United Rentals (NYSE:URI) Sets New 12-Month High - Time to Buy?

Key Points

• United Rentals reached a new 52-week high of $1,177.93, while analysts maintain a “Moderate Buy” consensus with an average price target of $1,246.19.
• The company beat quarterly expectations, reporting $12.76 in EPS and $4.41 billion in revenue; revenue increased 11.8% year over year.
• United Rentals declared a quarterly dividend of $1.97 per share, or $7.88 annualized, representing a 0.7% yield and an 18.92% payout ratio.

United Rentals, Inc. (NYSE:URI - Get Free Report) reached a new 52-week high during trading on Friday . The company traded as high as $1,177.93 and last traded at $1,174.2750, with a volume of 163537 shares traded. The stock had previously closed at $1,162.66.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on URI. Zacks Research upgraded United Rentals from a "hold" rating to a "strong-buy" rating in a report on Monday, July 27th. Royal Bank Of Canada raised their target price on shares of United Rentals from $1,041.00 to $1,119.00 and gave the company an "outperform" rating in a research note on Friday, April 24th. JPMorgan Chase & Co. upped their price target on shares of United Rentals from $1,100.00 to $1,235.00 and gave the stock an "overweight" rating in a research report on Friday, July 24th. Morgan Stanley set a $1,335.00 price objective on shares of United Rentals and gave the company an "overweight" rating in a research report on Friday, July 24th. Finally, Sanford C. Bernstein set a $903.00 target price on shares of United Rentals and gave the company an "outperform" rating in a report on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, United Rentals presently has an average rating of "Moderate Buy" and an average price target of $1,246.19.

United Rentals Stock Performance

The company has a debt-to-equity ratio of 1.38, a current ratio of 0.76 and a quick ratio of 0.70. The stock's 50-day simple moving average is $1,082.01 and its 200 day simple moving average is $931.50. The stock has a market capitalization of $72.52 billion, a P/E ratio of 28.00, a PEG ratio of 1.50 and a beta of 1.80.

United Rentals (NYSE:URI - Get Free Report) last posted its earnings results on Tuesday, July 21st. The construction company reported $12.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.53 by $1.23. The company 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%. United Rentals's quarterly revenue was up 11.8% compared to the same quarter last year. During the same quarter last year, the company posted $10.47 EPS. Research analysts expect that United Rentals, Inc. will post 48.55 EPS for the current fiscal year.

United Rentals Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Wednesday, August 12th will be paid a dividend of $1.97 per share. The ex-dividend date is Wednesday, August 12th. This represents a $7.88 dividend on an annualized basis and a dividend yield of 0.7%. United Rentals's dividend payout ratio (DPR) is 18.92%.

Insiders Place Their Bets

In related news, EVP William E. Grace sold 1,500 shares of the business's stock in a transaction on 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 sale, the executive vice president directly owned 6,062 shares in the company, valued at $6,869,155.30. The trade was a 19.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.47% of the company's stock.

Hedge Funds Weigh In On United Rentals

A number of hedge funds have recently bought and sold shares of URI. Woodline Partners LP grew its position in United Rentals by 40.0% during 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 in the last quarter. Sei Investments Co. lifted its position 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 grew its holdings in shares of United Rentals by 43.6% during 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 purchasing an additional 17,030 shares in the last quarter. HUB Investment Partners LLC raised its stake in United Rentals by 11.3% in the second quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company's stock valued at $1,661,000 after purchasing an additional 223 shares in the last quarter. Finally, Diversify Advisory Services LLC lifted its position in United Rentals by 338.7% during the second quarter. Diversify Advisory Services LLC now owns 1,654 shares of the construction company's stock worth $1,246,000 after purchasing an additional 1,277 shares during the period. 96.26% of the stock is owned by institutional investors.

United Rentals Company Profile

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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