Buffalo Business & Estate Services Ltd. Buys New Stake in United Rentals, Inc. $URI

Key Points

• Buffalo Business & Estate Services bought a new stake of 5,726 shares in United Rentals valued at about $4.64 million (making it ~0.7% of that firm's holdings and its 29th largest holding), while institutional investors now own roughly 96.26% of URI and several large funds materially increased their positions.
• United Rentals missed quarterly expectations, reporting $11.09 EPS vs. $11.86 expected and $4.21 billion in revenue (vs. $4.24B consensus), with a market cap of about $46.0 billion and a PE of ~18.9.
• The company boosted shareholder returns by raising the quarterly dividend to $1.97 (annualized $7.88, ~1.1% yield) and authorizing a $5.0 billion share buyback (up to ~8.7% of shares); analysts’ consensus rating is "Moderate Buy" with an average target near $925.59.

Buffalo Business & Estate Services Ltd. bought a new position in United Rentals, Inc. (NYSE:URI - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 5,726 shares of the construction company's stock, valued at approximately $4,635,000. United Rentals makes up about 0.7% of Buffalo Business & Estate Services Ltd.'s holdings, making the stock its 29th largest holding.

Several other institutional investors and hedge funds also recently made changes to their positions in URI. Capital International Investors lifted its holdings in United Rentals by 22.8% during the 3rd quarter. Capital International Investors now owns 3,402,524 shares of the construction company's stock valued at $3,247,762,000 after purchasing an additional 631,484 shares during the last quarter. TD Asset Management Inc grew its stake in United Rentals by 66.5% during the third quarter. TD Asset Management Inc now owns 484,450 shares of the construction company's stock worth $462,485,000 after buying an additional 193,416 shares during the last quarter. Lazard Asset Management LLC increased its holdings in shares of United Rentals by 34,208.2% during the second quarter. Lazard Asset Management LLC now owns 189,038 shares of the construction company's stock worth $142,421,000 after buying an additional 188,487 shares in the last quarter. Capital World Investors raised its stake in shares of United Rentals by 6.7% in the third quarter. Capital World Investors now owns 2,678,614 shares of the construction company's stock valued at $2,557,158,000 after acquiring an additional 168,685 shares during the last quarter. Finally, Public Sector Pension Investment Board boosted its holdings in shares of United Rentals by 3,094.3% in the 3rd quarter. Public Sector Pension Investment Board now owns 155,273 shares of the construction company's stock worth $148,233,000 after acquiring an additional 150,412 shares in the last quarter. Institutional investors and hedge funds own 96.26% of the company's stock.

United Rentals Stock Down 0.0%

Shares of NYSE URI opened at $732.08 on Monday. United Rentals, Inc. has a 1 year low of $525.91 and a 1 year high of $1,021.47. The firm's 50-day moving average is $811.00 and its 200-day moving average is $857.07. 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 firm has a market capitalization of $46.04 billion, a PE ratio of 18.93, a price-to-earnings-growth ratio of 1.18 and a beta of 1.68.

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

United Rentals Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Shareholders of record on Wednesday, February 11th were given a dividend of $1.97 per share. This represents a $7.88 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Wednesday, February 11th. This is a positive change from United Rentals's previous quarterly dividend of $1.79. United Rentals's dividend payout ratio is presently 20.37%.

United Rentals declared that its board has initiated a stock buyback program on Wednesday, January 28th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the construction company to purchase up to 8.7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

Several equities analysts have issued reports on URI shares. Robert W. Baird set a $970.00 price objective on United Rentals in a research report on Friday, January 30th. Truist Financial set a $972.00 target price on United Rentals in a report on Friday, January 30th. JPMorgan Chase & Co. lowered their target price 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. Royal Bank Of Canada dropped their target price 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. Finally, Wells Fargo & Company increased their price objective on United Rentals from $995.00 to $1,071.00 and gave the company an "overweight" rating in a research report on Friday, January 23rd. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, United Rentals has an average rating of "Moderate Buy" and a consensus target price of $925.59.

Insiders Place Their Bets

In other news, EVP William E. Grace sold 1,498 shares of the firm's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $790.89, for a total value of $1,184,753.22. Following the transaction, the executive vice president directly owned 6,872 shares in the company, valued at $5,434,996.08. This trade represents a 17.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Michael D. Durand sold 2,490 shares of the firm's stock in a transaction on Monday, February 2nd. The stock was 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 in the company, valued at $5,900,322.12. This represents a 25.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.53% of the company's stock.

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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