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

United Rentals, Inc. (NYSE:URI)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $991.50, but opened at $950.01. United Rentals shares last traded at $967.58, with a volume of 136,820 shares traded.

The construction company reported $11.70 EPS for the quarter, missing analysts’ consensus estimates of $12.43 by ($0.73). The business had revenue of $4.23 billion for the quarter, compared to analyst estimates of $4.16 billion. United Rentals had a return on equity of 31.47% and a net margin of 15.83%.The firm’s quarterly revenue was up 5.9% compared to the same quarter last year. During the same quarter last year, the firm earned $11.80 earnings per share. United Rentals has set its FY 2025 guidance at EPS.

United Rentals Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Wednesday, November 12th will be given a dividend of $1.79 per share. The ex-dividend date is Wednesday, November 12th. This represents a $7.16 dividend on an annualized basis and a dividend yield of 0.8%. United Rentals’s payout ratio is currently 18.52%.

Analyst Ratings Changes

A number of analysts have recently issued reports on URI shares. Robert W. Baird upgraded United Rentals from a “neutral” rating to an “outperform” rating and boosted their price objective for the company from $888.00 to $1,050.00 in a research report on Wednesday, October 1st. Barclays lowered their price objective on United Rentals from $620.00 to $600.00 and set an “underweight” rating on the stock in a research report on Monday. Argus set a $935.00 price objective on United Rentals in a research report on Tuesday, August 12th. Morgan Stanley boosted their price objective on United Rentals from $702.00 to $955.00 and gave the company an “overweight” rating in a research report on Monday, July 28th. Finally, Citigroup reiterated a “buy” rating on shares of United Rentals in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, United Rentals presently has a consensus rating of “Moderate Buy” and a consensus target price of $966.47.

Hedge Funds Weigh In On United Rentals

A number of institutional investors and hedge funds have recently bought and sold shares of URI. TruNorth Capital Management LLC boosted its stake in United Rentals by 1,266.7% in the first quarter. TruNorth Capital Management LLC now owns 41 shares of the construction company’s stock worth $26,000 after purchasing an additional 38 shares in the last quarter. Loomis Sayles & Co. L P acquired a new position in United Rentals in the second quarter worth $28,000. Salomon & Ludwin LLC boosted its stake in United Rentals by 650.0% in the third quarter. Salomon & Ludwin LLC now owns 30 shares of the construction company’s stock worth $29,000 after purchasing an additional 26 shares in the last quarter. Flaharty Asset Management LLC acquired a new position in United Rentals in the first quarter worth $30,000. Finally, Migdal Insurance & Financial Holdings Ltd. boosted its stake in United Rentals by 69.0% in the first quarter. Migdal Insurance & Financial Holdings Ltd. now owns 49 shares of the construction company’s stock worth $31,000 after purchasing an additional 20 shares in the last quarter. Institutional investors and hedge funds own 96.26% of the company’s stock.

United Rentals Trading Down 7.9%

The company has a debt-to-equity ratio of 1.34, a current ratio of 0.86 and a quick ratio of 0.80. The company has a market cap of $58.76 billion, a price-to-earnings ratio of 23.49, a price-to-earnings-growth ratio of 2.29 and a beta of 1.73. The business has a 50 day simple moving average of $956.19 and a 200 day simple moving average of $807.72.

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.