Millennium Capital Advisors LLC Acquires Shares of 2,458 United Rentals, Inc. $URI

Key Points

• Millennium Capital Advisors initiated a new position in United Rentals, buying 2,458 shares worth about $1.99 million in the fourth quarter. The stake makes URI roughly 1.2% of the firm’s portfolio.
• United Rentals reported weaker-than-expected quarterly results, with EPS of $9.71 versus the $11.47 consensus and revenue of $3.99 billion versus $4.20 billion expected. Even so, revenue still rose 7.2% year over year.
• The company authorized a $5 billion share buyback and declared a quarterly dividend of $1.97 per share, payable May 27. Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target near $996.94.

Millennium Capital Advisors LLC acquired a new stake in shares of United Rentals, Inc. (NYSE:URI - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 2,458 shares of the construction company's stock, valued at approximately $1,989,000. United Rentals comprises about 1.2% of Millennium Capital Advisors LLC's portfolio, making the stock its 18th biggest holding.

A number of other large investors have also recently added to or reduced their stakes in URI. Woodline Partners LP boosted its stake in United Rentals by 40.0% during the 1st quarter. Woodline Partners LP now owns 5,518 shares of the construction company's stock valued at $3,458,000 after acquiring an additional 1,577 shares during the last quarter. Sei Investments Co. boosted its stake in United Rentals by 24.7% during the 2nd quarter. Sei Investments Co. now owns 27,136 shares of the construction company's stock valued at $20,444,000 after acquiring an additional 5,375 shares during the last quarter. Treasurer of the State of North Carolina boosted its stake in United Rentals by 43.6% during the 2nd 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 acquiring an additional 17,030 shares during the last quarter. HUB Investment Partners LLC raised its holdings in shares of United Rentals by 11.3% during the second quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company's stock worth $1,661,000 after purchasing an additional 223 shares during the period. Finally, Diversify Advisory Services LLC raised its holdings in shares of United Rentals by 338.7% during the second quarter. Diversify Advisory Services LLC now owns 1,654 shares of the construction company's stock worth $1,246,000 after purchasing an additional 1,277 shares during the period. 96.26% of the stock is currently owned by institutional investors.

United Rentals Stock Down 1.2%

URI stock opened at $961.22 on Friday. The company has a quick ratio of 0.74, a current ratio of 0.80 and a debt-to-equity ratio of 1.37. United Rentals, Inc. has a fifty-two week low of $681.98 and a fifty-two week high of $1,021.47. The firm's 50-day simple moving average is $818.01 and its 200 day simple moving average is $839.18. The stock has a market cap of $60.22 billion, a PE ratio of 24.52, a price-to-earnings-growth ratio of 1.53 and a beta of 1.83.

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

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

United Rentals Dividend Announcement

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 $1.97 dividend. This represents a $7.88 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, May 13th. United Rentals's dividend payout ratio (DPR) is 20.10%.

Insider Activity

In related news, SVP Joli L. Gross sold 306 shares of the stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $954.99, for a total value of $292,226.94. Following the sale, the senior vice president owned 5,738 shares of the company's stock, valued at $5,479,732.62. This trade represents a 5.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Andrew B. Limoges sold 548 shares of the stock in a transaction dated 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 sale, the vice president directly 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 sold 26,088 shares of company stock worth $25,628,877 in the last 90 days. 0.47% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of analysts have weighed in on URI shares. Truist Financial set a $1,209.00 target price on shares of United Rentals in a report on Friday, April 24th. Morgan Stanley reissued an "overweight" rating and set a $1,030.00 target price on shares of United Rentals in a report on Friday, April 24th. Citigroup increased their target price on shares of United Rentals from $950.00 to $1,130.00 and gave the stock a "buy" rating in a report on Friday, April 24th. JPMorgan Chase & Co. increased their target price on shares of United Rentals from $850.00 to $1,050.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Finally, Royal Bank Of Canada increased their target price on shares of United Rentals from $1,041.00 to $1,119.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Thirteen 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. According to MarketBeat.com, United Rentals has a consensus rating of "Moderate Buy" and an average price target of $996.94.

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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