United Rentals (NYSE:URI) Reaches New 52-Week High Following Analyst Upgrade

Key Points

• United Rentals shares hit a new 52-week high of $899.46 after Morgan Stanley upgraded their price target from $702.00 to $955.00 and issued an overweight rating.
• The firm's quarterly earnings report showed $10.47 EPS, slightly below analysts' estimates, but revenue increased by 4.5% year-over-year to $3.94 billion.
• United Rentals declared a quarterly dividend of $1.79, with an annualized yield of 0.80%, scheduled for payment on August 27th.

United Rentals, Inc. (NYSE:URI - Get Free Report) shares reached a new 52-week high on Monday after Morgan Stanley raised their price target on the stock from $702.00 to $955.00. Morgan Stanley currently has an overweight rating on the stock. United Rentals traded as high as $899.46 and last traded at $895.80, with a volume of 313856 shares changing hands. The stock had previously closed at $890.00.

A number of other brokerages also recently issued reports on URI. Robert W. Baird increased their price target on shares of United Rentals from $535.00 to $571.00 and gave the stock a "neutral" rating in a report on Friday, April 25th. UBS Group increased their price target on shares of United Rentals from $780.00 to $835.00 and gave the stock a "neutral" rating in a report on Thursday. Cfra Research raised shares of United Rentals to a "strong-buy" rating in a report on Friday, April 25th. Redburn Atlantic downgraded shares of United Rentals from a "buy" rating to a "neutral" rating and set a $760.00 price target on the stock. in a report on Friday, June 13th. Finally, Bank of America raised their target price on shares of United Rentals from $895.00 to $900.00 and gave the company a "buy" rating in a research note on Thursday. One research analyst has rated the stock with a sell rating, five have issued a hold rating, nine have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $830.71.

Insider Activity

In related news, VP Andrew B. Limoges sold 708 shares of United Rentals stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $705.86, for a total value of $499,748.88. Following the completion of the sale, the vice president directly owned 1,921 shares in the company, valued at approximately $1,355,957.06. This trade represents a 26.93% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Michael D. Durand sold 1,100 shares of United Rentals stock in a transaction dated Tuesday, April 29th. The stock was sold at an average price of $626.28, for a total value of $688,908.00. Following the completion of the sale, the executive vice president owned 8,748 shares of the company's stock, valued at $5,478,697.44. The trade was a 11.17% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.51% of the stock is owned by insiders.

Institutional Investors Weigh In On United Rentals

A number of large investors have recently made changes to their positions in the company. TD Asset Management Inc grew its stake in shares of United Rentals by 4.1% during the 2nd quarter. TD Asset Management Inc now owns 291,034 shares of the construction company's stock valued at $219,265,000 after purchasing an additional 11,508 shares during the period. Wilmington Savings Fund Society FSB grew its stake in shares of United Rentals by 3.8% during the 2nd quarter. Wilmington Savings Fund Society FSB now owns 2,822 shares of the construction company's stock valued at $2,126,000 after purchasing an additional 102 shares during the period. Axxcess Wealth Management LLC bought a new position in shares of United Rentals during the 2nd quarter valued at approximately $309,000. Cornerstone Wealth Group LLC bought a new position in shares of United Rentals during the 2nd quarter valued at approximately $271,000. Finally, NorthRock Partners LLC grew its stake in shares of United Rentals by 1.7% during the 2nd quarter. NorthRock Partners LLC now owns 1,085 shares of the construction company's stock valued at $817,000 after acquiring an additional 18 shares during the period. 96.26% of the stock is currently owned by institutional investors.

United Rentals Trading Up 0.9%

The stock has a 50 day moving average of $747.81 and a 200-day moving average of $694.25. The company has a market capitalization of $57.75 billion, a P/E ratio of 23.19, a P/E/G ratio of 2.06 and a beta of 1.69. The company has a current ratio of 0.86, a quick ratio of 0.80 and a debt-to-equity ratio of 1.34.

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

United Rentals Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Wednesday, August 13th will be issued a $1.79 dividend. The ex-dividend date of this dividend is Wednesday, August 13th. This represents a $7.16 dividend on an annualized basis and a yield of 0.80%. United Rentals's dividend payout ratio is presently 18.52%.

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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