United Rentals, Inc. $URI Shares Purchased by Franklin Resources Inc.

Key Points

• Franklin Resources increased its stake in United Rentals by 6.8% in Q3, owning 1,315,086 shares (about 2.07%) valued at roughly $1.255 billion.
• United Rentals' board authorized a $5.0 billion share buyback (up to 8.7% of shares) and raised the quarterly dividend to $1.97 ($7.88 annualized, ~1.0% yield).
• The company missed quarterly estimates with EPS of $11.09 vs. $11.86 expected and revenue of $4.21B vs. $4.24B, shares traded down ~5.6%, and analysts' consensus is a "Moderate Buy" with an average target of $925.59.

Franklin Resources Inc. lifted its stake in United Rentals, Inc. (NYSE:URI - Free Report) by 6.8% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,315,086 shares of the construction company's stock after purchasing an additional 83,978 shares during the quarter. Franklin Resources Inc. owned about 2.07% of United Rentals worth $1,255,460,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of the stock. Quadrant Capital Group LLC increased its stake in United Rentals by 0.8% during the 3rd quarter. Quadrant Capital Group LLC now owns 1,740 shares of the construction company's stock valued at $1,661,000 after purchasing an additional 14 shares in the last quarter. Capital World Investors lifted its stake 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 during the period. Capital International Sarl lifted its stake in shares of United Rentals by 34.8% during the third quarter. Capital International Sarl now owns 9,271 shares of the construction company's stock worth $8,851,000 after buying an additional 2,393 shares during the period. Capital International Inc. CA grew its holdings in shares of United Rentals by 2,857.1% during the third quarter. Capital International Inc. CA now owns 31,138 shares of the construction company's stock valued at $29,726,000 after buying an additional 30,085 shares during the last quarter. Finally, Capital International Investors grew 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 valued at $3,247,762,000 after buying an additional 631,484 shares during the last quarter. 96.26% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, EVP William E. Grace sold 1,498 shares of United Rentals stock in a transaction that occurred 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 approximately $5,434,996.08. This trade represents a 17.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Michael D. Durand sold 2,490 shares of the business's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 7,458 shares of the company's stock, valued at $5,900,322.12. The trade was a 25.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.51% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

URI has been the subject of a number of research analyst reports. Wells Fargo & Company raised their target price 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. Weiss Ratings reiterated a "hold (c+)" rating on shares of United Rentals in a research note on Wednesday, January 21st. Royal Bank Of Canada cut their price objective on United Rentals from $1,123.00 to $1,041.00 and set an "outperform" rating on the stock in a report on Friday, January 30th. Robert W. Baird set a $970.00 price objective on United Rentals in a research note on Friday, January 30th. Finally, Citigroup decreased their target price 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. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given 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 $925.59.

United Rentals Trading Down 5.6%

NYSE URI opened at $774.86 on Wednesday. The company has a market capitalization of $48.82 billion, a PE ratio of 20.03, a P/E/G ratio of 1.33 and a beta of 1.66. The company has a fifty day moving average of $871.98 and a 200 day moving average of $884.59. United Rentals, Inc. has a 1 year low of $525.91 and a 1 year high of $1,021.47. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.94 and a quick ratio of 0.88.

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

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 outstanding shares. This buyback authorization permits the construction company to repurchase up to 8.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

United Rentals Increases Dividend

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

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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