United Rentals (NYSE:URI) Trading Down 5.2% - What's Next?

Key Points

• United Rentals shares fell 5.2% to about $777.83 on Tuesday, trading as low as $778 with volume (~294,113) down ~59% from the average (~715,008).
• The company missed the quarter: EPS $11.09 versus $11.86 expected and revenue $4.21B versus $4.24B consensus, although revenue was up 2.8% year‑over‑year.
• Analysts remain broadly positive with an average target of about $925.59 and mostly Buy/Strong Buy ratings, while the board authorized a $5.0 billion share repurchase and raised the quarterly dividend to $1.97.

United Rentals, Inc. (NYSE:URI - Get Free Report)'s stock price was down 5.2% on Tuesday . The company traded as low as $778.00 and last traded at $777.8270. Approximately 294,113 shares were traded during trading, a decline of 59% from the average daily volume of 715,008 shares. The stock had previously closed at $820.68.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on URI. KeyCorp set a $950.00 target price on shares of United Rentals in a report on Friday, January 30th. Robert W. Baird set a $970.00 price objective on shares of United Rentals in a research note on Friday, January 30th. Truist Financial set a $972.00 target price on United Rentals in a research report on Friday, January 30th. Royal Bank Of Canada dropped their target price on United Rentals from $1,123.00 to $1,041.00 and set an "outperform" rating on the stock in a report on Friday, January 30th. Finally, UBS Group raised United Rentals from a "neutral" rating to a "buy" rating and set a $1,025.00 price target for the company in a research report on Sunday, January 4th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, United Rentals has an average rating of "Moderate Buy" and an average target price of $925.59.

United Rentals Price Performance

The business has a fifty day moving average of $872.83 and a 200 day moving average of $885.68. The firm has a market cap of $49.03 billion, a P/E ratio of 20.12, a PEG ratio of 1.31 and a beta of 1.66. The company has a quick ratio of 0.88, a current ratio of 0.94 and a debt-to-equity ratio of 1.41.

United Rentals (NYSE:URI - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The construction company reported $11.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $11.86 by ($0.77). United Rentals had a net margin of 15.49% and a return on equity of 30.35%. The business had revenue of $4.21 billion during the quarter, compared to the consensus estimate of $4.24 billion. During the same quarter in the prior year, the company earned $11.59 EPS. United Rentals's quarterly revenue was up 2.8% on a year-over-year basis. On average, sell-side analysts anticipate that United Rentals, Inc. will post 44.8 earnings per share for the current year.

United Rentals Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Stockholders of record on Wednesday, February 11th were paid a dividend of $1.97 per share. This represents a $7.88 dividend on an annualized basis and a dividend yield of 1.0%. This is an increase from United Rentals's previous quarterly dividend of $1.79. The ex-dividend date was Wednesday, February 11th. United Rentals's dividend payout ratio is 20.37%.

United Rentals declared that its board has authorized a stock repurchase program on Wednesday, January 28th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the construction company to reacquire up to 8.7% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Insider Transactions at United Rentals

In related news, EVP Michael D. Durand sold 2,490 shares of the firm's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $791.14, for a total transaction of $1,969,938.60. Following the transaction, the executive vice president directly owned 7,458 shares of the company's stock, valued at approximately $5,900,322.12. This trade represents a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP William E. Grace sold 1,498 shares of the business's stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total transaction of $1,184,753.22. Following the completion of the sale, the executive vice president directly owned 6,872 shares of the company's stock, valued at $5,434,996.08. This represents a 17.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.51% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On United Rentals

Institutional investors have recently made changes to their positions in the stock. Optas LLC lifted its position in shares of United Rentals by 0.9% during the 3rd quarter. Optas LLC now owns 1,174 shares of the construction company's stock valued at $1,121,000 after acquiring an additional 10 shares during the period. CreativeOne Wealth LLC raised its stake in United Rentals by 0.5% in the second quarter. CreativeOne Wealth LLC now owns 2,283 shares of the construction company's stock valued at $1,720,000 after purchasing an additional 11 shares in the last quarter. OFI Invest Asset Management lifted its position in United Rentals by 6.7% during the third quarter. OFI Invest Asset Management now owns 175 shares of the construction company's stock worth $167,000 after purchasing an additional 11 shares during the period. Gleason Group Inc. grew its stake in United Rentals by 4.3% during the fourth quarter. Gleason Group Inc. now owns 269 shares of the construction company's stock worth $218,000 after buying an additional 11 shares in the last quarter. Finally, Bridgewater Advisors Inc. grew its stake in United Rentals by 1.2% during the fourth quarter. Bridgewater Advisors Inc. now owns 967 shares of the construction company's stock worth $783,000 after buying an additional 11 shares in the last quarter. 96.26% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.