United Rentals (NYSE:URI) Shares Gap Down Following Weak Earnings

United Rentals, Inc. (NYSE:URI)’s share price gapped down prior to trading 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 for the quarter, compared to the consensus estimate of $4.24 billion. United Rentals had a net margin of 15.83% and a return on equity of 31.30%. United Rentals’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same quarter last year, the business earned $11.59 EPS.

United Rentals Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, February 25th. Investors of record on Wednesday, February 11th will be paid a $1.97 dividend. This is a boost from United Rentals’s previous quarterly dividend of $1.79. The ex-dividend date is Wednesday, February 11th. This represents a $7.88 dividend on an annualized basis and a yield of 1.0%. United Rentals’s dividend payout ratio (DPR) is 18.42%.

United Rentals declared that its Board of Directors has authorized a stock buyback program on Wednesday, January 28th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the construction company to buy up to 8.7% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Key Stories Impacting United Rentals

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

• Positive Sentiment: Board raises quarterly cash dividend 10% to $1.97/share (ex?dividend Feb 11, payable Feb 25), signaling shareholder return focus and confidence in cash flow. Read More.
• Positive Sentiment: Board authorized a $5.0 billion share repurchase program (?8.7% of shares outstanding), which typically supports the stock and indicates management believes shares may be undervalued. Read More.
• Positive Sentiment: Company reported record 2025 results (full year and Q4) and set a 2026 outlook, highlighting underlying business strength despite the quarter’s miss. Read More.
• Neutral Sentiment: FY?2026 revenue guidance set at $16.8B–$17.3B versus consensus ? $17.1B — range includes Street view, so guidance is broadly in line but not a clear beat. EPS guidance details were not highlighted in the summary. Read More.
• Negative Sentiment: Q4 results missed estimates: EPS $11.09 vs. consensus ~$11.86 and revenue $4.21B vs. ~$4.24B — the shortfall (and EPS decline vs. year-ago $11.59) is the primary driver of downward pressure. Read More.
• Negative Sentiment: Market reaction: multiple outlets report the stock fell on the earnings/revenue miss despite record-year results and capital-return actions, amplifying near?term selling pressure. Read More.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Robert W. Baird upgraded shares of United Rentals from a “neutral” rating to an “outperform” rating and lifted their target price for the company from $888.00 to $1,050.00 in a research report on Wednesday, October 1st. UBS Group upgraded United Rentals from a “neutral” rating to a “buy” rating and set a $1,025.00 price target on the stock in a report on Sunday, January 4th. KeyCorp restated an “overweight” rating on shares of United Rentals in a report on Wednesday, December 3rd. Truist Financial dropped their target price on United Rentals from $1,169.00 to $1,045.00 and set a “buy” rating for the company in a research report on Thursday, December 18th. Finally, Wells Fargo & Company raised their price objective on shares of United Rentals from $995.00 to $1,071.00 and gave the company an “overweight” rating in a research note on Friday, January 23rd. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, United Rentals has a consensus rating of “Moderate Buy” and an average price target of $970.76.

Institutional Investors Weigh In On United Rentals

Several hedge funds have recently modified their holdings of URI. Munich Reinsurance Co Stock Corp in Munich grew its holdings in United Rentals by 41.5% during the 4th quarter. Munich Reinsurance Co Stock Corp in Munich now owns 184 shares of the construction company’s stock worth $150,000 after acquiring an additional 54 shares during the last quarter. Klingman & Associates LLC grew its stake in shares of United Rentals by 6.9% in the fourth quarter. Klingman & Associates LLC now owns 714 shares of the construction company’s stock valued at $578,000 after acquiring an additional 46 shares in the last quarter. Concurrent Investment Advisors LLC grew its stake in United Rentals by 2,287.6% during the fourth quarter. Concurrent Investment Advisors LLC now owns 13,705 shares of the construction company’s stock worth $11,091,000 after buying an additional 13,131 shares in the last quarter. Generali Investments Management Co LLC bought a new stake in shares of United Rentals during the 4th quarter valued at approximately $49,000. Finally, Calamos Advisors LLC increased its position in United Rentals by 27.5% in the 4th quarter. Calamos Advisors LLC now owns 29,267 shares of the construction company’s stock valued at $23,686,000 after acquiring an additional 6,308 shares during the period. 96.26% of the stock is owned by hedge funds and other institutional investors.

United Rentals Price Performance

The firm has a market cap of $49.36 billion, a P/E ratio of 19.95, a P/E/G ratio of 1.89 and a beta of 1.69. The business’s 50 day moving average is $849.72 and its two-hundred day moving average is $888.21. The company has a quick ratio of 0.84, a current ratio of 0.90 and a debt-to-equity ratio of 1.40.

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.