United Rentals (NYSE:URI) Shares Gap Down After Earnings Miss

United Rentals, Inc. (NYSE:URI) shares gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $903.19, but opened at $845.06. United Rentals shares last traded at $789.88, with a volume of 669,988 shares.

The construction company reported $11.09 EPS for the quarter, missing the consensus estimate of $11.86 by ($0.77). The business had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.24 billion. United Rentals had a net margin of 15.49% and a return on equity of 30.35%. United Rentals’s revenue was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $11.59 earnings per share.

United Rentals Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, February 25th. Investors of record on Wednesday, February 11th will be issued a $1.97 dividend. The ex-dividend date of this dividend is Wednesday, February 11th. This represents a $7.88 dividend on an annualized basis and a yield of 1.0%. This is a boost from United Rentals’s previous quarterly dividend of $1.79. United Rentals’s payout ratio is presently 20.37%.

United Rentals declared that its board has authorized a stock buyback program on Wednesday, January 28th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the construction company to repurchase up to 8.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Key United Rentals News

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

• Positive Sentiment: Board authorizes a $5.0 billion share repurchase program (about 8.7% of shares) and announced plans to return roughly $2 billion to shareholders, a sign management thinks the stock is undervalued. United Rentals Announces Fourth Quarter and Full-Year1 2025 Results…
• Positive Sentiment: Quarterly dividend raised ~10% to $1.97 (annualized yield ~1.0%), supporting cash-return narrative alongside the buyback. United Rentals’ Q4 Earnings & Revenues Miss, Dividend Hiked by 10%
• Neutral Sentiment: Updated FY2026 revenue guidance range of $16.8B–$17.3B lines up with consensus at the midpoint but leaves room for variability; investors will watch execution and margin trajectory. Here’s What Key Metrics Tell Us About United Rentals (URI) Q4 Earnings
• Neutral Sentiment: JPMorgan trimmed its price target from $1,150 to $970 but kept an Overweight rating — a cut that tempers enthusiasm but still implies meaningful upside from current levels. Benzinga
• Negative Sentiment: Q4 EPS of $11.09 missed estimates (~$11.8) and revenue slightly trailed expectations; investors sold on the results and margin concerns. Why United Rentals Stock Is Plummeting Today
• Negative Sentiment: Coverage commentary and press pieces highlight the stock’s near-term drop (Fool: “plunged by nearly 15% this week”) as investors digest weaker-than-expected quarter and margin commentary. Why United Rentals Stock Plunged by Nearly 15% This Week
• Negative Sentiment: Company disclosed a new Technology-category risk around expanding AI integration, raising strategic and regulatory risk considerations for the business. United Rentals Faces Heightened Strategic and Regulatory Risks as AI Integration Expands

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. KeyCorp set a $950.00 target price on shares of United Rentals in a research report on Friday. JPMorgan Chase & Co. decreased their price target on shares of United Rentals from $1,150.00 to $970.00 and set an “overweight” rating on the stock in a research note on Friday. Citigroup raised their price objective on United Rentals from $950.00 to $1,090.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Truist Financial set a $972.00 target price on United Rentals in a research report on Friday. Finally, Royal Bank Of Canada dropped their price target on United Rentals from $1,123.00 to $1,041.00 and set an “outperform” rating for the company in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $933.82.

Institutional Investors Weigh In On United Rentals

Several institutional investors have recently modified their holdings of URI. Laurel Wealth Advisors LLC purchased a new position in shares of United Rentals in the 4th quarter worth approximately $32,000. Bogart Wealth LLC lifted its position in United Rentals by 94.9% in the fourth quarter. Bogart Wealth LLC now owns 154 shares of the construction company’s stock worth $125,000 after buying an additional 75 shares during the last quarter. Interchange Capital Partners LLC boosted its stake in United Rentals by 43.4% during the fourth quarter. Interchange Capital Partners LLC now owns 608 shares of the construction company’s stock worth $493,000 after buying an additional 184 shares during the period. Keybank National Association OH increased its position in United Rentals by 14.9% during the fourth quarter. Keybank National Association OH now owns 2,098 shares of the construction company’s stock valued at $1,698,000 after acquiring an additional 272 shares during the last quarter. Finally, AMG National Trust Bank raised its stake in shares of United Rentals by 0.8% in the fourth quarter. AMG National Trust Bank now owns 1,897 shares of the construction company’s stock valued at $1,534,000 after acquiring an additional 15 shares during the period. 96.26% of the stock is owned by institutional investors.

United Rentals Stock Down 0.8%

The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.84 and a current ratio of 0.94. The company’s fifty day moving average price is $849.61 and its 200-day moving average price is $887.29. The stock has a market cap of $49.70 billion, a P/E ratio of 20.19, a price-to-earnings-growth ratio of 1.64 and a beta of 1.69.

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.