Jensen Investment Management Inc. Makes New $1.68 Million Investment in United Rentals, Inc. (NYSE:URI)

Key Points

• Jensen Investment Management Inc. acquired a new stake in United Rentals, Inc. during the 1st quarter, purchasing 2,680 shares valued at approximately $1.68 million.
• United Rentals reported quarterly earnings of $10.47 per share, slightly below analysts' expectations, but with revenues of $3.94 billion, exceeding estimates.
• The company has announced a quarterly dividend of $1.79, reflecting an annualized payout of $7.16 and a yield of 0.8%, with the next payment date on August 27th.

Jensen Investment Management Inc. acquired a new stake in shares of United Rentals, Inc. (NYSE:URI - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 2,680 shares of the construction company's stock, valued at approximately $1,680,000.

A number of other large investors also recently modified their holdings of the company. Elevation Point Wealth Partners LLC increased its holdings in United Rentals by 32.9% during the 1st quarter. Elevation Point Wealth Partners LLC now owns 2,220 shares of the construction company's stock valued at $1,391,000 after purchasing an additional 550 shares during the period. Dynamic Advisor Solutions LLC bought a new position in shares of United Rentals during the first quarter valued at approximately $602,000. Wealth Enhancement Advisory Services LLC lifted its stake in United Rentals by 12.4% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 7,160 shares of the construction company's stock worth $4,488,000 after acquiring an additional 789 shares during the period. Farther Finance Advisors LLC boosted its holdings in United Rentals by 101.6% in the first quarter. Farther Finance Advisors LLC now owns 859 shares of the construction company's stock valued at $543,000 after acquiring an additional 433 shares in the last quarter. Finally, Brookwood Investment Group LLC purchased a new position in United Rentals during the 1st quarter valued at $2,966,000. 96.26% of the stock is owned by hedge funds and other institutional investors.

United Rentals Stock Performance

Shares of NYSE:URI traded up $4.38 during midday trading on Friday, reaching $858.99. 273,017 shares of the company's stock traded hands, compared to its average volume of 657,143. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.80 and a current ratio of 0.86. United Rentals, Inc. has a one year low of $525.91 and a one year high of $903.60. The company has a market cap of $55.27 billion, a price-to-earnings ratio of 22.21, a P/E/G ratio of 1.99 and a beta of 1.72. The stock has a 50 day moving average of $777.39 and a 200 day moving average of $703.50.

United Rentals (NYSE:URI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The construction company reported $10.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $10.54 by ($0.07). United Rentals had a net margin of 16.11% and a return on equity of 32.01%. The company had revenue of $3.94 billion for the quarter, compared to analysts' expectations of $3.90 billion. During the same period in the previous year, the business earned $10.70 EPS. The business's revenue was up 4.5% compared to the same quarter last year. As a group, equities research analysts anticipate that United Rentals, Inc. will post 44.8 EPS for the current fiscal year.

United Rentals Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Stockholders of record on Wednesday, August 13th will be issued a dividend of $1.79 per share. This represents a $7.16 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, August 13th. United Rentals's dividend payout ratio is presently 18.52%.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Bank of America raised their target price on shares of United Rentals from $895.00 to $900.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Morgan Stanley raised their price objective on United Rentals from $702.00 to $955.00 and gave the company an "overweight" rating in a research report on Monday, July 28th. Robert W. Baird upped their target price on shares of United Rentals from $535.00 to $571.00 and gave the stock a "neutral" rating in a research report on Friday, April 25th. KeyCorp lifted their price target on shares of United Rentals from $865.00 to $960.00 and gave the company an "overweight" rating in a research report on Friday, July 25th. Finally, The Goldman Sachs Group upped their price objective on shares of United Rentals from $770.00 to $850.00 and gave the stock a "buy" rating in a report on Tuesday, May 27th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $830.71.

Insider Buying and Selling at United Rentals

In related news, VP Andrew B. Limoges sold 708 shares of United Rentals stock in a transaction on Monday, May 12th. The stock was sold at an average price of $705.86, for a total value of $499,748.88. Following the completion of the sale, the vice president owned 1,921 shares of the company's stock, valued at $1,355,957.06. The trade was a 26.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.53% of the stock is owned by insiders.

About United Rentals

United Rentals, Inc, through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.