North Dakota State Investment Board Invests $1.78 Million in United Rentals, Inc. $URI

Key Points

• North Dakota State Investment Board opened a new position in United Rentals, buying 2,201 shares worth about $1.78 million in the fourth quarter.
• Institutional ownership remains very high, with several large funds adding to their stakes; overall, about 96.26% of United Rentals is owned by institutions and hedge funds.
• United Rentals reported Q1 results below expectations, with EPS of $9.71 versus $11.47 expected and revenue of $3.99 billion versus $4.20 billion expected, even as revenue rose 7.2% year over year.

North Dakota State Investment Board purchased a new position in shares of United Rentals, Inc. (NYSE:URI - Free Report) in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,201 shares of the construction company's stock, valued at approximately $1,781,000.

Several other institutional investors also recently modified their holdings of the stock. Capital International Investors increased its holdings in shares of 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 in the last quarter. Capital World Investors increased its holdings in shares of 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 in the last quarter. Franklin Resources Inc. increased its holdings in shares of 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 in the last quarter. Alliancebernstein L.P. increased its holdings in shares of 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 in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in shares of 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 in the last quarter. 96.26% of the stock is currently owned by institutional investors and hedge funds.

United Rentals Stock Performance

Shares of United Rentals stock opened at $929.38 on Wednesday. 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 twelve month low of $681.98 and a twelve month high of $1,021.47. The stock has a market cap of $58.23 billion, a price-to-earnings ratio of 23.71, a P/E/G ratio of 1.50 and a beta of 1.83. The company's fifty day moving average is $822.41 and its 200 day moving average is $839.63.

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

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

United Rentals announced that its Board of Directors has approved a share buyback plan on Wednesday, January 28th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the construction company to buy up to 8.7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

URI has been the topic of several analyst reports. Robert W. Baird boosted their price objective on shares of United Rentals from $970.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Morgan Stanley reissued an "overweight" rating and issued a $1,030.00 price objective on shares of United Rentals in a research note on Friday, April 24th. KeyCorp boosted their price objective on shares of United Rentals from $950.00 to $1,150.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Sanford C. Bernstein set a $903.00 price objective on shares of United Rentals and gave the stock an "outperform" rating in a research note on Thursday, April 9th. Finally, Barclays boosted their price objective on shares of United Rentals from $600.00 to $715.00 and gave the stock an "underweight" rating in a research note on Friday, April 24th. Thirteen equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $996.94.

Insider Activity

In other United Rentals news, SVP Joli L. Gross sold 306 shares of the company's stock in a transaction on Monday, April 27th. The shares were sold at an average price of $954.99, for a total transaction of $292,226.94. Following the sale, the senior vice president owned 5,738 shares of the company's stock, valued at approximately $5,479,732.62. This represents a 5.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Andrew B. Limoges sold 548 shares of the company's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $977.86, for a total transaction of $535,867.28. Following the sale, the vice president directly owned 1,865 shares in the company, valued at $1,823,708.90. This trade represents a 22.71% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 26,088 shares of company stock worth $25,628,877. 0.47% of the stock is owned by insiders.

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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