United Rentals, Inc. $URI Shares Acquired by Capital International Sarl

Key Points

• Capital International Sarl increased its stake in United Rentals by 34.8%, buying 2,393 additional shares to hold 9,271 shares valued at about $8.85 million.
• United Rentals' board authorized a $5.0 billion share buyback (up to 8.7% of outstanding shares) and raised the quarterly dividend to $1.97 ($7.88 annualized, ~1.0% yield).
• The company missed the quarter—EPS of $11.09 vs. $11.86 expected and revenue $4.21B vs. $4.24B—shares fell ~5.6%, while analysts retain a "Moderate Buy" consensus with an average target of $925.59.

Capital International Sarl increased its stake in shares of United Rentals, Inc. (NYSE:URI - Free Report) by 34.8% in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 9,271 shares of the construction company's stock after purchasing an additional 2,393 shares during the period. Capital International Sarl's holdings in United Rentals were worth $8,851,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently bought and sold shares of the company. Loomis Sayles & Co. L P acquired a new position in shares of United Rentals during the second quarter valued at approximately $28,000. Salomon & Ludwin LLC raised its stake in United Rentals by 650.0% in the 3rd quarter. Salomon & Ludwin LLC now owns 30 shares of the construction company's stock valued at $29,000 after purchasing an additional 26 shares during the last quarter. Abich Financial Wealth Management LLC purchased a new position in United Rentals in the 3rd quarter valued at $29,000. Cedar Mountain Advisors LLC acquired a new stake in United Rentals during the 3rd quarter worth $32,000. Finally, Steigerwald Gordon & Koch Inc. purchased a new stake in shares of United Rentals during the third quarter worth $40,000. 96.26% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Sanford C. Bernstein set a $965.00 price target on shares of United Rentals in a research report on Friday, January 30th. Robert W. Baird set a $970.00 target price on United Rentals in a report on Friday, January 30th. Citigroup cut their price target on United Rentals from $1,090.00 to $950.00 and set a "buy" rating for the company in a report on Monday, February 2nd. KeyCorp set a $950.00 target price on United Rentals in a report on Friday, January 30th. Finally, Wells Fargo & Company lifted their price target on United Rentals from $995.00 to $1,071.00 and gave the stock an "overweight" rating in a report on Friday, January 23rd. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $925.59.

Insiders Place Their Bets

In other news, EVP William E. Grace sold 1,498 shares of the firm's stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $790.89, for a total transaction of $1,184,753.22. Following the completion of the transaction, the executive vice president directly owned 6,872 shares in the company, valued at $5,434,996.08. This trade represents a 17.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Michael D. Durand sold 2,490 shares of the business's stock in a transaction on Monday, February 2nd. The shares were 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 $5,900,322.12. This represents a 25.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.51% of the stock is owned by corporate insiders.

United Rentals Stock Down 5.6%

Shares of URI opened at $774.86 on Wednesday. The company's 50-day moving average price is $871.98 and its 200 day moving average price is $884.59. United Rentals, Inc. has a 12-month low of $525.91 and a 12-month high of $1,021.47. The company has a current ratio of 0.94, a quick ratio of 0.88 and a debt-to-equity ratio of 1.41. The firm has a market cap of $48.82 billion, a P/E ratio of 20.03, a price-to-earnings-growth ratio of 1.33 and a beta of 1.66.

United Rentals (NYSE:URI - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The construction company reported $11.09 earnings per share 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 for the quarter, compared to analyst estimates of $4.24 billion. During the same quarter in the prior year, the business earned $11.59 earnings per share. United Rentals's revenue was up 2.8% on a year-over-year basis. On average, sell-side analysts forecast that United Rentals, Inc. will post 44.8 earnings per share for the current year.

United Rentals Increases Dividend

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

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

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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