Insider Selling: United Rentals (NYSE:URI) SVP Sells 306 Shares of Stock

Key Points

• Insider sale: SVP Joli Gross sold 306 shares of United Rentals (NYSE:URI) on April 27 at an average price of $954.99 for proceeds of $292,226.94, cutting her holding by 5.06% to 5,738 shares valued at about $5.48M.
• Q1 miss and stock reaction: United Rentals reported $9.71 EPS (vs. $11.47 expected) and $3.99B revenue (vs. $4.20B expected); the shares traded down roughly 1.5% to $959.42 on the report.
• Capital return and payout: The board authorized a $5.0B share buyback (up to ~8.7% of shares) and declared a quarterly dividend of $1.97 ($7.88 annualized, ~0.8% yield; ex-dividend May 13).

United Rentals, Inc. (NYSE:URI - Get Free Report) SVP Joli Gross sold 306 shares of the stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $954.99, for a total value of $292,226.94. Following the sale, the senior vice president directly owned 5,738 shares of the company's stock, valued at approximately $5,479,732.62. This trade represents a 5.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link.

United Rentals Trading Down 1.5%

Shares of NYSE:URI traded down $14.99 during trading on Monday, reaching $959.42. 528,899 shares of the company traded hands, compared to its average volume of 666,387. The firm has a market capitalization of $60.11 billion, a price-to-earnings ratio of 24.47, a P/E/G ratio of 1.56 and a beta of 1.68. United Rentals, Inc. has a 52-week low of $611.93 and a 52-week high of $1,021.47. The company has a current ratio of 0.80, a quick ratio of 0.74 and a debt-to-equity ratio of 1.37. The business's fifty day moving average is $795.43 and its 200-day moving average is $840.56.

United Rentals (NYSE:URI - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The construction company reported $9.71 earnings per share for the quarter, missing analysts' consensus estimates of $11.47 by ($1.76). The company had revenue of $3.99 billion for the quarter, compared to analysts' expectations of $4.20 billion. United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The business's revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period last year, the company posted $8.86 EPS. As a group, analysts forecast that United Rentals, Inc. will post 46.68 EPS for the current year.

United Rentals Dividend Announcement

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

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

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on URI. Royal Bank Of Canada upped their target price on United Rentals from $1,041.00 to $1,119.00 and gave the company an "outperform" rating in a report on Friday. Morgan Stanley restated an "overweight" rating and set a $1,030.00 target price on shares of United Rentals in a report on Friday. Citigroup upped their target price on United Rentals from $950.00 to $1,130.00 and gave the company a "buy" rating in a report on Friday. UBS Group upgraded United Rentals from a "neutral" rating to a "buy" rating and set a $1,025.00 target price for the company in a report on Sunday, January 4th. Finally, JPMorgan Chase & Co. upped their target price on United Rentals from $850.00 to $1,050.00 and gave the company an "overweight" rating in a report on Friday. Thirteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $986.35.

Hedge Funds Weigh In On United Rentals

A number of institutional investors have recently added to or reduced their stakes in the company. Capital International Investors raised 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 worth $3,247,762,000 after purchasing an additional 631,484 shares in the last quarter. Capital World Investors raised its holdings in United Rentals by 1.1% in the fourth quarter. Capital World Investors now owns 2,708,877 shares of the construction company's stock worth $2,192,357,000 after purchasing an additional 30,263 shares in the last quarter. Franklin Resources Inc. raised its holdings in United Rentals by 2.2% in the fourth quarter. Franklin Resources Inc. now owns 1,343,981 shares of the construction company's stock worth $1,087,711,000 after purchasing an additional 28,895 shares in the last quarter. Norges Bank bought a new position in United Rentals in the fourth quarter worth $978,017,000. Finally, Alliancebernstein L.P. raised its holdings in United Rentals by 5.6% in the third quarter. Alliancebernstein L.P. now owns 1,088,209 shares of the construction company's stock worth $1,038,870,000 after purchasing an additional 57,977 shares in the last quarter. Institutional investors own 96.26% of the company's stock.

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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