Capital Group Private Client Services Inc. Cuts Stock Position in United Rentals, Inc. $URI

Key Points

• Capital Group Private Client Services cut its United Rentals stake by 18.5% in the fourth quarter, selling 3,479 shares and leaving it with 15,366 shares worth about $12.4 million.
• United Rentals reported weaker-than-expected quarterly earnings, posting $9.71 EPS versus the $11.47 estimate and revenue of $3.99 billion versus the $4.20 billion forecast, though revenue still rose 7.2% year over year.
• Despite mixed results, analysts remain broadly positive: the stock has a Moderate Buy consensus rating with an average price target of $1,013.63, while the company also recently paid a quarterly dividend of $1.97 per share.

Capital Group Private Client Services Inc. lowered its position in United Rentals, Inc. (NYSE:URI - Free Report) by 18.5% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 15,366 shares of the construction company's stock after selling 3,479 shares during the period. Capital Group Private Client Services Inc.'s holdings in United Rentals were worth $12,436,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of URI. Aventura Private Wealth LLC purchased a new stake in United Rentals during the 4th quarter worth approximately $27,000. Core Wealth Advisors LLC purchased a new stake in United Rentals during the 4th quarter worth approximately $28,000. Abich Financial Wealth Management LLC purchased a new stake in United Rentals during the 3rd quarter worth approximately $29,000. Board of the Pension Protection Fund purchased a new stake in United Rentals during the 4th quarter worth approximately $32,000. Finally, Laurel Wealth Advisors LLC purchased a new stake in United Rentals during the 4th quarter worth approximately $32,000. Hedge funds and other institutional investors own 96.26% of the company's stock.

United Rentals Stock Performance

URI opened at $1,067.62 on Friday. The company has a debt-to-equity ratio of 1.37, a current ratio of 0.80 and a quick ratio of 0.74. The firm has a fifty day moving average price of $885.82 and a 200 day moving average price of $852.39. United Rentals, Inc. has a 1 year low of $682.08 and a 1 year high of $1,091.23. The stock has a market cap of $66.89 billion, a P/E ratio of 27.24, a P/E/G ratio of 1.70 and a beta of 1.81.

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

United Rentals Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th were paid a $1.97 dividend. This represents a $7.88 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Wednesday, May 13th. United Rentals's payout ratio is currently 20.10%.

Insider Activity

In related news, EVP Craig Adam Pintoff sold 2,466 shares of the business's stock in a transaction on 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 completion of the transaction, the executive vice president directly owned 14,774 shares in the company, valued at $14,227,362. The trade was a 14.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Joli L. Gross sold 306 shares of the business's stock in a transaction on Monday, April 27th. The shares were 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 of the company's stock, valued at approximately $5,479,732.62. This represents a 5.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 26,088 shares of company stock valued at $25,628,877. 0.47% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several analysts have weighed in on the stock. JPMorgan Chase & Co. boosted their target price on shares of United Rentals from $850.00 to $1,050.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Citigroup lifted their price objective on shares of United Rentals from $950.00 to $1,130.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Morgan Stanley restated an "overweight" rating and set a $1,030.00 price objective on shares of United Rentals in a research note on Friday, April 24th. Barclays lifted their price objective on shares of United Rentals from $600.00 to $715.00 and gave the company an "underweight" rating in a research note on Friday, April 24th. Finally, Sanford C. Bernstein set a $903.00 price objective on shares of United Rentals and gave the company an "outperform" rating in a research note on Thursday, April 9th. Twelve investment 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 has a consensus rating of "Moderate Buy" and an average price target of $1,013.63.

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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