United Rentals (NYSE:URI) Sets New 52-Week High - Time to Buy?

Key Points

• Shares of United Rentals reached a new 52-week high, trading at $1,004.92, with the last noted price at $994.89.
• Wall Street analysts have mixed ratings for United Rentals, with estimates showing a consensus target price of $956.13 and a strong buy rating from two analysts.
• The company recently declared a quarterly dividend of $1.79, representing an annualized yield of 0.7% and a payout ratio of 18.52%.

Shares of United Rentals, Inc. (NYSE:URI - Get Free Report) reached a new 52-week high during trading on Thursday . The company traded as high as $1,004.92 and last traded at $994.89, with a volume of 378893 shares changing hands. The stock had previously closed at $988.59.

Wall Street Analysts Forecast Growth

A number of research firms have commented on URI. Morgan Stanley upped their price objective on shares of United Rentals from $702.00 to $955.00 and gave the company an "overweight" rating in a research note on Monday, July 28th. Barclays upped their price objective on shares of United Rentals from $565.00 to $620.00 and gave the company an "underweight" rating in a research note on Monday, July 21st. Robert W. Baird raised shares of United Rentals from a "neutral" rating to an "outperform" rating and upped their price objective for the company from $888.00 to $1,050.00 in a research note on Wednesday, October 1st. Bank of America upped their price objective on shares of United Rentals from $895.00 to $900.00 and gave the company a "buy" rating in a research note on Thursday, July 24th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of United Rentals in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, United Rentals presently has an average rating of "Moderate Buy" and a consensus target price of $956.13.

United Rentals Stock Up 0.9%

The business has a fifty day moving average of $933.80 and a 200 day moving average of $780.27. The stock has a market cap of $64.18 billion, a price-to-earnings ratio of 25.75, a P/E/G ratio of 2.29 and a beta of 1.73. 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 released its quarterly earnings data on Wednesday, July 23rd. The construction company reported $10.47 EPS for the quarter, missing analysts' consensus estimates of $10.54 by ($0.07). United Rentals had a return on equity of 32.01% and a net margin of 16.11%.The firm had revenue of $3.94 billion during the quarter, compared to analyst estimates of $3.90 billion. During the same quarter in the prior year, the company posted $10.70 EPS. The company's quarterly revenue was up 4.5% on a year-over-year basis. United Rentals has set its FY 2025 guidance at EPS. On average, equities analysts predict that United Rentals, Inc. will post 44.8 earnings per share for the current year.

United Rentals Announces Dividend

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

Hedge Funds Weigh In On United Rentals

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in United Rentals by 1.0% during the second quarter. Vanguard Group Inc. now owns 7,494,303 shares of the construction company's stock valued at $5,646,208,000 after purchasing an additional 72,267 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in United Rentals by 71.3% during the second quarter. JPMorgan Chase & Co. now owns 1,874,127 shares of the construction company's stock valued at $1,411,968,000 after purchasing an additional 780,322 shares during the last quarter. Franklin Resources Inc. grew its holdings in United Rentals by 6.1% during the second quarter. Franklin Resources Inc. now owns 1,231,108 shares of the construction company's stock valued at $927,517,000 after purchasing an additional 70,870 shares during the last quarter. Alliancebernstein L.P. grew its holdings in United Rentals by 3.7% during the second quarter. Alliancebernstein L.P. now owns 1,030,232 shares of the construction company's stock valued at $776,177,000 after purchasing an additional 36,991 shares during the last quarter. Finally, Norges Bank acquired a new position in United Rentals during the second quarter valued at approximately $776,102,000. Institutional investors and hedge funds own 96.26% of the company's stock.

United Rentals Company Profile

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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