BlackRock Inc. Buys New Stake in United Rentals, Inc. $URI

Key Points

• BlackRock acquired 5.13 million United Rentals shares worth approximately $5.82 billion, giving it an 8.25% stake. Institutional investors collectively own 96.26% of the company.
• United Rentals reported stronger-than-expected quarterly results, with earnings per share of $12.76 and revenue of $4.41 billion, up 11.8% year over year.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $1,246.19. The company also declared a quarterly dividend of $1.97 per share, yielding about 0.7% annually.

BlackRock Inc. purchased a new stake in United Rentals, Inc. (NYSE:URI - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 5,134,060 shares of the construction company's stock, valued at approximately $5,816,326,000. BlackRock Inc. owned approximately 8.25% of United Rentals at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of URI. Woodline Partners LP boosted its holdings in shares of United Rentals by 40.0% in 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. raised its stake in shares of United Rentals by 24.7% during the second quarter. Sei Investments Co. now owns 27,136 shares of the construction company's stock worth $20,444,000 after purchasing an additional 5,375 shares during the last quarter. Treasurer of the State of North Carolina lifted its position in United Rentals by 43.6% in 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 during the period. HUB Investment Partners LLC lifted its holdings in United Rentals by 11.3% in the second quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company's stock valued at $1,661,000 after acquiring an additional 223 shares during the period. Finally, Diversify Advisory Services LLC boosted its stake in shares of United Rentals by 338.7% during the 2nd quarter. Diversify Advisory Services LLC now owns 1,654 shares of the construction company's stock worth $1,246,000 after acquiring an additional 1,277 shares in the last quarter. 96.26% of the stock is owned by hedge funds and other institutional investors.

United Rentals Stock Performance

NYSE:URI opened at $1,166.11 on Tuesday. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.76 and a quick ratio of 0.70. United Rentals, Inc. has a 1-year low of $701.59 and a 1-year high of $1,179.18. The firm has a 50-day moving average of $1,096.63 and a two-hundred day moving average of $942.44. The stock has a market cap of $72.58 billion, a P/E ratio of 28.00, a PEG ratio of 1.49 and a beta of 1.80.

United Rentals (NYSE:URI - Get Free Report) last announced its quarterly earnings data on Tuesday, July 21st. The construction company reported $12.76 earnings per share for the quarter, beating the consensus estimate of $11.53 by $1.23. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The firm had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.22 billion. During the same period in the previous year, the company earned $10.47 earnings per share. United Rentals's quarterly revenue was up 11.8% on a year-over-year basis. On average, research analysts expect that United Rentals, Inc. will post 48.55 earnings per share for the current fiscal year.

United Rentals Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th will be issued a $1.97 dividend. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $7.88 annualized dividend and a dividend yield of 0.7%. United Rentals's payout ratio is 18.92%.

Wall Street Analyst Weigh In

URI has been the topic of a number of analyst reports. Weiss Ratings raised United Rentals from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 23rd. Argus reiterated a "buy" rating and issued a $1,250.00 target price on shares of United Rentals in a research note on Tuesday, August 4th. Evercore reiterated an "outperform" rating and set a $1,101.00 target price on shares of United Rentals in a research report on Monday, May 11th. KeyCorp reissued an "overweight" rating and issued a $1,350.00 price target on shares of United Rentals in a research note on Friday, July 24th. Finally, Barclays upped their price objective on United Rentals from $715.00 to $950.00 and gave the stock an "underweight" rating in a report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, United Rentals has an average rating of "Moderate Buy" and an average price target of $1,246.19.

Insider Buying and Selling at United Rentals

In related news, EVP William E. Grace sold 1,500 shares of the stock in a transaction dated Friday, July 24th. The shares were sold at an average price of $1,133.15, for a total transaction of $1,699,725.00. Following the sale, the executive vice president owned 6,062 shares in the company, valued at $6,869,155.30. This represents a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.47% of the stock is currently owned by corporate insiders.

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.

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