Wellington Management Group LLP Acquires New Position in United Rentals, Inc. $URI

Key Points

• Wellington Management Group acquired 11.1 million United Rentals shares worth approximately $806.8 million, giving it an 17.77% stake. Institutional investors collectively own 96.26% of the company.
• United Rentals exceeded quarterly expectations, reporting $12.76 in EPS and $4.41 billion in revenue, with revenue up 11.8% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $1,246.19.
• The company declared a quarterly dividend of $1.97 per share, equivalent to $7.88 annually and a 0.8% yield, while an executive sold 1,500 shares valued at approximately $1.7 million.

Wellington Management Group LLP acquired a new stake in United Rentals, Inc. (NYSE:URI - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 11,057,926 shares of the construction company's stock, valued at approximately $806,796,000. Wellington Management Group LLP owned about 17.77% of United Rentals at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of URI. BlackRock Inc. acquired a new position in shares of United Rentals during the 2nd quarter worth approximately $5,816,326,000. Capital World Investors increased its holdings in shares of United Rentals by 1.1% in the fourth quarter. Capital World Investors now owns 2,708,877 shares of the construction company's stock valued at $2,192,357,000 after purchasing an additional 30,263 shares during the last quarter. Franklin Resources Inc. lifted its position in United Rentals by 2.2% during the fourth quarter. Franklin Resources Inc. now owns 1,343,981 shares of the construction company's stock worth $1,087,711,000 after buying an additional 28,895 shares in the last quarter. Norges Bank purchased a new position in United Rentals during the fourth quarter worth approximately $978,017,000. Finally, Bank of America Corp DE acquired a new position in United Rentals during the second quarter worth $944,196,000. 96.26% of the stock is owned by hedge funds and other institutional investors.

United Rentals Price Performance

United Rentals stock opened at $1,030.64 on Friday. The company's 50 day simple moving average is $1,097.31 and its 200-day simple moving average is $957.16. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.70 and a current ratio of 0.76. United Rentals, Inc. has a 1 year low of $701.59 and a 1 year high of $1,179.18. The company has a market capitalization of $64.15 billion, a price-to-earnings ratio of 24.75, a price-to-earnings-growth ratio of 1.33 and a beta of 1.80.

United Rentals (NYSE:URI - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The construction company reported $12.76 earnings per share for the quarter, topping analysts' consensus estimates of $11.53 by $1.23. United Rentals had a net margin of 15.67% and a return on equity of 31.72%. The firm had revenue of $4.41 billion during the quarter, compared to analysts' expectations of $4.22 billion. During the same quarter last year, the company posted $10.47 EPS. The firm's quarterly revenue was up 11.8% on a year-over-year basis. As a group, equities research analysts expect that United Rentals, Inc. will post 48.55 earnings per share for the current year.

United Rentals Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th were given a dividend of $1.97 per share. This represents a $7.88 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Wednesday, August 12th. United Rentals's dividend payout ratio (DPR) is currently 18.92%.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on URI shares. Argus reaffirmed a "buy" rating and issued a $1,250.00 target price on shares of United Rentals in a research note on Tuesday, August 4th. Weiss Ratings raised shares of United Rentals from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, July 23rd. Robert W. Baird set a $1,300.00 price objective on shares of United Rentals in a research report on Friday, July 24th. UBS Group lifted their target price on shares of United Rentals from $1,300.00 to $1,350.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Finally, Wall Street Zen raised shares of United Rentals from a "hold" rating to a "buy" rating in a research note on Saturday, July 25th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, United Rentals presently has a consensus rating of "Moderate Buy" and an average price target of $1,246.19.

Insider Buying and Selling at United Rentals

In other news, EVP William E. Grace sold 1,500 shares of United Rentals stock in a transaction on Friday, July 24th. The stock was sold at an average price of $1,133.15, for a total value of $1,699,725.00. Following the completion of the sale, the executive vice president directly owned 6,062 shares of the company's stock, valued at approximately $6,869,155.30. The trade was a 19.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.47% of the company's stock.

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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