United Rentals (NYSE:URI) Trading Up 6.9% - Here's What Happened

Key Points

• United Rentals shares jumped 6.9% on Wednesday, trading as high as $1,059.43 after closing the prior session at $994.82.
• Analysts have turned more bullish on the stock, with several firms raising price targets and the consensus rating sitting at Moderate Buy with an average target of $1,013.63.
• The company recently reported quarterly EPS of $9.71, below estimates, but revenue still rose 7.2% year over year to $3.99 billion, and it also paid a quarterly dividend of $1.97 per share.

United Rentals, Inc. (NYSE:URI - Get Free Report) was up 6.9% during trading on Wednesday . The stock traded as high as $1,059.43 and last traded at $1,063.5510. Approximately 513,010 shares changed hands during trading, a decline of 18% from the average daily volume of 625,602 shares. The stock had previously closed at $994.82.

Wall Street Analyst Weigh In

Several research analysts recently commented on URI shares. Royal Bank Of Canada boosted their price objective on shares of United Rentals from $1,041.00 to $1,119.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. KeyCorp boosted their price objective on shares of United Rentals from $950.00 to $1,150.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Robert W. Baird boosted their price objective on shares of United Rentals from $970.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Evercore reiterated an "outperform" rating and set a $1,101.00 price objective on shares of United Rentals in a research note on Monday, May 11th. Finally, Truist Financial set a $1,209.00 price objective on shares of United Rentals in a research note on Friday, April 24th. Twelve research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, United Rentals currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,013.63.

United Rentals Price Performance

The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.74 and a current ratio of 0.80. The firm has a market cap of $66.85 billion, a price-to-earnings ratio of 27.10, a price-to-earnings-growth ratio of 1.58 and a beta of 1.81. The stock's 50 day simple moving average is $860.45 and its 200-day simple moving average is $846.62.

United Rentals (NYSE:URI - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The construction company reported $9.71 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $11.47 by ($1.76). The company had revenue of $3.99 billion for the quarter, compared to analyst estimates of $4.20 billion. United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The company's revenue for the quarter was up 7.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $8.86 EPS. Equities research analysts anticipate that United Rentals, Inc. will post 47.07 EPS for the current fiscal year.

United Rentals Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th were issued a dividend of $1.97 per share. The ex-dividend date of this dividend was Wednesday, May 13th. This represents a $7.88 dividend on an annualized basis and a yield of 0.7%. United Rentals's dividend payout ratio is 20.10%.

Insider Activity

In related news, VP Andrew B. Limoges sold 548 shares of the stock in a transaction on 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 directly owned 1,865 shares of the company's stock, valued at approximately $1,823,708.90. This represents a 22.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Matthew John Flannery sold 22,768 shares of the stock in a transaction 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 sale, the chief executive officer directly owned 99,980 shares in the company, valued at $98,478,300.40. This trade represents a 18.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 26,088 shares of company stock valued at $25,628,877. 0.47% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On United Rentals

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Beacon Investment Advisory Services Inc. lifted its holdings in United Rentals by 1,358.7% during the fourth quarter. Beacon Investment Advisory Services Inc. now owns 8,227 shares of the construction company's stock valued at $6,658,000 after purchasing an additional 7,663 shares in the last quarter. Roman Butler Fullerton & Co. lifted its holdings in United Rentals by 70.7% during the third quarter. Roman Butler Fullerton & Co. now owns 1,707 shares of the construction company's stock valued at $1,486,000 after purchasing an additional 707 shares in the last quarter. Caprock Group LLC purchased a new position in United Rentals during the third quarter valued at $5,574,000. Nordea Investment Management AB lifted its stake in shares of United Rentals by 22.7% in the fourth quarter. Nordea Investment Management AB now owns 154,688 shares of the construction company's stock worth $126,362,000 after buying an additional 28,604 shares in the last quarter. Finally, TD Asset Management Inc lifted its stake in shares of United Rentals by 66.5% in the third quarter. TD Asset Management Inc now owns 484,450 shares of the construction company's stock worth $462,485,000 after buying an additional 193,416 shares in the last quarter. 96.26% of the stock is owned by hedge funds and other 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.

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