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

United Rentals, Inc. (NYSE:URI) gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 EPS for the quarter, beating the consensus estimate of $8.35 by $0.80. United Rentals had a net margin of 16.91% and a return on equity of 36.80%. The business had revenue of $3.49 billion for the quarter, compared to analyst estimates of $3.44 billion. During the same period in the prior year, the business earned $7.95 earnings per share. The company’s quarterly revenue was up 6.1% on a year-over-year basis.

United Rentals Announces Dividend

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 given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a yield of 0.94%. The ex-dividend date of this dividend is Tuesday, May 7th. United Rentals’s payout ratio is 18.44%.

United Rentals declared that its board has authorized a share buyback program on Wednesday, January 24th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the construction company to repurchase up to 3.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

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

Insider Buying and Selling

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

Institutional Trading of United Rentals

Institutional investors have recently modified their holdings of the company. OFI Invest Asset Management acquired a new stake in shares of United Rentals during the third quarter valued at about $25,000. First Financial Corp IN acquired a new stake in United Rentals during the 1st quarter valued at approximately $25,000. AdvisorNet Financial Inc grew its stake in United Rentals by 71.4% during the 4th quarter. AdvisorNet Financial Inc now owns 48 shares of the construction company’s stock valued at $28,000 after purchasing an additional 20 shares in the last quarter. Rise Advisors LLC purchased a new stake in United Rentals during the 1st quarter worth approximately $28,000. Finally, NBC Securities Inc. acquired a new position in shares of United Rentals in the 3rd quarter valued at approximately $29,000. Hedge funds and other institutional investors own 96.26% of the company’s stock.

United Rentals Stock Performance

The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.75 and a current ratio of 0.81. The company has a market capitalization of $46.41 billion, a PE ratio of 19.55, a PEG ratio of 2.29 and a beta of 1.84. The company has a 50 day moving average price of $680.37 and a 200 day moving average price of $576.87.

About United Rentals

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.