V Square Quantitative Management LLC Makes New $1.47 Million Investment in United Rentals, Inc. $URI

Key Points

• V Square Quantitative Management LLC opened a new position in United Rentals, buying 1,821 shares worth about $1.47 million in Q4, as institutional investors now own roughly 96.26% of the stock.
• United Rentals missed Q4 estimates—EPS $11.09 vs. $11.86 expected and revenue $4.21B vs. $4.24B—but its board authorized a $5.0 billion share buyback (up to ~8.7% of outstanding shares).
• Two executive VPs sold shares in early February (Michael D. Durand sold 2,490 shares for ~$1.97M; William E. Grace sold 1,498 shares for ~$1.18M), leaving corporate insiders with about 0.53% ownership.

V Square Quantitative Management LLC purchased a new position in United Rentals, Inc. (NYSE:URI - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,821 shares of the construction company's stock, valued at approximately $1,474,000.

Other hedge funds have also modified their holdings of the company. TD Waterhouse Canada Inc. boosted its position in shares of United Rentals by 73.3% during the third quarter. TD Waterhouse Canada Inc. now owns 5,740 shares of the construction company's stock worth $5,533,000 after acquiring an additional 2,428 shares during the last quarter. National Pension Service boosted its position in shares of United Rentals by 4.5% during the third quarter. National Pension Service now owns 103,146 shares of the construction company's stock worth $98,469,000 after acquiring an additional 4,415 shares during the last quarter. North Growth Management Ltd. boosted its position in shares of United Rentals by 22.2% during the third quarter. North Growth Management Ltd. now owns 11,000 shares of the construction company's stock worth $10,189,000 after acquiring an additional 2,000 shares during the last quarter. HB Wealth Management LLC boosted its position in shares of United Rentals by 37.2% during the third quarter. HB Wealth Management LLC now owns 6,608 shares of the construction company's stock worth $6,308,000 after acquiring an additional 1,790 shares during the last quarter. Finally, Independent Advisor Alliance boosted its position in shares of United Rentals by 11.6% during the third quarter. Independent Advisor Alliance now owns 9,108 shares of the construction company's stock worth $8,695,000 after acquiring an additional 947 shares during the last quarter. 96.26% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, EVP Michael D. Durand sold 2,490 shares of the company's stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $791.14, for a total transaction of $1,969,938.60. Following the sale, the executive vice president owned 7,458 shares of the company's stock, valued at $5,900,322.12. This represents a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP William E. Grace sold 1,498 shares of the company's stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total transaction of $1,184,753.22. Following the sale, the executive vice president directly owned 6,872 shares in the company, valued at approximately $5,434,996.08. The trade was a 17.90% decrease in their position. The SEC filing for this sale provides additional information. 0.53% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

URI has been the subject of a number of research reports. Wells Fargo & Company upped their target price on shares of United Rentals from $995.00 to $1,071.00 and gave the stock an "overweight" rating in a research report on Friday, January 23rd. KeyCorp set a $950.00 target price on shares of United Rentals in a research report on Friday, January 30th. UBS Group upgraded shares of United Rentals from a "neutral" rating to a "buy" rating and set a $1,025.00 target price for the company in a research report on Sunday, January 4th. Citigroup dropped their target price on shares of United Rentals from $1,090.00 to $950.00 and set a "buy" rating for the company in a research report on Monday, February 2nd. Finally, JPMorgan Chase & Co. dropped their target price on shares of United Rentals from $1,150.00 to $970.00 and set an "overweight" rating for the company in a research report on Friday, January 30th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $925.59.

United Rentals Price Performance

United Rentals stock opened at $761.88 on Thursday. The company has a market cap of $47.91 billion, a price-to-earnings ratio of 19.70, a PEG ratio of 1.18 and a beta of 1.68. The firm's fifty day moving average is $801.13 and its 200 day moving average is $853.48. The company has a quick ratio of 0.88, a current ratio of 0.94 and a debt-to-equity ratio of 1.41. United Rentals, Inc. has a 52-week low of $533.45 and a 52-week high of $1,021.47.

United Rentals (NYSE:URI - Get Free Report) last released its quarterly 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). The business had revenue of $4.21 billion for 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 earned $11.59 EPS. Sell-side analysts forecast that United Rentals, Inc. will post 44.8 EPS for the current fiscal year.

United Rentals announced that its Board of Directors has authorized a stock buyback plan on Wednesday, January 28th that permits the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the construction company to buy up to 8.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

United Rentals Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, February 25th. Investors of record on Wednesday, February 11th were paid a dividend of $1.97 per share. 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 payout ratio is currently 20.37%.

United Rentals 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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