Applied Finance Capital Management LLC Sells 3,904 Shares of United Rentals, Inc. $URI

Key Points

• Applied Finance Capital Management reduced its United Rentals stake by 15.8% in the fourth quarter, selling 3,904 shares and leaving it with 20,745 shares valued at about $16.8 million.
• United Rentals reported mixed quarterly results, with EPS of $9.71 and revenue of $3.99 billion both missing analyst estimates, though revenue still rose 7.2% from a year earlier.
• The company authorized a $5 billion share buyback and declared a quarterly dividend of $1.97 per share, while analysts currently rate the stock a consensus Moderate Buy with an average target price of $996.94.

Applied Finance Capital Management LLC decreased its position in shares of United Rentals, Inc. (NYSE:URI - Free Report) by 15.8% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 20,745 shares of the construction company's stock after selling 3,904 shares during the quarter. Applied Finance Capital Management LLC's holdings in United Rentals were worth $16,789,000 at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in URI. Woodline Partners LP raised its holdings in shares of United Rentals by 40.0% during the 1st quarter. Woodline Partners LP now owns 5,518 shares of the construction company's stock valued at $3,458,000 after buying an additional 1,577 shares in the last quarter. Sei Investments Co. grew its position in shares of United Rentals by 24.7% in the 2nd quarter. Sei Investments Co. now owns 27,136 shares of the construction company's stock worth $20,444,000 after buying an additional 5,375 shares during the last quarter. Treasurer of the State of North Carolina boosted its position in shares of United Rentals by 43.6% during the second quarter. Treasurer of the State of North Carolina now owns 56,057 shares of the construction company's stock valued at $42,233,000 after purchasing an additional 17,030 shares in the last quarter. HUB Investment Partners LLC boosted its position in shares of United Rentals by 11.3% during the second quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company's stock valued at $1,661,000 after purchasing an additional 223 shares in the last quarter. Finally, Diversify Advisory Services LLC boosted its position in shares of United Rentals by 338.7% during the second quarter. Diversify Advisory Services LLC now owns 1,654 shares of the construction company's stock valued at $1,246,000 after purchasing an additional 1,277 shares in the last quarter. Institutional investors own 96.26% of the company's stock.

United Rentals Stock Down 1.2%

Shares of NYSE URI opened at $961.22 on Friday. The company has a current ratio of 0.80, a quick ratio of 0.74 and a debt-to-equity ratio of 1.37. The stock has a market capitalization of $60.22 billion, a PE ratio of 24.52, a price-to-earnings-growth ratio of 1.54 and a beta of 1.83. United Rentals, Inc. has a 12-month low of $681.98 and a 12-month high of $1,021.47. The stock's fifty day simple moving average is $818.01 and its two-hundred day simple moving average is $839.18.

United Rentals (NYSE:URI - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The construction company reported $9.71 earnings per share for the quarter, missing analysts' consensus estimates of $11.47 by ($1.76). The business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $4.20 billion. United Rentals had a return on equity of 30.56% and a net margin of 15.32%.The firm's revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period in the previous year, the business earned $8.86 EPS. As a group, analysts expect that United Rentals, Inc. will post 47.07 EPS for the current fiscal year.

United Rentals declared that its Board of Directors has authorized a stock buyback plan on Wednesday, January 28th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the construction company to reacquire up to 8.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

United Rentals Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th will be paid a $1.97 dividend. The ex-dividend date is Wednesday, May 13th. This represents a $7.88 dividend on an annualized basis and a yield of 0.8%. United Rentals's dividend payout ratio (DPR) is 20.10%.

Insider Transactions at United Rentals

In other United Rentals news, SVP Joli L. Gross sold 306 shares of United Rentals stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $954.99, for a total transaction of $292,226.94. Following the completion of the transaction, the senior vice president owned 5,738 shares in the company, valued at approximately $5,479,732.62. This trade represents a 5.06% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Craig Adam Pintoff sold 2,466 shares of United Rentals stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $963.00, for a total value of $2,374,758.00. Following the transaction, the executive vice president owned 14,774 shares of the company's stock, valued at $14,227,362. The trade was a 14.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 26,088 shares of company stock worth $25,628,877. Insiders own 0.47% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have commented on URI shares. KeyCorp boosted their target price on United Rentals from $950.00 to $1,150.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Weiss Ratings cut United Rentals from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, May 4th. Barclays upped their price target on United Rentals from $600.00 to $715.00 and gave the stock an "underweight" rating in a research report on Friday, April 24th. Morgan Stanley restated an "overweight" rating and issued a $1,030.00 price target on shares of United Rentals in a research report on Friday, April 24th. Finally, Citigroup upped their price objective on United Rentals from $950.00 to $1,130.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Thirteen research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $996.94.

United Rentals 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.

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