United Rentals (NYSE:URI) Releases Quarterly Earnings Results, Beats Estimates By $1.23 EPS

Key Points

• United Rentals beat quarterly expectations, reporting EPS of $12.76 versus the $11.53 consensus estimate, and revenue of $4.41 billion, above the expected $4.22 billion.
• The stock rose in midday trading after the report, with URI up $20.74 to $1,034.28, near its 52-week high of $1,143.69.
• Analyst sentiment remains generally positive, with a consensus rating of Moderate Buy and an average price target of $1,140, even as a few firms recently adjusted ratings and targets upward.

United Rentals (NYSE:URI - Get Free Report) released its quarterly earnings results on Wednesday. The construction company reported $12.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.53 by $1.23, FiscalAI reports. United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The company had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.22 billion.

United Rentals Stock Performance

NYSE:URI traded up $20.74 during mid-day trading on Wednesday, reaching $1,034.28. The company's stock had a trading volume of 669,156 shares, compared to its average volume of 595,934. United Rentals has a 12-month low of $701.59 and a 12-month high of $1,143.69. The firm's fifty day moving average price is $1,043.86 and its two-hundred day moving average price is $913.86. The company has a current ratio of 0.80, a quick ratio of 0.74 and a debt-to-equity ratio of 1.37. The stock has a market cap of $64.79 billion, a P/E ratio of 26.38, a PEG ratio of 1.62 and a beta of 1.79.

Insider Activity at United Rentals

In other news, VP Andrew B. Limoges sold 548 shares of the firm's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $977.86, for a total transaction of $535,867.28. Following the sale, the vice president owned 1,865 shares of the company's stock, valued at $1,823,708.90. This trade represents a 22.71% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Matthew John Flannery sold 22,768 shares of United Rentals stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $984.98, for a total transaction of $22,426,024.64. Following the completion of the sale, the chief executive officer owned 99,980 shares of the company's stock, valued at $98,478,300.40. This represents a 18.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 26,088 shares of company stock worth $25,628,877. 0.47% of the stock is owned by insiders.

Institutional Investors Weigh In On United Rentals

Hedge funds and other institutional investors have recently modified their holdings of the stock. Woodline Partners LP raised its stake in shares of United Rentals by 40.0% in the first quarter. Woodline Partners LP now owns 5,518 shares of the construction company's stock worth $3,458,000 after buying an additional 1,577 shares during the period. Sei Investments Co. grew its stake in shares of United Rentals by 24.7% during the 2nd quarter. Sei Investments Co. now owns 27,136 shares of the construction company's stock valued at $20,444,000 after acquiring an additional 5,375 shares during the period. Treasurer of the State of North Carolina increased its holdings in United Rentals by 43.6% in the 2nd quarter. Treasurer of the State of North Carolina now owns 56,057 shares of the construction company's stock worth $42,233,000 after acquiring an additional 17,030 shares in the last quarter. HUB Investment Partners LLC increased its holdings in United Rentals by 11.3% in the 2nd quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company's stock worth $1,661,000 after acquiring an additional 223 shares in the last quarter. Finally, Diversify Advisory Services LLC raised its stake in United Rentals by 338.7% during the 2nd quarter. Diversify Advisory Services LLC now owns 1,654 shares of the construction company's stock worth $1,246,000 after acquiring an additional 1,277 shares during the period. 96.26% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently commented on URI shares. Weiss Ratings cut United Rentals from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, July 9th. KeyCorp boosted their target price on shares of United Rentals from $1,150.00 to $1,250.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. Citigroup upped their target price on shares of United Rentals from $1,210.00 to $1,270.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. JPMorgan Chase & Co. increased their price target on shares of United Rentals from $1,050.00 to $1,100.00 and gave the stock an "overweight" rating in a research note on Monday, July 13th. Finally, Truist Financial lifted their price target on shares of United Rentals from $1,209.00 to $1,421.00 and gave the company a "buy" rating in a research report on Thursday, July 2nd. Fourteen research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,140.00.

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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