King Luther Capital Management Corp Makes New Investment in United Rentals, Inc. $URI

Key Points

• King Luther Capital Management opened a new position in United Rentals during the fourth quarter, buying 9,645 shares valued at about $7.8 million.
• Several other institutional investors also increased their stakes, and the article notes that 96.26% of United Rentals is owned by hedge funds and other institutional investors.
• United Rentals reported earnings below expectations for the latest quarter, with EPS of $9.71 versus $11.47 expected, even as revenue rose 7.2% year over year; analysts still largely remain bullish with a Moderate Buy consensus and an average target price of about $1,006.

King Luther Capital Management Corp acquired a new position in shares of United Rentals, Inc. (NYSE:URI - Free Report) during the 4th quarter, according to its most recent 13F filing with the SEC. The firm acquired 9,645 shares of the construction company's stock, valued at approximately $7,806,000.

A number of other institutional investors and hedge funds have also made changes to their positions in URI. Capital International Investors increased its holdings in shares of United Rentals by 22.8% in 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 acquiring an additional 631,484 shares during the period. TD Asset Management Inc increased its holdings in shares of United Rentals by 66.5% in the 3rd quarter. TD Asset Management Inc now owns 484,450 shares of the construction company's stock valued at $462,485,000 after acquiring an additional 193,416 shares during the period. Robeco Institutional Asset Management B.V. increased its holdings in shares of United Rentals by 3,459.3% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 196,688 shares of the construction company's stock valued at $159,184,000 after acquiring an additional 191,162 shares during the period. Capital World Investors increased its holdings in shares of United Rentals by 6.7% in the 3rd 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 period. Finally, Public Sector Pension Investment Board increased 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 valued at $148,233,000 after acquiring an additional 150,412 shares during the period. 96.26% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at United Rentals

In related news, CEO Matthew John Flannery sold 22,768 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $984.98, for a total value of $22,426,024.64. Following the transaction, the chief executive officer owned 99,980 shares in the company, valued at approximately $98,478,300.40. This represents a 18.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Andrew B. Limoges sold 548 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $977.86, for a total transaction of $535,867.28. Following the completion of the transaction, the vice president owned 1,865 shares in the company, valued at approximately $1,823,708.90. This trade represents a 22.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 26,088 shares of company stock worth $25,628,877 in the last 90 days. Corporate insiders own 0.47% of the company's stock.

United Rentals Stock Up 2.7%

United Rentals stock opened at $989.11 on Thursday. United Rentals, Inc. has a fifty-two week low of $681.98 and a fifty-two week high of $1,021.47. The business's 50-day simple moving average is $844.61 and its two-hundred day simple moving average is $843.63. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.74 and a current ratio of 0.80. The company has a market cap of $61.97 billion, a PE ratio of 25.23, a PEG ratio of 1.53 and a beta of 1.83.

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

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

United Rentals Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th were issued a $1.97 dividend. This represents a $7.88 annualized dividend and a yield of 0.8%. The ex-dividend date was Wednesday, May 13th. United Rentals's dividend payout ratio is 20.10%.

Wall Street Analysts Forecast Growth

URI has been the topic of a number of analyst reports. Truist Financial set a $1,209.00 price target on United Rentals in a report on Friday, April 24th. Royal Bank Of Canada raised their price objective on United Rentals from $1,041.00 to $1,119.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. Citigroup raised their price objective on United Rentals from $950.00 to $1,130.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. Robert W. Baird raised their price objective on United Rentals from $970.00 to $1,100.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. Finally, KeyCorp raised their price objective on United Rentals from $950.00 to $1,150.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Twelve research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,006.13.

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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