United Rentals (NYSE:URI) Releases Earnings Results, Misses Estimates By $1.76 EPS

United Rentals (NYSE:URI) announced its earnings results on Wednesday. The construction company reported $9.71 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $11.47 by ($1.76), FiscalAI reports. United Rentals had a return on equity of 30.35% and a net margin of 15.49%.The business had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $4.20 billion.

United Rentals Price Performance

Shares of NYSE URI traded down $2.81 during trading on Wednesday, hitting $803.41. 579,596 shares of the company were exchanged, compared to its average volume of 650,404. The company has a market cap of $50.53 billion, a price-to-earnings ratio of 20.77, a PEG ratio of 1.31 and a beta of 1.68. United Rentals has a 1 year low of $588.35 and a 1 year high of $1,021.47. The firm’s fifty day moving average price is $792.33 and its 200 day moving average price is $841.99. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.94 and a quick ratio of 0.88.

United Rentals Increases Dividend

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

United Rentals announced that its Board of Directors has approved a stock repurchase program on Wednesday, January 28th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the construction company to purchase up to 8.7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at United Rentals

In other United Rentals news, EVP William E. Grace sold 1,498 shares of the business’s stock in a transaction on 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 sale, the executive vice president directly owned 6,872 shares in the company, valued at approximately $5,434,996.08. The trade was a 17.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Michael D. Durand sold 2,490 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $791.14, for a total transaction of $1,969,938.60. Following the sale, the executive vice president owned 7,458 shares in the company, valued at $5,900,322.12. The trade was a 25.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.47% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Laurel Oak Wealth Management LLC acquired a new position in shares of United Rentals during the 4th quarter worth $274,000. Brown Brothers Harriman & Co. raised its stake in shares of United Rentals by 4.8% during the 4th quarter. Brown Brothers Harriman & Co. now owns 329 shares of the construction company’s stock worth $266,000 after buying an additional 15 shares during the last quarter. L2 Asset Management LLC raised its stake in shares of United Rentals by 6.0% during the 4th quarter. L2 Asset Management LLC now owns 319 shares of the construction company’s stock worth $258,000 after buying an additional 18 shares during the last quarter. GeoWealth Management LLC raised its stake in shares of United Rentals by 23.2% during the 4th quarter. GeoWealth Management LLC now owns 287 shares of the construction company’s stock worth $232,000 after buying an additional 54 shares during the last quarter. Finally, Davis R M Inc. raised its stake in shares of United Rentals by 9.2% during the 4th quarter. Davis R M Inc. now owns 261 shares of the construction company’s stock worth $211,000 after buying an additional 22 shares during the last quarter. Institutional investors and hedge funds own 96.26% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on URI. Sanford C. Bernstein set a $903.00 price target on United Rentals and gave the stock an “outperform” rating in a report on Thursday, April 9th. Citigroup decreased their price target on United Rentals from $1,090.00 to $950.00 and set a “buy” rating for the company in a report on Monday, February 2nd. Royal Bank Of Canada decreased their price target on United Rentals from $1,123.00 to $1,041.00 and set an “outperform” rating for the company in a report on Friday, January 30th. Robert W. Baird set a $970.00 price target on United Rentals in a report on Friday, January 30th. Finally, Truist Financial set a $972.00 price target on United Rentals in a report on Friday, January 30th. Two equities 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’s stock. According to data from MarketBeat, United Rentals currently has a consensus rating of “Moderate Buy” and a consensus target price of $914.88.

United Rentals Company Profile

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.