Zacks Investment Research Downgrades United Rentals, Inc. (URI) to Hold
United Rentals, Inc. (NYSE:URI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “United Rentals’ shares have gained 78.9% in the last one year, outperforming the industry it belongs to. The company’s main strategy is to improve profitability of its core equipment rental business through revenue growth, margin expansion and operational efficiencies. In particular, the company’s strategy calls for the implementation of Project XL, which is a set of eight specific work streams focused on driving profitable growth through revenue opportunities and generating incremental profitability through cost savings. United Rentals is focused on expanding its geographic borders and product portfolio through acquisitions and joint ventures. The addition of NES Rentals is expected to significantly drive the stock’s performance in the upcoming quarters as well. However, a decline in rental rates raises concern. Rental rates fell 2.2% in 2016 and 1.2% in the first half of 2017 on a year-over-year basis, respectively.”
Several other research firms have also issued reports on URI. Jefferies Group LLC reissued a “buy” rating and set a $150.00 price target on shares of United Rentals in a research report on Friday, June 9th. Citigroup Inc. upped their price target on United Rentals from $130.00 to $142.00 and gave the company a “buy” rating in a research report on Friday, July 21st. UBS AG reissued a “neutral” rating and set a $125.00 price target on shares of United Rentals in a research report on Sunday, August 20th. ValuEngine lowered United Rentals from a “strong-buy” rating to a “buy” rating in a research report on Thursday, July 20th. Finally, Stifel Nicolaus reissued a “hold” rating on shares of United Rentals in a research report on Friday, July 21st. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, ten have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $127.85.
United Rentals (URI) traded down 0.17% during mid-day trading on Monday, reaching $132.08. 646,435 shares of the company’s stock were exchanged. The company’s 50 day moving average price is $117.55 and its 200-day moving average price is $115.67. United Rentals has a 52 week low of $70.58 and a 52 week high of $134.28. The company has a market capitalization of $11.17 billion, a P/E ratio of 19.19 and a beta of 2.42.
United Rentals (NYSE:URI) last posted its quarterly earnings results on Wednesday, July 19th. The construction company reported $2.37 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.28 by $0.09. The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.55 billion. United Rentals had a return on equity of 46.01% and a net margin of 9.86%. The business’s revenue was up 12.4% compared to the same quarter last year. During the same period in the prior year, the company posted $2.06 EPS. On average, equities research analysts expect that United Rentals will post $9.91 earnings per share for the current fiscal year.
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In other news, CFO William B. Plummer sold 5,301 shares of the firm’s stock in a transaction on Friday, September 15th. The stock was sold at an average price of $128.26, for a total transaction of $679,906.26. Following the transaction, the chief financial officer now directly owns 38,055 shares of the company’s stock, valued at $4,880,934.30. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Michael Kneeland sold 30,000 shares of the firm’s stock in a transaction on Friday, July 21st. The shares were sold at an average price of $120.77, for a total value of $3,623,100.00. Following the transaction, the insider now directly owns 302,292 shares in the company, valued at $36,507,804.84. The disclosure for this sale can be found here. 1.20% of the stock is currently owned by company insiders.
Several institutional investors and hedge funds have recently modified their holdings of the company. Cleararc Capital Inc. increased its holdings in shares of United Rentals by 0.6% during the first quarter. Cleararc Capital Inc. now owns 2,048 shares of the construction company’s stock valued at $256,000 after purchasing an additional 12 shares during the period. Dumont & Blake Investment Advisors LLC boosted its stake in United Rentals by 0.3% during the second quarter. Dumont & Blake Investment Advisors LLC now owns 5,360 shares of the construction company’s stock valued at $604,000 after buying an additional 15 shares in the last quarter. Profund Advisors LLC boosted its stake in United Rentals by 1.1% during the second quarter. Profund Advisors LLC now owns 2,256 shares of the construction company’s stock valued at $254,000 after buying an additional 24 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its stake in United Rentals by 0.4% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 6,279 shares of the construction company’s stock valued at $708,000 after buying an additional 25 shares in the last quarter. Finally, Bank of Hawaii boosted its stake in United Rentals by 0.3% during the second quarter. Bank of Hawaii now owns 11,330 shares of the construction company’s stock valued at $1,277,000 after buying an additional 30 shares in the last quarter. 93.66% of the stock is currently owned by institutional investors.
About United Rentals
United Rentals, Inc is a holding company. The Company is an equipment rental company, which operates throughout the United States and Canada. It operates through two segments: general rentals, and trench, power and pump. The general rentals segment includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities.
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