Zacks Research Downgrades United Rentals (NYSE:URI) to Hold

Key Points

• Zacks Research downgraded United Rentals to “hold” from “strong buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $1,230.88.
• United Rentals reported stronger-than-expected quarterly results, with EPS of $12.76 versus the $11.53 consensus estimate and revenue of $4.41 billion, up 11.8% year over year.
• Shares opened at $1,045.20, near the midpoint of their 52-week range, while institutional investors own a substantial 96.26% of the company; an executive also sold 1,500 shares worth approximately $1.7 million.

United Rentals (NYSE:URI - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

Several other research analysts also recently issued reports on the stock. Weiss Ratings raised shares of United Rentals from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 23rd. UBS Group set a $1,170.00 target price on shares of United Rentals in a report on Thursday, September 10th. Wall Street Zen downgraded shares of United Rentals from a "buy" rating to a "hold" rating in a research note on Saturday, September 12th. Argus reissued a "buy" rating and set a $1,250.00 price target on shares of United Rentals in a report on Tuesday, August 4th. Finally, KeyCorp restated an "overweight" rating and issued a $1,350.00 price target on shares of United Rentals in a research report on Friday, July 24th. Fifteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, United Rentals has a consensus rating of "Moderate Buy" and an average target price of $1,230.88.

United Rentals Price Performance

Shares of NYSE URI opened at $1,045.20 on Monday. The stock has a market cap of $65.05 billion, a P/E ratio of 25.10, a P/E/G ratio of 1.51 and a beta of 1.79. United Rentals has a twelve month low of $701.59 and a twelve month high of $1,179.18. The stock has a 50 day moving average of $1,067.16 and a two-hundred day moving average of $974.62. The company has a current ratio of 0.76, a quick ratio of 0.70 and a debt-to-equity ratio of 1.38.

United Rentals (NYSE:URI - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The construction company reported $12.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.53 by $1.23. United Rentals had a net margin of 15.67% and a return on equity of 31.72%. The business had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.22 billion. During the same period last year, the firm posted $10.47 earnings per share. The company's revenue for the quarter was up 11.8% compared to the same quarter last year. On average, research analysts forecast that United Rentals will post 48.7 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP William Grace sold 1,500 shares of the firm's stock in a transaction on Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total value of $1,699,725.00. Following the completion of the sale, the executive vice president owned 6,062 shares in the company, valued at approximately $6,869,155.30. This trade represents a 19.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.47% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in URI. BlackRock Inc. purchased a new position in shares of United Rentals in the 2nd quarter valued at about $5,816,326,000. Norges Bank acquired a new stake in shares of United Rentals in the fourth quarter valued at about $978,017,000. Bank of America Corp DE acquired a new stake in shares of United Rentals in the second quarter valued at about $944,196,000. The Manufacturers Life Insurance Company purchased a new stake in United Rentals during the second quarter worth about $716,129,000. Finally, Bank of New York Mellon Corp purchased a new stake in United Rentals during the second quarter worth about $412,860,000. 96.26% of the stock is owned by hedge funds and other institutional investors.

About United Rentals

United Rentals, Inc is an equipment rental company serving construction, industrial, commercial, government and residential customers. The company provides access to a broad range of equipment without requiring customers to purchase and maintain their own fleets.

Its rental offerings include aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power-generation and climate-control equipment, pumps, tools, trench-safety products and traffic-control equipment.

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