New Age Alpha Advisors LLC Has $8.83 Million Stake in United Rentals, Inc. $URI

Key Points

• New Age Alpha Advisors increased its stake in United Rentals by 212.2% in the fourth quarter, ending with 10,912 shares valued at about $8.83 million.
• United Rentals reported Q1 earnings that missed expectations, posting EPS of $9.71 versus the $11.47 consensus and revenue of $3.99 billion versus the expected $4.20 billion, though revenue still rose 7.2% year over year.
• The company is returning capital to shareholders through a $5 billion stock buyback and a quarterly dividend of $1.97 per share, payable May 27, while analysts currently rate the stock a Moderate Buy with an average target price of $996.94.

New Age Alpha Advisors LLC boosted its holdings in shares of United Rentals, Inc. (NYSE:URI - Free Report) by 212.2% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 10,912 shares of the construction company's stock after buying an additional 7,417 shares during the quarter. New Age Alpha Advisors LLC's holdings in United Rentals were worth $8,831,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the business. Capital International Investors increased its position in United Rentals by 22.8% during the third quarter. Capital International Investors now owns 3,402,524 shares of the construction company's stock worth $3,247,762,000 after buying an additional 631,484 shares during the last quarter. Capital World Investors increased its position in United Rentals by 6.7% during the third quarter. Capital World Investors now owns 2,678,614 shares of the construction company's stock worth $2,557,158,000 after buying an additional 168,685 shares during the last quarter. Franklin Resources Inc. increased its position in United Rentals by 6.8% during the third quarter. Franklin Resources Inc. now owns 1,315,086 shares of the construction company's stock worth $1,255,460,000 after buying an additional 83,978 shares during the last quarter. Alliancebernstein L.P. increased its position in United Rentals by 5.6% during the third quarter. Alliancebernstein L.P. now owns 1,088,209 shares of the construction company's stock worth $1,038,870,000 after buying an additional 57,977 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in United Rentals by 2.9% during the third quarter. Dimensional Fund Advisors LP now owns 948,386 shares of the construction company's stock worth $905,313,000 after buying an additional 26,847 shares during the last quarter. 96.26% of the stock is owned by institutional investors and hedge funds.

United Rentals Stock Up 0.1%

URI stock opened at $939.20 on Monday. The company has a debt-to-equity ratio of 1.37, a current ratio of 0.80 and a quick ratio of 0.74. United Rentals, Inc. has a 52-week low of $681.98 and a 52-week high of $1,021.47. The company has a 50-day moving average of $830.99 and a two-hundred day moving average of $841.15. The stock has a market capitalization of $58.84 billion, a price-to-earnings ratio of 23.96, a price-to-earnings-growth ratio of 1.49 and a beta of 1.83.

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

United Rentals announced that its board has authorized a stock buyback plan on Wednesday, January 28th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the construction company to reacquire up to 8.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its shares are undervalued.

United Rentals Announces Dividend

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

Insider Activity at United Rentals

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 completion of the sale, the senior vice president owned 5,738 shares in the company, valued at approximately $5,479,732.62. This trade represents a 5.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Andrew B. Limoges sold 548 shares of the stock in a transaction dated Friday, April 24th. The shares were 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 owned 1,865 shares of the company's stock, valued at approximately $1,823,708.90. The trade was a 22.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 26,088 shares of company stock worth $25,628,877 in the last three months. Corporate insiders own 0.47% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have commented on URI shares. KeyCorp increased their target price on shares of United Rentals from $950.00 to $1,150.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Truist Financial set a $1,209.00 target price on shares of United Rentals in a research report on Friday, April 24th. Sanford C. Bernstein set a $903.00 target price on shares of United Rentals and gave the stock an "outperform" rating in a research report on Thursday, April 9th. Robert W. Baird upped their price target on shares of United Rentals from $970.00 to $1,100.00 and gave the company an "outperform" rating in a report on Friday, April 24th. Finally, Barclays upped their price target on shares of United Rentals from $600.00 to $715.00 and gave the company an "underweight" rating in a report on Friday, April 24th. Thirteen equities 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's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price 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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