United Rentals (NYSE:URI) Stock Price Down 5.5% - Here's Why

Key Points

• United Rentals shares fell 5.5% to about $986, with trading volume roughly 61% below the average session volume.
• Analyst sentiment remains positive, with 15 Buy ratings, two Holds and one Sell; the consensus rating is “Moderate Buy” with an average price target of $1,243.62.
• The company recently exceeded quarterly expectations, reporting $12.76 in EPS and $4.41 billion in revenue, while revenue grew 11.8% year over year. United Rentals also pays a quarterly dividend of $1.97 per share, yielding approximately 0.8%.

United Rentals, Inc. (NYSE:URI - Get Free Report) shares traded down 5.5% on Tuesday. The stock traded as low as $973.29 and last traded at $986.2140. 217,997 shares changed hands during trading, a decline of 61% from the average session volume of 559,318 shares. The stock had previously closed at $1,043.92.

Wall Street Analyst Weigh In

Several equities analysts have commented on URI shares. Citigroup reissued a "buy" rating on shares of United Rentals in a report on Monday, September 14th. Wells Fargo & Company upped their price target on shares of United Rentals from $1,245.00 to $1,355.00 and gave the stock an "overweight" rating in a report on Friday, July 24th. Bank of America increased their price target on shares of United Rentals from $1,195.00 to $1,300.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. Royal Bank Of Canada reissued an "outperform" rating and issued a $1,323.00 price objective on shares of United Rentals in a research note on Thursday, September 24th. Finally, UBS Group set a $1,170.00 target price on United Rentals in a research note on Thursday, September 10th. Fifteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $1,243.62.

United Rentals Trading Down 5.1%

The company has a market capitalization of $61.68 billion, a price-to-earnings ratio of 23.80, a P/E/G ratio of 1.54 and a beta of 1.79. The company has a current ratio of 0.76, a quick ratio of 0.70 and a debt-to-equity ratio of 1.38. The business's 50 day moving average price is $1,066.58 and its two-hundred day moving average price is $980.96.

United Rentals (NYSE:URI - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The construction company reported $12.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.53 by $1.23. The business had revenue of $4.41 billion during the quarter, compared to analysts' expectations of $4.22 billion. United Rentals had a net margin of 15.67% and a return on equity of 31.72%. The firm's quarterly revenue was up 11.8% compared to the same quarter last year. During the same period in the prior year, the company earned $10.47 EPS. On average, equities analysts predict that United Rentals, Inc. will post 48.7 earnings per share for the current fiscal year.

United Rentals Announces Dividend

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

Insider Buying and Selling at United Rentals

In other United Rentals news, EVP William Grace sold 1,500 shares of the stock in a transaction dated 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 transaction, the executive vice president directly owned 6,062 shares in the company, valued at approximately $6,869,155.30. This trade represents a 19.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.47% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On United Rentals

Large investors have recently modified their holdings of the business. QRG Capital Management Inc. raised its position in United Rentals by 9.2% during the 2nd quarter. QRG Capital Management Inc. now owns 3,818 shares of the construction company's stock worth $4,325,000 after purchasing an additional 322 shares during the last quarter. Envestnet Portfolio Solutions Inc. grew its position in shares of United Rentals by 62.3% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 946 shares of the construction company's stock valued at $1,072,000 after buying an additional 363 shares during the last quarter. State Street Corp increased its stake in shares of United Rentals by 1.1% in the second quarter. State Street Corp now owns 2,993,837 shares of the construction company's stock valued at $3,391,688,000 after buying an additional 32,238 shares during the period. Bouchey Financial Group Ltd. lifted its stake in shares of United Rentals by 4.4% in the second quarter. Bouchey Financial Group Ltd. now owns 379 shares of the construction company's stock worth $429,000 after acquiring an additional 16 shares during the period. Finally, Capstone Financial Advisors Inc. bought a new stake in United Rentals in the second quarter valued at approximately $276,000. Institutional investors own 96.26% of the company's stock.

United Rentals Company Profile

United Rentals, Inc is an equipment rental company headquartered in Stamford, Connecticut. The company provides construction, industrial, commercial, and homeowner customers with access to equipment without requiring them to purchase and maintain their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trench safety products, power-generation and climate-control equipment, pumps, tools, and general construction equipment. United Rentals also provides specialty services such as mobile storage, fluid solutions, power and HVAC support, and project-based equipment management.

Founded in 1997, United Rentals has grown through organic expansion and acquisitions into a large equipment-rental network serving customers primarily in the United States and Canada, with additional operations in Europe and Australia.

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