United Rentals (NYSE:URI) Hits New 1-Year High - Still a Buy?

Key Points

• United Rentals reached a new 52-week high of $988.37, having traded significantly above its previous close of $978.22.
• Analyst ratings on United Rentals have improved, with Baird R W upgrading it to a "strong-buy" and other firms setting price targets as high as $1,128.00.
• The company reported quarterly earnings of $10.47 per share, slightly missing estimates but showing a revenue increase of 4.5% year-over-year, totaling $3.94 billion.

United Rentals, Inc. (NYSE:URI - Get Free Report) reached a new 52-week high on Friday . The company traded as high as $985.00 and last traded at $988.37, with a volume of 20959 shares. The stock had previously closed at $978.22.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Baird R W upgraded shares of United Rentals from a "hold" rating to a "strong-buy" rating in a research note on Wednesday. Barclays boosted their price objective on shares of United Rentals from $565.00 to $620.00 and gave the stock an "underweight" rating in a report on Monday, July 21st. Robert W. Baird raised United Rentals from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $888.00 to $1,050.00 in a research report on Wednesday. Sanford C. Bernstein set a $1,128.00 price target on United Rentals and gave the company an "outperform" rating in a report on Tuesday, September 23rd. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of United Rentals in a report on Saturday, September 27th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $941.00.

United Rentals Stock Performance

The company has a market cap of $63.19 billion, a P/E ratio of 25.44, a PEG ratio of 2.23 and a beta of 1.73. The stock has a fifty day moving average price of $925.81 and a two-hundred day moving average price of $770.23. The company has a debt-to-equity ratio of 1.34, a current ratio of 0.86 and a quick ratio of 0.80.

United Rentals (NYSE:URI - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The construction company reported $10.47 earnings per share for the quarter, missing analysts' consensus estimates of $10.54 by ($0.07). The company had revenue of $3.94 billion for the quarter, compared to the consensus estimate of $3.90 billion. United Rentals had a net margin of 16.11% and a return on equity of 32.01%. United Rentals's revenue for the quarter was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $10.70 earnings per share. United Rentals has set its FY 2025 guidance at EPS. On average, equities analysts forecast that United Rentals, Inc. will post 44.8 earnings per share for the current fiscal year.

United Rentals Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 27th. Investors of record on Wednesday, August 13th were paid a dividend of $1.79 per share. This represents a $7.16 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Wednesday, August 13th. United Rentals's dividend payout ratio (DPR) is currently 18.52%.

Hedge Funds Weigh In On United Rentals

Several hedge funds have recently modified their holdings of the company. Fourth Dimension Wealth LLC bought a new position in United Rentals during the first quarter valued at about $26,000. TruNorth Capital Management LLC lifted its holdings in United Rentals by 1,266.7% in the 1st quarter. TruNorth Capital Management LLC now owns 41 shares of the construction company's stock valued at $26,000 after acquiring an additional 38 shares during the last quarter. Loomis Sayles & Co. L P bought a new position in shares of United Rentals during the 2nd quarter valued at about $28,000. Flaharty Asset Management LLC acquired a new position in shares of United Rentals in the 1st quarter worth approximately $30,000. Finally, Migdal Insurance & Financial Holdings Ltd. raised its holdings in shares of United Rentals by 69.0% in the 1st quarter. Migdal Insurance & Financial Holdings Ltd. now owns 49 shares of the construction company's stock worth $31,000 after purchasing an additional 20 shares in the last quarter. 96.26% of the stock is currently owned by institutional investors and hedge funds.

About United Rentals

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.

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