United Rentals (NYSE:URI) Posts Earnings Results, Misses Expectations By $1.76 EPS

United Rentals (NYSE:URI) issued its earnings results on Wednesday. The construction company reported $9.71 EPS for the quarter, missing the consensus estimate of $11.47 by ($1.76), FiscalAI reports. The business had revenue of $3.99 billion for the quarter, compared to the consensus estimate of $4.20 billion. United Rentals had a return on equity of 30.53% and a net margin of 15.32%.The business’s revenue was up 7.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $8.86 earnings per share.

United Rentals Stock Up 23.4%

Shares of NYSE:URI opened at $991.00 on Friday. The business has a fifty day simple moving average of $793.30 and a 200 day simple moving average of $842.73. The company has a quick ratio of 0.88, a current ratio of 0.94 and a debt-to-equity ratio of 1.41. United Rentals has a 12-month low of $605.43 and a 12-month high of $1,021.47. The firm has a market cap of $62.32 billion, a P/E ratio of 25.20, a P/E/G ratio of 1.30 and a beta of 1.68.

United Rentals Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Wednesday, May 13th will be paid a dividend of $1.97 per share. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $7.88 annualized dividend and a dividend yield of 0.8%. United Rentals’s dividend payout ratio (DPR) is presently 20.37%.

Insiders Place Their Bets

In related news, EVP William E. Grace sold 1,498 shares of the business’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total value of $1,184,753.22. Following the transaction, the executive vice president directly owned 6,872 shares of the company’s stock, valued at approximately $5,434,996.08. The trade was a 17.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Michael D. Durand sold 2,490 shares of United Rentals stock in a transaction dated 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 completion of the sale, the executive vice president directly owned 7,458 shares in the company, valued at approximately $5,900,322.12. This represents a 25.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.47% of the company’s stock.

Hedge Funds Weigh In On United Rentals

A number of hedge funds and other institutional investors have recently bought and sold shares of URI. Boston Partners lifted its holdings in shares of United Rentals by 4.1% during the 3rd quarter. Boston Partners now owns 744,672 shares of the construction company’s stock worth $712,228,000 after acquiring an additional 29,422 shares during the last quarter. Invesco Ltd. grew its position in United Rentals by 0.9% during the third quarter. Invesco Ltd. now owns 649,608 shares of the construction company’s stock valued at $620,155,000 after acquiring an additional 5,497 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of United Rentals by 1.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 491,145 shares of the construction company’s stock valued at $397,493,000 after purchasing an additional 8,042 shares in the last quarter. Amundi boosted its holdings in United Rentals by 19.2% during the 4th quarter. Amundi now owns 376,795 shares of the construction company’s stock valued at $304,948,000 after acquiring an additional 60,771 shares during the period. Finally, Wells Fargo & Company MN increased its holdings in United Rentals by 0.6% during the 4th quarter. Wells Fargo & Company MN now owns 287,645 shares of the construction company’s stock valued at $232,797,000 after purchasing an additional 1,609 shares during the period. Hedge funds and other institutional investors own 96.26% of the company’s stock.

Key Headlines Impacting United Rentals

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

• Positive Sentiment: Record Q1 results and upgraded FY26 outlook — United Rentals reported strong Q1 performance (adjusted EPS ~$9.71, ~ $3.98B total revenue) and raised full?year revenue and EBITDA guidance, which underpins upward revisions to earnings expectations and investor optimism. MarketWatch: Strong Q1 & Guidance
• Positive Sentiment: Large share repurchases and dividend continuation — Management returned $500M in the quarter and announced execution of a new $5.0B buyback authorization plus an announced quarterly dividend, supporting EPS accretion and buyback-driven valuation support. QuiverQuant: Buybacks & Returns
• Positive Sentiment: Analyst upgrade and higher price target — Robert W. Baird raised its price target to $1,100 and kept an Outperform rating, giving additional analyst support that can fuel further buying. Benzinga: Baird PT Raise
• Neutral Sentiment: Investor recognition and index spotlight — Coverage pieces note URI gaining attention in the Russell 1000 and broad media coverage of the beat/upgrade, which can increase liquidity but is not a direct fundamental change. Kalkine Media: Russell 1000 Spotlight
• Neutral Sentiment: Earnings call tone — Company commentary on the Q1 call emphasized confident growth and fleet productivity gains; positive tone but execution risk remains tied to construction/industrial demand cycles. TipRanks: Earnings Call Highlights
• Negative Sentiment: Insider sales and large institutional reductions in recent quarters — Filings show executives have sold shares and some major institutions trimmed positions, a counterweight that could limit the upside if sustained. QuiverQuant: Insider & Institutional Activity

United Rentals announced that its board has authorized a share buyback plan on Wednesday, January 28th that authorizes the company to repurchase $5.00 billion in shares. This repurchase authorization authorizes the construction company to repurchase up to 8.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on URI. Citigroup reduced their price objective 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. Weiss Ratings reissued a “hold (c+)” rating on shares of United Rentals in a research note on Monday. Wells Fargo & Company raised their target price on United Rentals from $995.00 to $1,071.00 and gave the company an “overweight” rating in a report on Friday, January 23rd. Royal Bank Of Canada restated an “outperform” rating on shares of United Rentals in a research report on Friday. Finally, Robert W. Baird raised their price objective on United Rentals from $970.00 to $1,100.00 and gave the company an “outperform” rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $922.53.

About United Rentals

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.