Wall Street Zen Upgrades United Rentals (NYSE:URI) to Buy

Key Points

• Wall Street Zen upgraded United Rentals from hold to buy, adding to a broadly bullish analyst backdrop for the stock.
• The company recently reported Q2 earnings of $12.76 per share on $4.41 billion in revenue, both above estimates, and revenue rose 11.8% year over year.
• Analyst sentiment remains strong overall, with 14 Buy ratings versus one Hold and one Sell, and an average price target of $1,226.50 according to MarketBeat.

United Rentals (NYSE:URI - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

Other analysts have also recently issued research reports about the stock. Morgan Stanley set a $1,335.00 target price on shares of United Rentals and gave the stock an "overweight" rating in a research note on Friday. UBS Group reiterated a "buy" rating and set a $1,350.00 price target on shares of United Rentals in a research note on Thursday. Weiss Ratings cut shares of United Rentals from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, July 9th. Robert W. Baird set a $1,300.00 price objective on shares of United Rentals in a research report on Friday. Finally, Truist Financial lifted their price objective on United Rentals from $1,421.00 to $1,466.00 and gave the company a "buy" rating in a report on Friday. Fourteen analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, United Rentals currently has an average rating of "Moderate Buy" and an average price target of $1,226.50.

United Rentals Trading Up 0.0%

NYSE:URI opened at $1,140.19 on Friday. United Rentals has a 12-month low of $701.59 and a 12-month high of $1,177.67. The company has a current ratio of 0.76, a quick ratio of 0.74 and a debt-to-equity ratio of 1.38. The stock's 50 day simple moving average is $1,052.87 and its 200-day simple moving average is $919.10. The firm has a market cap of $70.97 billion, a P/E ratio of 27.38, a PEG ratio of 1.82 and a beta of 1.79.

United Rentals (NYSE:URI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The construction company reported $12.76 earnings per share for the quarter, topping the consensus estimate of $11.53 by $1.23. The firm had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.22 billion. United Rentals had a return on equity of 31.72% and a net margin of 15.67%.The company's revenue for the quarter was up 11.8% on a year-over-year basis. During the same period last year, the company earned $10.47 earnings per share. Equities analysts anticipate that United Rentals will post 46.85 EPS for the current year.

Insider Transactions at United Rentals

In other United Rentals news, EVP Craig Adam Pintoff sold 2,466 shares of the stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $963.00, for a total value of $2,374,758.00. Following the completion of the transaction, the executive vice president directly owned 14,774 shares of the company's stock, valued at approximately $14,227,362. This trade represents a 14.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Joli L. Gross sold 306 shares of United Rentals stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $954.99, for a total transaction of $292,226.94. Following the sale, the senior vice president owned 5,738 shares of the company's stock, valued at approximately $5,479,732.62. The trade was a 5.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.47% of the company's stock.

Institutional Trading of United Rentals

A number of institutional investors have recently bought and sold shares of URI. Woodline Partners LP raised its stake in shares of United Rentals by 40.0% during the 1st 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 last quarter. Sei Investments Co. grew its stake in United Rentals by 24.7% in 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 last quarter. Treasurer of the State of North Carolina increased its holdings in 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 valued at $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% during the 2nd quarter. HUB Investment Partners LLC now owns 2,205 shares of the construction company's stock valued at $1,661,000 after acquiring an additional 223 shares in the last quarter. Finally, Diversify Advisory Services LLC raised 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 acquiring an additional 1,277 shares during the last quarter. 96.26% of the stock is currently owned by hedge funds and other institutional investors.

United Rentals News Roundup

Here are the key news stories impacting United Rentals this week:

• Positive Sentiment: JPMorgan raised its price target on United Rentals to $1,235 and kept an overweight rating, signaling confidence in continued upside. JPMorgan price target increase
• Positive Sentiment: Truist boosted its target to $1,466 and maintained a buy rating, reflecting a more optimistic view of URI’s earnings power and demand trends. Truist price target increase
• Positive Sentiment: Citigroup raised its target to $1,330 with a buy rating after the company’s strong Q2 results and improved guidance. Citigroup price target increase
• Positive Sentiment: Bank of America increased its target to $1,300 and reiterated a buy rating, adding to the positive analyst momentum around the stock. Bank of America price target increase
• Positive Sentiment: United Rentals reported Q2 earnings of $12.76 per share and revenue of $4.41 billion, both ahead of expectations, and raised full-year guidance on stronger rental growth and demand. Q2 earnings beat and guidance raise
• Neutral Sentiment: The company also declared a quarterly dividend of $1.97 per share, which is a modest shareholder-return update but not likely the main driver of today’s trading. Dividend announcement

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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