Capital International Investors Has $3.25 Billion Position in United Rentals, Inc. $URI

Key Points

• Capital International Investors raised its stake by 22.8% to 3,402,524 shares (about 5.35% of the company), a position valued at roughly $3.25 billion at quarter-end.
• United Rentals' board approved a $5.00 billion share repurchase program (up to 8.7% of shares) and increased the quarterly dividend to $1.97 ($7.88 annualized).
• The company missed quarterly EPS estimates ($11.09 vs. $11.86 consensus), and analysts' consensus rating is a "Moderate Buy" with a $925.59 price target.

Capital International Investors increased its holdings in shares of United Rentals, Inc. (NYSE:URI - Free Report) by 22.8% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,402,524 shares of the construction company's stock after purchasing an additional 631,484 shares during the period. Capital International Investors owned approximately 5.35% of United Rentals worth $3,247,762,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. Optas LLC boosted its holdings in shares of United Rentals by 0.9% in the third quarter. Optas LLC now owns 1,174 shares of the construction company's stock valued at $1,121,000 after buying an additional 10 shares during the period. CreativeOne Wealth LLC raised its stake in shares of United Rentals by 0.5% in the 2nd quarter. CreativeOne Wealth LLC now owns 2,283 shares of the construction company's stock valued at $1,720,000 after purchasing an additional 11 shares during the period. OFI Invest Asset Management lifted its holdings in shares of United Rentals by 6.7% in the third quarter. OFI Invest Asset Management now owns 175 shares of the construction company's stock valued at $167,000 after purchasing an additional 11 shares in the last quarter. Great Valley Advisor Group Inc. grew its holdings in shares of United Rentals by 2.9% during the second quarter. Great Valley Advisor Group Inc. now owns 387 shares of the construction company's stock worth $292,000 after buying an additional 11 shares in the last quarter. Finally, Opal Wealth Advisors LLC lifted its stake in United Rentals by 2.7% in the 3rd quarter. Opal Wealth Advisors LLC now owns 450 shares of the construction company's stock valued at $430,000 after acquiring an additional 12 shares in the last quarter. 96.26% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

URI has been the subject of a number of analyst reports. Citigroup decreased their target price on shares of United Rentals from $1,090.00 to $950.00 and set a "buy" rating for the company in a research report on Monday, February 2nd. UBS Group upgraded shares of United Rentals from a "neutral" rating to a "buy" rating and set a $1,025.00 price target for the company in a research note on Sunday, January 4th. Truist Financial set a $972.00 price target on United Rentals in a report on Friday, January 30th. Royal Bank Of Canada decreased their target price on United Rentals from $1,123.00 to $1,041.00 and set an "outperform" rating on the stock in a report on Friday, January 30th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of United Rentals from $1,150.00 to $970.00 and set an "overweight" rating on the stock in a research report on Friday, January 30th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, United Rentals presently has a consensus rating of "Moderate Buy" and a consensus price target of $925.59.

United Rentals Trading Up 1.3%

Shares of United Rentals stock opened at $820.50 on Tuesday. The firm's 50-day moving average price is $872.83 and its two-hundred day moving average price is $885.68. The company has a market capitalization of $51.69 billion, a price-to-earnings ratio of 21.21, a PEG ratio of 1.31 and a beta of 1.66. The company has a quick ratio of 0.88, a current ratio of 0.94 and a debt-to-equity ratio of 1.41. United Rentals, Inc. has a 12-month low of $525.91 and a 12-month high of $1,021.47.

United Rentals (NYSE:URI - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The construction company reported $11.09 EPS for the quarter, missing the consensus estimate of $11.86 by ($0.77). United Rentals had a net margin of 15.49% and a return on equity of 30.35%. The firm had revenue of $4.21 billion for the quarter, compared to analyst estimates of $4.24 billion. During the same quarter in the prior year, the firm earned $11.59 earnings per share. The firm's revenue for the quarter was up 2.8% on a year-over-year basis. On average, 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. Shareholders of record on Wednesday, February 11th were given a $1.97 dividend. This is an increase from United Rentals's previous quarterly dividend of $1.79. This represents a $7.88 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Wednesday, February 11th. United Rentals's dividend payout ratio (DPR) is 20.37%.

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

Insider Buying and Selling at United Rentals

In related 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 transaction of $1,184,753.22. Following the sale, the executive vice president owned 6,872 shares of the company's stock, valued at $5,434,996.08. This trade represents a 17.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Michael D. Durand sold 2,490 shares of the 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 $5,900,322.12. This represents a 25.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.51% 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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