Sunbelt Rentals Holdings, Inc. Common Stock (NYSE:SUNB) Stock Short Interest Declines 58.0%

Key Points

• Short interest plunged 58% to 8.6 million shares as of September 15, from 20.5 million at the end of August. Short interest now represents 2.1% of shares outstanding, with a days-to-cover ratio of 0.9.
• Analyst sentiment is mixed but improving: nine analysts rate SUNB a Buy, four Hold, and two Sell, producing an average rating of “Hold” and an average price target of $87.33 versus a recent price of $74.91.
• The company exceeded quarterly earnings expectations, reporting $1.18 in EPS and $3.12 billion in revenue, up 11.2% year over year. However, its quarterly dividend was reduced to $0.30 from $0.75, implying a 1.6% annualized yield.

Sunbelt Rentals Holdings, Inc. Common Stock (NYSE:SUNB - Get Free Report) was the target of a significant decrease in short interest during the month of September. As of September 15th, there was short interest totaling 8,617,012 shares, a decrease of 58.0% from the August 31st total of 20,515,658 shares. Based on an average trading volume of 9,653,303 shares, the days-to-cover ratio is presently 0.9 days. Currently, 2.1% of the company's stock are sold short.

Wall Street Analyst Weigh In

A number of brokerages have commented on SUNB. Citigroup lowered their target price on Sunbelt Rentals Holdings, Inc. Common Stock to $90.00 and set a "buy" rating on the stock in a research note on Wednesday, June 24th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $80.00 price target on shares of Sunbelt Rentals Holdings, Inc. Common Stock in a research note on Thursday, September 17th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Sunbelt Rentals Holdings, Inc. Common Stock in a research note on Tuesday, June 30th. Barclays increased their price objective on Sunbelt Rentals Holdings, Inc. Common Stock from $82.00 to $90.00 and gave the stock an "overweight" rating in a report on Monday, June 22nd. Finally, The Goldman Sachs Group raised shares of Sunbelt Rentals Holdings, Inc. Common Stock from a "neutral" rating to a "buy" rating and raised their price objective for the company from $78.00 to $93.00 in a research report on Wednesday, September 16th. Nine analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Sunbelt Rentals Holdings, Inc. Common Stock presently has an average rating of "Hold" and an average target price of $87.33.

Insider Buying and Selling at Sunbelt Rentals Holdings, Inc. Common Stock

In related news, COO John Washburn sold 3,351 shares of the stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $70.00, for a total transaction of $234,570.00. Following the completion of the sale, the chief operating officer directly owned 72,394 shares in the company, valued at approximately $5,067,580. This trade represents a 4.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.16% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. State Street Corp acquired a new stake in shares of Sunbelt Rentals Holdings, Inc. Common Stock in the second quarter valued at about $440,999,000. Broad Run Investment Management LLC bought a new position in shares of Sunbelt Rentals Holdings, Inc. Common Stock in the second quarter worth about $51,353,000. Anchor Capital Advisors LLC bought a new position in shares of Sunbelt Rentals Holdings, Inc. Common Stock in the second quarter worth about $44,923,000. Envestnet Asset Management Inc. acquired a new position in shares of Sunbelt Rentals Holdings, Inc. Common Stock during the 2nd quarter worth about $26,298,000. Finally, Allianz Asset Management GmbH acquired a new position in shares of Sunbelt Rentals Holdings, Inc. Common Stock during the 2nd quarter worth about $22,082,000.

Sunbelt Rentals Holdings, Inc. Common Stock Stock Performance

SUNB stock traded down $0.15 during midday trading on Monday, hitting $74.91. 4,701,840 shares of the company traded hands, compared to its average volume of 4,313,912. Sunbelt Rentals Holdings, Inc. Common Stock has a twelve month low of $61.03 and a twelve month high of $86.68. The company has a quick ratio of 0.87, a current ratio of 0.94 and a debt-to-equity ratio of 1.08. The business has a 50 day simple moving average of $74.86 and a 200-day simple moving average of $74.01. The stock has a market capitalization of $30.70 billion and a price-to-earnings ratio of 39.01.

Sunbelt Rentals Holdings, Inc. Common Stock (NYSE:SUNB - Get Free Report) last released its quarterly earnings results on Wednesday, September 9th. The company reported $1.18 EPS for the quarter, beating analysts' consensus estimates of $0.99 by $0.19. The firm had revenue of $3.12 billion during the quarter. The business's revenue for the quarter was up 11.2% on a year-over-year basis. As a group, equities research analysts predict that Sunbelt Rentals Holdings, Inc. Common Stock will post 4.21 earnings per share for the current year.

Sunbelt Rentals Holdings, Inc. Common Stock Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Friday, September 18th will be issued a $0.30 dividend. This is a drop from Sunbelt Rentals Holdings, Inc. Common Stock's previous quarterly dividend of $0.75. The ex-dividend date is Friday, September 18th. This represents a $1.20 annualized dividend and a yield of 1.6%. Sunbelt Rentals Holdings, Inc. Common Stock's payout ratio is 62.50%.

About Sunbelt Rentals Holdings, Inc. Common Stock

Sunbelt Rentals Holdings, Inc is an equipment rental company that provides tools, machinery and related services to construction, industrial, commercial, infrastructure, government and residential customers. Its rental fleet includes aerial work platforms, earthmoving and material-handling equipment, general tools, power-generation equipment, pumps, heating and cooling systems, and temporary structures.

The company also provides specialized solutions such as trench safety, climate control, event equipment, traffic management and temporary power.

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