Sumitomo Mitsui Trust Group Inc. Trims Stock Position in United Rentals, Inc. $URI

Key Points

• Sumitomo Mitsui Trust Group reduced its stake in United Rentals by 6.2% in Q4 to 161,724 shares, still owning about 0.25% of the company worth roughly $130.9 million.
• United Rentals' board approved a $5.0 billion share repurchase (about 8.7% of shares) and raised the quarterly dividend to $1.97 ($7.88 annual), boosting shareholder-return measures.
• The company missed Q4 estimates—EPS $11.09 vs. $11.86 expected and revenue $4.21B vs. $4.24B—and two EVPs (Durand and Grace) sold a combined ~3,988 shares for about $3.15 million, trimming insider positions.

Sumitomo Mitsui Trust Group Inc. cut its holdings in shares of United Rentals, Inc. (NYSE:URI - Free Report) by 6.2% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 161,724 shares of the construction company's stock after selling 10,609 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.25% of United Rentals worth $130,886,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Salomon & Ludwin LLC increased its stake in United Rentals by 650.0% during the third quarter. Salomon & Ludwin LLC now owns 30 shares of the construction company's stock worth $29,000 after acquiring an additional 26 shares during the last quarter. Abich Financial Wealth Management LLC acquired a new stake in United Rentals during the third quarter worth about $29,000. Aventura Private Wealth LLC acquired a new stake in United Rentals during the fourth quarter worth about $27,000. Cedar Mountain Advisors LLC acquired a new stake in United Rentals during the third quarter worth about $32,000. Finally, KERR FINANCIAL PLANNING Corp acquired a new stake in United Rentals during the third quarter worth about $35,000. 96.26% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have commented on URI. Wells Fargo & Company upped their price target on United Rentals from $995.00 to $1,071.00 and gave the stock an "overweight" rating in a research note on Friday, January 23rd. KeyCorp set a $950.00 price target on United Rentals in a research note on Friday, January 30th. Robert W. Baird set a $970.00 price target on United Rentals in a research note on Friday, January 30th. Royal Bank Of Canada dropped their price target on United Rentals from $1,123.00 to $1,041.00 and set an "outperform" rating for the company in a research note on Friday, January 30th. Finally, UBS Group upgraded United Rentals from a "neutral" rating to a "buy" rating and set a $1,025.00 price target for the company in a research note on Sunday, January 4th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, United Rentals currently has an average rating of "Moderate Buy" and an average target price of $914.88.

Insider Transactions at United Rentals

In other news, EVP Michael D. Durand sold 2,490 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $791.14, for a total value of $1,969,938.60. Following the completion of the sale, the executive vice president owned 7,458 shares in the company, valued at approximately $5,900,322.12. This trade represents a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP William E. Grace sold 1,498 shares of the stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total value of $1,184,753.22. Following the completion of the sale, the executive vice president 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 position. The SEC filing for this sale provides additional information. 0.47% of the stock is currently owned by company insiders.

United Rentals Price Performance

URI stock opened at $778.68 on Tuesday. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.88 and a current ratio of 0.94. United Rentals, Inc. has a 1 year low of $557.05 and a 1 year high of $1,021.47. The firm has a market cap of $48.97 billion, a P/E ratio of 20.13, a price-to-earnings-growth ratio of 1.25 and a beta of 1.68. The stock has a 50-day simple moving average of $800.56 and a 200-day simple moving average of $849.30.

United Rentals (NYSE:URI - Get Free Report) last posted its earnings results on Wednesday, January 28th. The construction company reported $11.09 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $11.86 by ($0.77). United Rentals had a net margin of 15.49% and a return on equity of 30.35%. The company had revenue of $4.21 billion during the quarter, compared to analyst estimates of $4.24 billion. During the same quarter last year, the business posted $11.59 EPS. United Rentals's quarterly revenue was up 2.8% compared to the same quarter last year. On average, equities analysts predict that United Rentals, Inc. will post 44.8 earnings per share for the current fiscal year.

United Rentals Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Stockholders of record on Wednesday, February 11th were paid a $1.97 dividend. This represents a $7.88 dividend on an annualized basis and a dividend yield of 1.0%. This is an increase from United Rentals's previous quarterly dividend of $1.79. The ex-dividend date was Wednesday, February 11th. United Rentals's payout ratio is 20.37%.

United Rentals declared that its Board of Directors has approved a share repurchase plan on Wednesday, January 28th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the construction company to reacquire up to 8.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its stock is undervalued.

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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