United Rentals (NYSE:URI) Hits New 52-Week High - Still a Buy?

Key Points

• United Rentals reached a new 52-week high of $1,179.62, with shares last trading near $1,178 and substantially above their 50-day and 200-day moving averages.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $1,288.19; several firms recently raised their targets.
• The company exceeded quarterly earnings and revenue estimates, reporting $15.55 in EPS and $4.89 billion in revenue, while announcing a quarterly dividend of $1.97 per share and attracting significant institutional ownership.

United Rentals, Inc. (NYSE:URI - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday. The company traded as high as $1,179.62 and last traded at $1,178.0450, with a volume of 263,586 shares trading hands. The stock had previously closed at $1,121.90.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on URI shares. Royal Bank Of Canada raised their price target on shares of United Rentals from $1,323.00 to $1,392.00 and gave the stock an "outperform" rating in a research note on Friday. Citigroup reissued a "buy" rating on shares of United Rentals in a research report on Monday, September 14th. Robert W. Baird set a $1,310.00 price objective on shares of United Rentals in a research note on Friday. Bank of America restated a "buy" rating on shares of United Rentals in a research report on Thursday, October 22nd. Finally, Wells Fargo & Company lifted their target price on shares of United Rentals from $1,245.00 to $1,355.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, United Rentals has a consensus rating of "Moderate Buy" and an average target price of $1,288.19.

United Rentals Price Performance

The business has a fifty day moving average price of $1,044.92 and a 200 day moving average price of $965.63. The company has a debt-to-equity ratio of 1.35, a current ratio of 0.80 and a quick ratio of 0.73. The company has a market capitalization of $72.52 billion, a price-to-earnings ratio of 25.77, a price-to-earnings-growth ratio of 1.59 and a beta of 1.83.

United Rentals (NYSE:URI - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The construction company reported $15.55 earnings per share for the quarter, beating the consensus estimate of $13.97 by $1.58. United Rentals had a net margin of 16.33% and a return on equity of 33.47%. The firm had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.71 billion. During the same quarter last year, the firm earned $11.70 earnings per share. The company's revenue for the quarter was up 15.7% on a year-over-year basis. On average, research analysts expect that United Rentals, Inc. will post 49.65 earnings per share for the current fiscal year.

United Rentals Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Wednesday, November 11th will be issued a dividend of $1.97 per share. This represents a $7.88 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Tuesday, November 10th. United Rentals's payout ratio is currently 17.32%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in United Rentals in the second quarter valued at about $5,816,326,000. State Street Corp boosted its holdings in United Rentals by 1.1% during the second quarter. State Street Corp now owns 2,993,837 shares of the construction company's stock worth $3,391,688,000 after buying an additional 32,238 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of United Rentals during the 2nd quarter worth about $944,196,000. The Manufacturers Life Insurance Company acquired a new position in shares of United Rentals during the 2nd quarter worth about $716,129,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of United Rentals by 15.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 539,121 shares of the construction company's stock valued at $610,765,000 after acquiring an additional 74,008 shares during the last quarter. 96.26% of the stock is currently owned by institutional investors.

United Rentals Company Profile

United Rentals, Inc is an equipment rental company serving construction, industrial, infrastructure, utilities, government and other commercial customers. The company provides access to equipment and related services through a network of rental locations, helping customers manage projects without purchasing and maintaining all of the equipment they need.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, general construction tools, trucks and trailers, and light-duty equipment.

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