Gabelli Funds LLC Has $37.90 Million Stock Holdings in United Rentals, Inc. $URI

Key Points

• Gabelli Funds LLC trimmed its position in United Rentals by 5% in Q3, holding 39,700 shares worth about $37.9 million (roughly 0.06% of the company) after selling 2,100 shares.
• The board approved a $5.00 billion share repurchase program (up to ~8.7% of shares) and raised the quarterly dividend to $1.97 ($7.88 annual), signaling management confidence in the stock.
• Two executive VPs sold stock in early February—Michael D. Durand sold 2,490 shares for ~$1.97M (cutting his stake by 25.0%) and William E. Grace sold 1,498 shares for ~$1.18M (a 17.9% cut)—while the company slightly missed quarterly estimates (EPS $11.09 vs. $11.86 expected; revenue $4.21B vs. $4.24B expected).

Gabelli Funds LLC decreased its position in United Rentals, Inc. (NYSE:URI - Free Report) by 5.0% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 39,700 shares of the construction company's stock after selling 2,100 shares during the quarter. Gabelli Funds LLC owned 0.06% of United Rentals worth $37,900,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. TD Waterhouse Canada Inc. raised its position in United Rentals by 73.3% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 5,740 shares of the construction company's stock valued at $5,533,000 after purchasing an additional 2,428 shares during the last quarter. National Pension Service boosted its stake in United Rentals by 4.5% in the third quarter. National Pension Service now owns 103,146 shares of the construction company's stock worth $98,469,000 after purchasing an additional 4,415 shares in the last quarter. North Growth Management Ltd. grew its holdings in shares of United Rentals by 22.2% during the third quarter. North Growth Management Ltd. now owns 11,000 shares of the construction company's stock worth $10,189,000 after purchasing an additional 2,000 shares during the last quarter. Vise Technologies Inc. acquired a new stake in shares of United Rentals in the second quarter valued at $7,514,000. Finally, HB Wealth Management LLC increased its stake in shares of United Rentals by 37.2% in the third quarter. HB Wealth Management LLC now owns 6,608 shares of the construction company's stock valued at $6,308,000 after buying an additional 1,790 shares in the last quarter. Institutional investors and hedge funds own 96.26% of the company's stock.

Insider Buying and Selling

In related news, EVP Michael D. Durand sold 2,490 shares of the business's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $791.14, for a total transaction of $1,969,938.60. Following the completion of the sale, the executive vice president directly owned 7,458 shares of the company's stock, valued at $5,900,322.12. The trade was a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP William E. Grace sold 1,498 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total transaction of $1,184,753.22. Following the completion of the transaction, the executive vice president owned 6,872 shares in the company, valued at $5,434,996.08. This represents a 17.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.53% of the company's stock.

United Rentals Trading Down 3.8%

Shares of URI opened at $811.30 on Friday. The stock's fifty day simple moving average is $872.79 and its 200-day simple moving average is $886.49. The firm has a market capitalization of $51.11 billion, a PE ratio of 20.97, a price-to-earnings-growth ratio of 1.36 and a beta of 1.66. United Rentals, Inc. has a 12-month low of $525.91 and a 12-month high of $1,021.47. 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 (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 analysts' consensus estimates of $11.86 by ($0.77). The firm had revenue of $4.21 billion during the quarter, compared to analyst estimates of $4.24 billion. United Rentals had a return on equity of 30.35% and a net margin of 15.49%.United Rentals's revenue for the quarter was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $11.59 earnings per share. As a group, research analysts predict that United Rentals, Inc. will post 44.8 earnings per share for the current year.

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

United Rentals Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, February 25th. Stockholders of record on Wednesday, February 11th were given a dividend of $1.97 per share. The ex-dividend date was Wednesday, February 11th. This represents a $7.88 annualized dividend and a dividend yield of 1.0%. 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%.

Wall Street Analysts Forecast Growth

URI has been the topic of several research reports. Robert W. Baird set a $970.00 price target on shares of United Rentals in a research report on Friday, January 30th. Truist Financial set a $972.00 price objective on shares of United Rentals in a research report 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. Citigroup reduced their target price on shares of United Rentals from $1,090.00 to $950.00 and set a "buy" rating on the stock in a research report on Monday, February 2nd. Finally, KeyCorp set a $950.00 price target on shares of United Rentals in a research note on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $925.59.

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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