United Rentals, Inc. $URI Position Raised by Jag Capital Management LLC

Key Points

• Jag Capital Management boosted its United Rentals stake by 192.3% in the fourth quarter, ending with 18,770 shares valued at about $15.2 million. United Rentals now represents 1.6% 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. Revenue still rose 7.2% year over year, and analysts see full-year EPS of 47.07.
• The company also authorized a $5 billion share buyback and declared a quarterly dividend of $1.97 per share, payable May 27. Meanwhile, insider selling picked up, including a large sale by CEO Matthew John Flannery.

Jag Capital Management LLC increased its position in shares of United Rentals, Inc. (NYSE:URI - Free Report) by 192.3% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 18,770 shares of the construction company's stock after purchasing an additional 12,349 shares during the period. United Rentals accounts for about 1.6% of Jag Capital Management LLC's investment portfolio, making the stock its 23rd largest holding. Jag Capital Management LLC's holdings in United Rentals were worth $15,191,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Aventura Private Wealth LLC bought a new stake in United Rentals during the fourth quarter worth approximately $27,000. Abich Financial Wealth Management LLC bought a new stake in United Rentals during the third quarter worth approximately $29,000. Board of the Pension Protection Fund bought a new stake in United Rentals during the fourth quarter worth approximately $32,000. Laurel Wealth Advisors LLC bought a new stake in United Rentals during the fourth quarter worth approximately $32,000. Finally, Fortitude Family Office LLC raised its holdings in United Rentals by 121.1% during the fourth quarter. Fortitude Family Office LLC now owns 42 shares of the construction company's stock worth $34,000 after purchasing an additional 23 shares in the last quarter. Institutional investors own 96.26% of the company's stock.

United Rentals Trading Down 1.6%

NYSE URI opened at $929.38 on Wednesday. United Rentals, Inc. has a twelve month low of $681.98 and a twelve month 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. The stock has a market cap of $58.23 billion, a price-to-earnings ratio of 23.71, a PEG ratio of 1.50 and a beta of 1.83. The firm's 50 day moving average price is $822.41 and its two-hundred day moving average price is $839.63.

United Rentals (NYSE:URI - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The construction company reported $9.71 earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to analysts' expectations of $4.20 billion. During the same quarter in the previous year, the firm posted $8.86 earnings per share. The company's revenue for the quarter was up 7.2% on a year-over-year basis. Equities analysts anticipate that United Rentals, Inc. will post 47.07 EPS for the current year.

United Rentals declared that its board has approved a stock repurchase plan on Wednesday, January 28th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the construction company to purchase up to 8.7% of its stock through open market purchases. Stock buyback plans are often 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. Shareholders of record on Wednesday, May 13th will be given a dividend of $1.97 per share. This represents a $7.88 annualized dividend and a yield of 0.8%. The ex-dividend date is Wednesday, May 13th. United Rentals's payout ratio is presently 20.10%.

Insider Activity

In other United Rentals news, CEO Matthew John Flannery sold 22,768 shares of United Rentals stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $984.98, for a total transaction of $22,426,024.64. Following the transaction, the chief executive officer directly owned 99,980 shares in the company, valued at approximately $98,478,300.40. The trade was a 18.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Joli L. Gross sold 306 shares of United Rentals stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $954.99, for a total transaction of $292,226.94. Following the transaction, the senior vice president owned 5,738 shares in the company, valued at approximately $5,479,732.62. The trade was a 5.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 26,088 shares of company stock valued at $25,628,877. 0.47% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research analysts have issued reports on URI shares. Morgan Stanley reaffirmed an "overweight" rating and issued a $1,030.00 price target on shares of United Rentals in a report on Friday, April 24th. Barclays upped their price target on United Rentals from $600.00 to $715.00 and gave the company an "underweight" rating in a report on Friday, April 24th. Evercore reaffirmed an "outperform" rating and issued a $1,101.00 price target on shares of United Rentals in a report on Monday, May 11th. Truist Financial set a $1,209.00 price target on United Rentals in a report on Friday, April 24th. Finally, Weiss Ratings cut United Rentals from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, May 4th. Thirteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, United Rentals has an average rating of "Moderate Buy" and an average price target of $996.94.

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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