United Rentals (NYSE:URI) Shares Gap Up on Earnings Beat

United Rentals, Inc. (NYSE:URI)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $655.19, but opened at $680.00. United Rentals shares last traded at $668.57, with a volume of 339,574 shares trading hands.

The construction company reported $9.15 earnings per share for the quarter, topping analysts’ consensus estimates of $8.35 by $0.80. The firm had revenue of $3.49 billion for the quarter, compared to the consensus estimate of $3.44 billion. United Rentals had a net margin of 16.91% and a return on equity of 36.80%. The business’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm posted $7.95 EPS.

United Rentals Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 22nd. Shareholders of record on Wednesday, May 8th will be given a dividend of $1.63 per share. The ex-dividend date of this dividend is Tuesday, May 7th. This represents a $6.52 dividend on an annualized basis and a yield of 0.94%. United Rentals’s dividend payout ratio (DPR) is presently 18.44%.

United Rentals declared that its board has authorized a share buyback plan on Wednesday, January 24th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the construction company to buy up to 3.8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Barclays raised their target price on shares of United Rentals from $325.00 to $400.00 and gave the stock an “underweight” rating in a report on Friday, January 26th. Evercore ISI boosted their target price on United Rentals from $575.00 to $740.00 and gave the company an “outperform” rating in a research report on Tuesday, February 20th. Wells Fargo & Company upped their target price on United Rentals from $630.00 to $710.00 and gave the company an “overweight” rating in a research note on Friday, January 26th. Truist Financial began coverage on United Rentals in a research note on Thursday, March 14th. They set a “buy” rating and a $793.00 price target for the company. Finally, The Goldman Sachs Group upped their price objective on United Rentals from $718.00 to $790.00 and gave the company a “buy” rating in a research report on Tuesday, April 16th. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat, United Rentals currently has a consensus rating of “Hold” and a consensus target price of $589.21.

Insider Buying and Selling at United Rentals

In other news, CFO William E. Grace sold 775 shares of the company’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $655.62, for a total value of $508,105.50. Following the completion of the sale, the chief financial officer now owns 6,323 shares of the company’s stock, valued at approximately $4,145,485.26. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.53% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the stock. Hoylecohen LLC raised its holdings in United Rentals by 1.4% in the fourth quarter. Hoylecohen LLC now owns 1,163 shares of the construction company’s stock worth $667,000 after purchasing an additional 16 shares in the last quarter. Ballentine Partners LLC raised its stake in shares of United Rentals by 2.1% during the 4th quarter. Ballentine Partners LLC now owns 889 shares of the construction company’s stock worth $510,000 after acquiring an additional 18 shares in the last quarter. DGS Capital Management LLC lifted its position in United Rentals by 1.3% during the fourth quarter. DGS Capital Management LLC now owns 1,441 shares of the construction company’s stock valued at $827,000 after acquiring an additional 18 shares during the last quarter. Oak Ridge Investments LLC boosted its stake in United Rentals by 0.3% in the fourth quarter. Oak Ridge Investments LLC now owns 5,816 shares of the construction company’s stock valued at $3,335,000 after acquiring an additional 20 shares in the last quarter. Finally, Caprock Group LLC boosted its stake in United Rentals by 2.3% in the fourth quarter. Caprock Group LLC now owns 900 shares of the construction company’s stock valued at $516,000 after acquiring an additional 20 shares in the last quarter. 96.26% of the stock is owned by institutional investors.

United Rentals Stock Up 5.5 %

The company’s fifty day simple moving average is $680.37 and its 200-day simple moving average is $576.87. The firm has a market capitalization of $46.41 billion, a PE ratio of 19.55, a price-to-earnings-growth ratio of 2.29 and a beta of 1.84. The company has a debt-to-equity ratio of 1.24, a current ratio of 0.81 and a quick ratio of 0.75.

United Rentals Company Profile

United Rentals, Inc, through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.