Dara Khosrowshahi could have sold shares for a variety of reasons, but he hasn’t been especially aggressive about it of late. In fact, he rarely sells shares. That might suggest that he is confident that the stock’s strong performance will continue, and he has certainly profited by it in the past year. Analysts on average are a little more cautious, despite having a consensus recommendation to buy shares. Their mean price target indicates that they currently see only 8% more upside potential for the stock in the next 12 months.

Other shareholders to watch include Yasir Bin Othman H. Al-Rumayyan, the governor of Saudi Arabia’s Public Investment Fund. The value of that stake is about $25.5 million. Former Uber Chief Financial Officer Nelson Chai has a stake worth $19.3 million, while that of Chief People Officer Nikki Krishnamurthy is valued at around $17.0 million.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.