Vaughan Nelson Investment Management L.P. Makes New Investment in United Rentals, Inc. $URI

Key Points

• Vaughan Nelson Investment Management L.P. initiated a significant investment in United Rentals, Inc. by acquiring 201,843 shares valued at approximately $152 million during the second quarter.
• Several large institutional investors, including JPMorgan Chase & Co. and Vanguard Group Inc., have increased their stakes in United Rentals, indicating strong confidence in the company.
• Analysts have raised their price targets for United Rentals, with KeyCorp and Robert W. Baird giving the stock an "overweight" and "outperform" rating, respectively, suggesting potential for further growth.

Vaughan Nelson Investment Management L.P. bought a new position in shares of United Rentals, Inc. (NYSE:URI - Free Report) during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 201,843 shares of the construction company's stock, valued at approximately $152,069,000. United Rentals makes up approximately 1.4% of Vaughan Nelson Investment Management L.P.'s portfolio, making the stock its 20th largest position. Vaughan Nelson Investment Management L.P. owned approximately 0.31% of United Rentals as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in United Rentals by 0.4% during the first quarter. Vanguard Group Inc. now owns 7,422,036 shares of the construction company's stock worth $4,651,390,000 after acquiring an additional 29,501 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in United Rentals by 98.1% during the first quarter. JPMorgan Chase & Co. now owns 1,093,805 shares of the construction company's stock worth $685,488,000 after acquiring an additional 541,579 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in United Rentals by 28.8% during the first quarter. The Manufacturers Life Insurance Company now owns 849,786 shares of the construction company's stock worth $532,561,000 after acquiring an additional 190,007 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in United Rentals by 22.3% during the first quarter. Goldman Sachs Group Inc. now owns 661,251 shares of the construction company's stock worth $414,406,000 after acquiring an additional 120,449 shares in the last quarter. Finally, Northern Trust Corp lifted its holdings in United Rentals by 0.8% during the first quarter. Northern Trust Corp now owns 661,166 shares of the construction company's stock worth $414,353,000 after acquiring an additional 5,113 shares in the last quarter. 96.26% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. KeyCorp lifted their price target on United Rentals from $1,075.00 to $1,120.00 and gave the company an "overweight" rating in a research note on Thursday, September 25th. Robert W. Baird raised United Rentals from a "neutral" rating to an "outperform" rating and lifted their price target for the company from $888.00 to $1,050.00 in a research note on Wednesday. Baird R W raised United Rentals from a "hold" rating to a "strong-buy" rating in a research note on Wednesday. Bank of America lifted their price target on United Rentals from $895.00 to $900.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. Finally, Citigroup lifted their price target on United Rentals from $1,000.00 to $1,080.00 and gave the company a "buy" rating in a research note on Tuesday, September 23rd. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $941.00.

United Rentals Price Performance

NYSE:URI opened at $982.25 on Friday. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.80 and a current ratio of 0.86. The stock's 50-day simple moving average is $927.68 and its 200 day simple moving average is $772.81. The company has a market cap of $63.20 billion, a P/E ratio of 25.40, a P/E/G ratio of 2.26 and a beta of 1.73. United Rentals, Inc. has a 52-week low of $525.91 and a 52-week high of $997.50.

United Rentals (NYSE:URI - Get Free Report) last released its earnings results on Wednesday, July 23rd. The construction company reported $10.47 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $10.54 by ($0.07). The company had revenue of $3.94 billion during the quarter, compared to analyst estimates of $3.90 billion. United Rentals had a net margin of 16.11% and a return on equity of 32.01%. United Rentals's revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $10.70 EPS. United Rentals has set its FY 2025 guidance at EPS. As a group, sell-side analysts forecast that United Rentals, Inc. will post 44.8 EPS for the current fiscal year.

United Rentals Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 27th. Shareholders of record on Wednesday, August 13th were given a dividend of $1.79 per share. This represents a $7.16 annualized dividend and a yield of 0.7%. The ex-dividend date was Wednesday, August 13th. United Rentals's payout ratio is currently 18.52%.

About United Rentals

United Rentals, Inc, through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.

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