KTF Investments LLC Buys Shares of 32,048 United Rentals, Inc. $URI

Key Points

• KTF Investments LLC initiated a new stake in United Rentals (NYSE:URI), buying 32,048 shares valued at about $25.94 million, which makes the holding 4.3% of KTF's portfolio and amounted to 0.05% ownership of the company.
• Company insiders have been net sellers: CEO Matthew Flannery sold 22,768 shares for roughly $22.43 million (an 18.55% reduction in his stake), and insiders disposed of 30,076 shares totaling about $28.78 million over the past 90 days.
• United Rentals missed Q1 estimates (EPS $9.71 vs. $11.47 expected; revenue $3.99B vs. $4.20B expected) but the board authorized a $5.0 billion share buyback (up to 8.7% of shares) and declared a $1.97 quarterly dividend; analysts' consensus rating is a Moderate Buy with an average target of $986.35.

KTF Investments LLC bought a new stake in United Rentals, Inc. (NYSE:URI - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 32,048 shares of the construction company's stock, valued at approximately $25,937,000. United Rentals comprises 4.3% of KTF Investments LLC's investment portfolio, making the stock its 7th biggest position. KTF Investments LLC owned 0.05% of United Rentals at the end of the most recent reporting period.

A number of other institutional investors have also recently modified their holdings of URI. Woodline Partners LP boosted its stake in shares of United Rentals by 40.0% in the first quarter. Woodline Partners LP now owns 5,518 shares of the construction company's stock valued at $3,458,000 after buying an additional 1,577 shares in the last quarter. Sei Investments Co. boosted its stake in shares of United Rentals by 24.7% in the second quarter. Sei Investments Co. now owns 27,136 shares of the construction company's stock valued at $20,444,000 after buying an additional 5,375 shares in the last quarter. Treasurer of the State of North Carolina boosted its stake in shares of United Rentals by 43.6% in the second quarter. Treasurer of the State of North Carolina now owns 56,057 shares of the construction company's stock valued at $42,233,000 after buying an additional 17,030 shares in the last quarter. HUB Investment Partners LLC boosted its stake in shares of United Rentals by 11.3% in the second quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company's stock valued at $1,661,000 after buying an additional 223 shares in the last quarter. Finally, Diversify Advisory Services LLC boosted its stake in shares of United Rentals by 338.7% in the second quarter. Diversify Advisory Services LLC now owns 1,654 shares of the construction company's stock valued at $1,246,000 after buying an additional 1,277 shares in the last quarter. 96.26% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, CEO Matthew John Flannery sold 22,768 shares of the business's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $984.98, for a total value of $22,426,024.64. Following the completion of the transaction, the chief executive officer directly owned 99,980 shares of the company's stock, valued at $98,478,300.40. The trade was a 18.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP William E. Grace sold 1,498 shares of the business's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $790.89, for a total value of $1,184,753.22. Following the completion of the transaction, the executive vice president directly owned 6,872 shares of the company's stock, valued at approximately $5,434,996.08. This trade represents a 17.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 30,076 shares of company stock valued at $28,783,569. Company insiders own 0.47% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Citigroup lifted their price target on United Rentals from $950.00 to $1,130.00 and gave the company a "buy" rating in a research note on Friday. Wells Fargo & Company lifted their price target on United Rentals from $995.00 to $1,071.00 and gave the company an "overweight" rating in a research note on Friday, January 23rd. UBS Group raised United Rentals from a "neutral" rating to a "buy" rating and set a $1,025.00 price objective for the company in a report on Sunday, January 4th. KeyCorp lifted their price objective on United Rentals from $950.00 to $1,150.00 and gave the stock an "overweight" rating in a report on Friday. Finally, Sanford C. Bernstein set a $903.00 price objective on United Rentals and gave the stock an "outperform" rating in a report on Thursday, April 9th. Thirteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $986.35.

United Rentals Stock Performance

Shares of URI stock opened at $959.42 on Tuesday. The stock has a fifty day moving average price of $797.24 and a 200 day moving average price of $840.42. The stock has a market cap of $60.11 billion, a PE ratio of 24.47, a P/E/G ratio of 1.56 and a beta of 1.68. United Rentals, Inc. has a 1 year low of $611.93 and a 1 year high of $1,021.47. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.74 and a current ratio of 0.80.

United Rentals (NYSE:URI - Get Free Report) last issued its quarterly earnings data 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). The firm had revenue of $3.99 billion for the quarter, compared to analyst estimates of $4.20 billion. United Rentals had a return on equity of 30.56% and a net margin of 15.32%.The business's revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $8.86 earnings per share. Sell-side analysts forecast that United Rentals, Inc. will post 46.68 earnings per share for the current fiscal year.

United Rentals declared that its board has authorized a share buyback program on Wednesday, January 28th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the construction company to repurchase up to 8.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

United Rentals Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th will be issued a dividend of $1.97 per share. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $7.88 annualized dividend and a yield of 0.8%. United Rentals's payout ratio is currently 20.10%.

About United Rentals

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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