United Rentals (NYSE:URI) Shares Gap Up Following Better-Than-Expected Earnings

United Rentals, Inc. (NYSE:URI)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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.

The construction company reported $9.15 EPS for the quarter, topping analysts’ consensus estimates of $8.35 by $0.80. The business had revenue of $3.49 billion for the quarter, compared to analysts’ expectations of $3.44 billion. United Rentals had a return on equity of 36.85% and a net margin of 17.31%. 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 earned $7.95 EPS.

United Rentals Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 22nd. Shareholders of record on Wednesday, May 8th will be paid a $1.63 dividend. The ex-dividend date 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 currently 17.66%.

United Rentals declared that its Board of Directors has approved a share buyback program on Wednesday, January 24th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the construction company to purchase up to 3.8% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

URI has been the topic of several research analyst reports. Morgan Stanley initiated coverage on United Rentals in a research note on Monday, January 8th. They set an “equal weight” rating and a $500.00 target price on the stock. The Goldman Sachs Group boosted their target price on United Rentals from $718.00 to $790.00 and gave the company a “buy” rating in a research note on Tuesday, April 16th. Robert W. Baird boosted their target price on United Rentals from $322.00 to $559.00 and gave the company an “underperform” rating in a research note 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 note on Tuesday, February 20th. Finally, Stifel Nicolaus boosted their target price on United Rentals from $720.00 to $750.00 and gave the company a “buy” rating in a research note on Friday. Three 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. Based on data from MarketBeat.com, United Rentals currently has a consensus rating of “Hold” and a consensus target price of $600.57.

Insider Buying and Selling

In other United Rentals news, CFO William E. Grace sold 775 shares of the business’s stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $655.62, for a total value of $508,105.50. Following the sale, the chief financial officer now directly owns 6,323 shares of the company’s stock, valued at $4,145,485.26. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.53% of the stock is owned by insiders.

Institutional Investors Weigh In On United Rentals

Hedge funds have recently added to or reduced their stakes in the stock. OFI Invest Asset Management bought a new position in shares of United Rentals during the third quarter valued at $25,000. First Financial Corp IN purchased a new stake in United Rentals during the first quarter valued at $25,000. AdvisorNet Financial Inc increased its position in United Rentals by 71.4% during the fourth quarter. AdvisorNet Financial Inc now owns 48 shares of the construction company’s stock valued at $28,000 after acquiring an additional 20 shares during the last quarter. Rise Advisors LLC purchased a new stake in United Rentals during the first quarter valued at $28,000. Finally, NBC Securities Inc. purchased a new stake in United Rentals during the third quarter valued at $29,000. 96.26% of the stock is owned by institutional investors.

United Rentals Stock Performance

The company has a market cap of $46.40 billion, a PE ratio of 18.71, a PEG ratio of 2.27 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. The business has a 50-day moving average of $681.18 and a 200 day moving average of $578.63.

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.