United Rentals (NYSE:URI) Announces Quarterly Earnings Results

United Rentals (NYSE:URI) issued its earnings results on Wednesday. The construction company reported $9.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $11.47 by ($1.76), FiscalAI reports. The firm had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $4.20 billion. United Rentals had a return on equity of 30.35% and a net margin of 15.49%.

United Rentals Trading Down 0.3%

Shares of NYSE:URI traded down $2.81 during trading on Wednesday, reaching $803.41. 572,907 shares of the company traded hands, compared to its average volume of 649,978. The firm has a market capitalization of $50.53 billion, a price-to-earnings ratio of 20.77, a P/E/G ratio of 1.31 and a beta of 1.68. United Rentals has a 52-week low of $588.35 and a 52-week high of $1,021.47. The company has a current ratio of 0.94, a quick ratio of 0.88 and a debt-to-equity ratio of 1.41. The business’s fifty day moving average is $792.33 and its 200-day moving average is $841.99.

United Rentals Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, February 25th. Stockholders of record on Wednesday, February 11th were paid a dividend of $1.97 per share. This represents a $7.88 dividend on an annualized basis and a dividend yield of 1.0%. This is a boost from United Rentals’s previous quarterly dividend of $1.79. The ex-dividend date of this dividend was Wednesday, February 11th. United Rentals’s payout ratio is currently 20.37%.

Insider Buying and Selling

In other news, EVP Michael D. Durand sold 2,490 shares of the stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $791.14, for a total transaction of $1,969,938.60. Following the completion of the sale, the executive vice president owned 7,458 shares of the company’s stock, valued at approximately $5,900,322.12. This represents a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP William E. Grace sold 1,498 shares of the company’s stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total value of $1,184,753.22. Following the transaction, the executive vice president owned 6,872 shares of the company’s stock, valued at approximately $5,434,996.08. This represents a 17.90% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.47% of the company’s stock.

Hedge Funds Weigh In On United Rentals

Hedge funds and other institutional investors have recently made changes to their positions in the business. Sunbelt Securities Inc. raised its holdings in shares of United Rentals by 2,300.0% during the third quarter. Sunbelt Securities Inc. now owns 48 shares of the construction company’s stock valued at $46,000 after acquiring an additional 46 shares in the last quarter. Mcguire Capital Advisors Inc. bought a new position in shares of United Rentals during the fourth quarter valued at approximately $49,000. Van ECK Associates Corp bought a new position in shares of United Rentals during the fourth quarter valued at approximately $53,000. Strive Financial Group LLC bought a new position in shares of United Rentals during the fourth quarter valued at approximately $54,000. Finally, Transamerica Financial Advisors LLC raised its holdings in shares of United Rentals by 400.0% during the fourth quarter. Transamerica Financial Advisors LLC now owns 70 shares of the construction company’s stock valued at $57,000 after acquiring an additional 56 shares in the last quarter. Institutional investors own 96.26% of the company’s stock.

United Rentals announced that its board has authorized a share repurchase plan on Wednesday, January 28th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the construction company to reacquire up to 8.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

Several analysts have issued reports on URI shares. Truist Financial set a $972.00 target price on United Rentals in a research note on Friday, January 30th. Citigroup cut their target price on United Rentals from $1,090.00 to $950.00 and set a “buy” rating for the company in a research note on Monday, February 2nd. Royal Bank Of Canada cut their target price on United Rentals from $1,123.00 to $1,041.00 and set an “outperform” rating for the company in a research note on Friday, January 30th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of United Rentals in a research note on Monday. Finally, Sanford C. Bernstein set a $903.00 target price on United Rentals and gave the stock an “outperform” rating in a research note on Thursday, April 9th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $914.88.

United Rentals Company Profile

United Rentals, Inc (NYSE: URI) is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.

The company’s product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.