United Rentals (NYSE:URI) Shares Gap Up After Strong Earnings

United Rentals, Inc. (NYSE:URI - Get Free Report) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $655.19, but opened at $680.00. United Rentals shares last traded at $668.57, with a volume of 339,574 shares traded.

The construction company reported $9.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.35 by $0.80. United Rentals had a return on equity of 36.80% and a net margin of 16.91%. The firm had revenue of $3.49 billion for the quarter, compared to analysts' expectations of $3.44 billion. During the same quarter in the previous year, the firm posted $7.95 EPS. The firm's revenue for the quarter was up 6.1% on a year-over-year basis.

United Rentals Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 22nd. Stockholders of record on Wednesday, May 8th will be issued a dividend of $1.63 per share. The ex-dividend date of this dividend is Tuesday, May 7th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.94%. United Rentals's payout ratio is 18.44%.

United Rentals declared that its board has authorized a share repurchase plan on Wednesday, January 24th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the construction company to purchase up to 3.8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

URI has been the topic of several research analyst reports. Truist Financial initiated coverage on shares of United Rentals in a research report on Thursday, March 14th. They set a "buy" rating and a $793.00 price target on the stock. The Goldman Sachs Group raised their price objective on shares of United Rentals from $718.00 to $790.00 and gave the stock a "buy" rating in a research note on Tuesday, April 16th. Barclays lifted their target price on shares of United Rentals from $325.00 to $400.00 and gave the company an "underweight" rating in a research note on Friday, January 26th. Evercore ISI lifted their target price on shares of United Rentals from $575.00 to $740.00 and gave the stock an "outperform" rating in a report on Tuesday, February 20th. Finally, Wells Fargo & Company raised their price target on shares of United Rentals from $630.00 to $710.00 and gave the stock an "overweight" rating in a research report on Friday, January 26th. Three research analysts have rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, United Rentals has a consensus rating of "Hold" and a consensus price target of $589.21.

Insiders Place Their Bets

In related news, CFO William E. Grace sold 775 shares of the stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $655.62, for a total value of $508,105.50. Following the transaction, the chief financial officer now owns 6,323 shares of the company's stock, valued at $4,145,485.26. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.53% of the company's stock.

Institutional Investors Weigh In On United Rentals

Institutional investors and hedge funds have recently made changes to their positions in the company. OFI Invest Asset Management purchased a new position in shares of United Rentals during the 3rd quarter valued at $25,000. First Financial Corp IN bought a new position in shares of United Rentals during the first quarter valued at approximately $25,000. AdvisorNet Financial Inc boosted its stake in shares of United Rentals by 71.4% during the fourth quarter. AdvisorNet Financial Inc now owns 48 shares of the construction company's stock valued at $28,000 after purchasing an additional 20 shares in the last quarter. Rise Advisors LLC acquired a new stake in United Rentals in the first quarter valued at approximately $28,000. Finally, NBC Securities Inc. acquired a new stake in United Rentals in the third quarter valued at approximately $29,000. Institutional investors own 96.26% of the company's stock.

United Rentals Trading Up 5.5 %

The company's 50 day simple moving average is $680.37 and its two-hundred day simple moving average is $576.87. The company has a market capitalization of $46.41 billion, a price-to-earnings ratio of 19.55, a P/E/G ratio of 2.29 and a beta of 1.84. The company has a quick ratio of 0.75, a current ratio of 0.81 and a debt-to-equity ratio of 1.24.

United Rentals Company Profile

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.