United Rentals (NYSE:URI) Price Target Raised to $1,165.00

Key Points

• Morgan Stanley raised its price target on United Rentals to $1,165 from $1,030 and kept an overweight rating, implying about 10.6% upside from the prior close.
• Other analysts have also turned more bullish, with several firms lifting targets and the stock now carrying a Moderate Buy consensus and an average price target of $1,140.
• United Rentals shares were down on the day despite the higher target, and the company recently reported Q1 earnings and revenue below expectations even though revenue still rose 7.2% year over year.

United Rentals (NYSE:URI - Get Free Report) had its price target hoisted by research analysts at Morgan Stanley from $1,030.00 to $1,165.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the construction company's stock. Morgan Stanley's target price points to a potential upside of 10.61% from the company's previous close.

A number of other brokerages have also commented on URI. Truist Financial lifted their price target on United Rentals from $1,209.00 to $1,421.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. UBS Group increased their price target on United Rentals from $1,145.00 to $1,300.00 and gave the company a "buy" rating in a research note on Wednesday, July 1st. KeyCorp raised their price objective on United Rentals from $1,150.00 to $1,250.00 and gave the stock an "overweight" rating in a research report on Thursday, June 25th. Sanford C. Bernstein set a $903.00 target price on United Rentals and gave the company an "outperform" rating in a report on Thursday, April 9th. Finally, Evercore restated an "outperform" rating and set a $1,101.00 price target on shares of United Rentals in a report on Monday, May 11th. Fourteen equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $1,140.00.

United Rentals Price Performance

United Rentals stock traded down $18.55 during mid-day trading on Friday, reaching $1,053.27. 186,379 shares of the company were exchanged, compared to its average volume of 594,725. The firm has a market cap of $65.99 billion, a PE ratio of 26.89, a PEG ratio of 1.67 and a beta of 1.79. The company has a fifty day simple moving average of $1,039.15 and a 200-day simple moving average of $909.48. United Rentals has a 12 month low of $701.59 and a 12 month high of $1,143.69. The company has a debt-to-equity ratio of 1.37, a current ratio of 0.80 and a quick ratio of 0.74.

United Rentals (NYSE:URI - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The construction company reported $9.71 earnings per share for the quarter, missing analysts' consensus estimates of $11.47 by ($1.76). The firm had revenue of $3.98 billion for the quarter, compared to the consensus estimate of $4.20 billion. United Rentals had a return on equity of 30.56% and a net margin of 15.32%.The business's revenue was up 7.2% on a year-over-year basis. During the same period last year, the company posted $8.86 EPS. As a group, equities research analysts expect that United Rentals will post 46.77 earnings per share for the current fiscal year.

Insider Activity at United Rentals

In other news, SVP Joli L. Gross sold 306 shares of the firm's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $954.99, for a total value of $292,226.94. Following the completion of the sale, the senior vice president directly owned 5,738 shares in the company, valued at $5,479,732.62. This trade represents a 5.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Andrew B. Limoges sold 548 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $977.86, for a total value of $535,867.28. Following the transaction, the vice president directly owned 1,865 shares in the company, valued at approximately $1,823,708.90. This trade represents a 22.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 26,088 shares of company stock valued at $25,628,877. Company insiders own 0.47% of the company's stock.

Institutional Investors Weigh In On United Rentals

A number of hedge funds have recently added to or reduced their stakes in the company. Cardinal Capital Management Inc. increased its stake in United Rentals by 11.6% during the 2nd quarter. Cardinal Capital Management Inc. now owns 49,644 shares of the construction company's stock valued at $56,241,000 after purchasing an additional 5,142 shares in the last quarter. Diversified Management Inc. purchased a new position in shares of United Rentals during the second quarter valued at approximately $294,000. Generali Investments Management Co LLC grew its holdings in United Rentals by 70.3% during the second quarter. Generali Investments Management Co LLC now owns 264 shares of the construction company's stock worth $299,000 after buying an additional 109 shares in the last quarter. E. Ohman J or Asset Management AB grew its holdings in United Rentals by 7.2% during the second quarter. E. Ohman J or Asset Management AB now owns 3,038 shares of the construction company's stock worth $3,442,000 after buying an additional 205 shares in the last quarter. Finally, Redhawk Wealth Advisors Inc. purchased a new stake in United Rentals in the 2nd quarter valued at $2,171,000. Institutional investors and hedge funds own 96.26% of the company's stock.

About United Rentals

United Rentals, Inc NYSE: URI is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.

The company's product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.

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