Azzad Asset Management Inc. ADV Boosts Stake in United Rentals, Inc. $URI

Key Points

• Azzad Asset Management raised its stake in United Rentals by 708.4% in Q4, owning 1,932 shares after adding 1,693 shares, with institutional investors holding about 96.26% of the stock.
• United Rentals posted Q4 EPS of $11.09 and revenue of $4.21B, both missing estimates, while the company raised its quarterly dividend to $1.97 ($7.88 annual) and authorized a $5.0 billion share buyback (up to 8.7% of shares).
• Several analysts cut price targets (e.g., RBC to $1,041 and JPMorgan to $970), but the consensus rating remains a Moderate Buy with a consensus price target of $925.59.

Azzad Asset Management Inc. ADV lifted its holdings in United Rentals, Inc. (NYSE:URI - Free Report) by 708.4% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,932 shares of the construction company's stock after buying an additional 1,693 shares during the quarter. Azzad Asset Management Inc. ADV's holdings in United Rentals were worth $1,564,000 as of its most recent SEC filing.

Other institutional investors have also recently modified their holdings of the company. Aventura Private Wealth LLC acquired a new stake in shares of United Rentals in the fourth quarter valued at about $27,000. Salomon & Ludwin LLC lifted its stake in shares of United Rentals by 650.0% in the third quarter. Salomon & Ludwin LLC now owns 30 shares of the construction company's stock valued at $29,000 after purchasing an additional 26 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in shares of United Rentals in the third quarter valued at about $29,000. Cedar Mountain Advisors LLC acquired a new stake in shares of United Rentals in the third quarter valued at about $32,000. Finally, Board of the Pension Protection Fund acquired a new stake in shares of United Rentals in the fourth quarter valued at about $32,000. 96.26% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several analysts recently commented on URI shares. Royal Bank Of Canada reduced their price objective on shares of 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. JPMorgan Chase & Co. dropped their price objective on United Rentals from $1,150.00 to $970.00 and set an "overweight" rating for the company in a research note on Friday, January 30th. KeyCorp set a $950.00 price objective on United Rentals 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 Wednesday, January 21st. Finally, Robert W. Baird set a $970.00 price objective on United Rentals in a research note on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $925.59.

Insider Buying and Selling

In related news, EVP Michael D. Durand sold 2,490 shares of the business's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $791.14, for a total value of $1,969,938.60. Following the completion of the transaction, the executive vice president owned 7,458 shares of the company's stock, valued at approximately $5,900,322.12. The trade was a 25.03% decrease in their position. The sale 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 United Rentals stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $790.89, for a total transaction of $1,184,753.22. Following the sale, the executive vice president owned 6,872 shares of the company's stock, valued at approximately $5,434,996.08. This trade represents a 17.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.53% of the stock is currently owned by corporate insiders.

United Rentals Price Performance

Shares of NYSE URI opened at $731.86 on Wednesday. The stock has a market cap of $46.03 billion, a price-to-earnings ratio of 18.92, a PEG ratio of 1.18 and a beta of 1.68. United Rentals, Inc. has a 52 week low of $533.45 and a 52 week high of $1,021.47. The company's 50-day moving average price is $803.95 and its 200 day moving average price is $854.13. The company has a current ratio of 0.94, a quick ratio of 0.88 and a debt-to-equity ratio of 1.41.

United Rentals (NYSE:URI - Get Free Report) last posted its earnings results on Wednesday, January 28th. The construction company reported $11.09 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $11.86 by ($0.77). United Rentals had a net margin of 15.49% and a return on equity of 30.35%. The company had revenue of $4.21 billion during the quarter, compared to analysts' expectations of $4.24 billion. During the same period in the previous year, the company posted $11.59 EPS. United Rentals's quarterly revenue was up 2.8% compared to the same quarter last year. As a group, research analysts forecast that United Rentals, Inc. will post 44.8 earnings per share for the current fiscal year.

United Rentals Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Investors of record on Wednesday, February 11th were paid a $1.97 dividend. This represents a $7.88 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Wednesday, February 11th. This is an increase from United Rentals's previous quarterly dividend of $1.79. United Rentals's dividend payout ratio is currently 20.37%.

United Rentals announced that its Board of Directors has approved a share repurchase program on Wednesday, January 28th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the construction company to purchase up to 8.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

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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