United Rentals (NYSE:URI) Trading Down 5.2% – Should You Sell?
by Mitch Edgeman · The Markets DailyUnited Rentals, Inc. (NYSE:URI – Get Free Report) was down 5.2% on Tuesday . The stock traded as low as $778.00 and last traded at $777.8270. Approximately 294,113 shares traded hands 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 analysts recently weighed in on URI shares. Truist Financial set a $972.00 price objective on United Rentals in a research report on Friday, January 30th. Citigroup reduced their price target on shares of United Rentals from $1,090.00 to $950.00 and set a “buy” rating on the stock in a research note on Monday, February 2nd. Weiss Ratings reissued a “hold (c+)” rating on shares of United Rentals in a research note on Wednesday, January 21st. Sanford C. Bernstein set a $965.00 target price on United Rentals in a report on Friday, January 30th. Finally, Royal Bank Of Canada cut their price target on United Rentals from $1,123.00 to $1,041.00 and set an “outperform” rating on the stock in a research note on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $925.59.
Read Our Latest Report on United Rentals
United Rentals Price Performance
The firm has a market cap of $49.03 billion, a price-to-earnings ratio of 20.12, a P/E/G ratio of 1.31 and a beta of 1.66. The company has a current ratio of 0.94, a quick ratio of 0.88 and a debt-to-equity ratio of 1.41. The business’s 50-day simple moving average is $872.83 and its two-hundred day simple moving average is $885.68.
United Rentals (NYSE:URI – Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The construction company reported $11.09 earnings per share for the quarter, missing analysts’ consensus estimates of $11.86 by ($0.77). The business had revenue of $4.21 billion for the quarter, compared to analyst estimates of $4.24 billion. United Rentals had a return on equity of 30.35% and a net margin of 15.49%.The business’s revenue was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the business posted $11.59 earnings per share. As a group, research analysts expect that United Rentals, Inc. will post 44.8 EPS for the current fiscal year.
United Rentals Increases Dividend
The business also recently declared a quarterly dividend, which was paid on Wednesday, February 25th. Shareholders of record on Wednesday, February 11th were issued a $1.97 dividend. The ex-dividend date was Wednesday, February 11th. This is a positive change from United Rentals’s previous quarterly dividend of $1.79. This represents a $7.88 dividend on an annualized basis and a yield of 1.0%. United Rentals’s dividend payout ratio is 20.37%.
United Rentals announced that its board has authorized a stock repurchase plan on Wednesday, January 28th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the construction company to purchase up to 8.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.
Insider Activity
In other news, EVP Michael D. Durand sold 2,490 shares of the company’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 owned 7,458 shares in the company, valued at approximately $5,900,322.12. This represents a 25.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP William E. Grace sold 1,498 shares of the firm’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total value of $1,184,753.22. Following the completion of the sale, the executive vice president owned 6,872 shares of the company’s stock, valued at approximately $5,434,996.08. This represents a 17.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.51% of the stock is currently owned by corporate insiders.
Institutional Trading of United Rentals
A number of hedge funds and other institutional investors have recently bought and sold shares of URI. Salomon & Ludwin LLC lifted its stake in shares of United Rentals by 650.0% in the third quarter. Salomon & Ludwin LLC now owns 30 shares of the construction company’s stock valued at $29,000 after buying an additional 26 shares in the last quarter. Abich Financial Wealth Management LLC purchased a new stake in shares of United Rentals during the third quarter valued at approximately $29,000. Aventura Private Wealth LLC bought a new stake in United Rentals during the fourth quarter worth $27,000. Cedar Mountain Advisors LLC purchased a new position in United Rentals in the third quarter worth $32,000. Finally, Core Wealth Advisors LLC bought a new position in United Rentals in the 4th quarter valued at $28,000. Institutional investors own 96.26% of the company’s stock.
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.