United Rentals, Inc. $URI Shares Acquired by Jefferies Financial Group Inc.

Key Points

• Jefferies Financial Group sharply increased its stake in United Rentals by 3,010.4% in the fourth quarter, ending with 28,056 shares valued at about $22.7 million.
• United Rentals reported mixed quarterly results: EPS of $9.71 missed estimates of $11.47, and revenue of $3.99 billion also came in below expectations, though revenue still rose 7.2% year over year.
• Analysts remain generally constructive on the stock, with 13 Buy ratings and an average target price of $996.94, while the company also pays a quarterly dividend of $1.97 and has a $5 billion share buyback authorization.

Jefferies Financial Group Inc. grew its position in United Rentals, Inc. (NYSE:URI - Free Report) by 3,010.4% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 28,056 shares of the construction company's stock after purchasing an additional 27,154 shares during the period. Jefferies Financial Group Inc.'s holdings in United Rentals were worth $22,706,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of URI. Capital International Investors boosted its holdings in United Rentals by 22.8% in the third quarter. Capital International Investors now owns 3,402,524 shares of the construction company's stock valued at $3,247,762,000 after purchasing an additional 631,484 shares during the last quarter. TD Asset Management Inc boosted its holdings in United Rentals by 66.5% in the third quarter. TD Asset Management Inc now owns 484,450 shares of the construction company's stock valued at $462,485,000 after purchasing an additional 193,416 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its holdings in United Rentals by 3,459.3% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 196,688 shares of the construction company's stock valued at $159,184,000 after purchasing an additional 191,162 shares during the last quarter. Capital World Investors boosted its holdings in United Rentals by 6.7% in the third quarter. Capital World Investors now owns 2,678,614 shares of the construction company's stock valued at $2,557,158,000 after purchasing an additional 168,685 shares during the last quarter. Finally, Public Sector Pension Investment Board boosted its holdings in United Rentals by 3,094.3% in the third quarter. Public Sector Pension Investment Board now owns 155,273 shares of the construction company's stock valued at $148,233,000 after purchasing an additional 150,412 shares during the last quarter. 96.26% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Morgan Stanley reissued an "overweight" rating and set a $1,030.00 target price on shares of United Rentals in a research note on Friday, April 24th. Truist Financial set a $1,209.00 target price on shares of United Rentals in a research note on Friday, April 24th. Royal Bank Of Canada increased their target price on shares of United Rentals from $1,041.00 to $1,119.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. 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 note on Friday, April 24th. Finally, Barclays increased their target price 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 investment 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. According to MarketBeat.com, United Rentals currently has an average rating of "Moderate Buy" and an average target price of $996.94.

United Rentals Stock Up 0.8%

URI stock opened at $939.20 on Friday. The company has a market cap of $58.84 billion, a price-to-earnings ratio of 23.96, a PEG ratio of 1.49 and a beta of 1.83. The company has a current ratio of 0.80, a quick ratio of 0.74 and a debt-to-equity ratio of 1.37. United Rentals, Inc. has a 12 month low of $681.98 and a 12 month high of $1,021.47. The firm has a 50-day moving average of $830.99 and a two-hundred day moving average of $841.26.

United Rentals (NYSE:URI - Get Free Report) last released its quarterly earnings data 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 business had revenue of $3.99 billion during the quarter, compared to analyst estimates of $4.20 billion. United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The firm's revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $8.86 EPS. As a group, analysts forecast that United Rentals, Inc. will post 47.07 earnings per share for the current fiscal year.

United Rentals Announces Dividend

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

United Rentals announced that its Board of Directors has initiated a share buyback program on Wednesday, January 28th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the construction company to reacquire up to 8.7% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In other news, VP Andrew B. Limoges sold 548 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the vice president owned 1,865 shares in the company, valued at $1,823,708.90. This trade represents a 22.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Matthew John Flannery sold 22,768 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $984.98, for a total transaction of $22,426,024.64. Following the sale, the chief executive officer owned 99,980 shares of the company's stock, valued at $98,478,300.40. This represents a 18.55% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 26,088 shares of company stock worth $25,628,877 over the last quarter. 0.47% of the stock is currently owned by corporate insiders.

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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