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

United Rentals, Inc. (NYSE:URI)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. 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 changing hands.

The construction company reported $11.09 EPS for the quarter, missing the consensus estimate of $11.86 by ($0.77). United Rentals had a net margin of 15.49% and a return on equity of 30.38%. The business had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.24 billion. During the same quarter last year, the company earned $11.59 EPS. The firm’s revenue for the quarter was up 2.8% compared to the same quarter last year.

United Rentals Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 25th. Investors of record on Wednesday, February 11th will be given 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 annualized dividend and a yield of 1.0%. United Rentals’s payout ratio is presently 18.42%.

United Rentals announced that its board has approved a stock buyback plan on Wednesday, January 28th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the construction company to purchase up to 8.7% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

United Rentals News Summary

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

• Positive Sentiment: Board approved a large buyback authorization — management authorized a $5.0 billion repurchase program (about 8.7% of shares), which supports share price over time and signals confidence from the board. RTT News – Stock Buybacks
• Positive Sentiment: Dividend increased 10% — the board raised the quarterly cash dividend to $1.97/share (payable Feb 25, ex‑div Feb 11), a signal of durable free cash flow and support for income investors. Press Release — Dividend Increase
• Neutral Sentiment: Company reported record 2025 results and set FY2026 guidance — management reiterated outlook with revenue guidance of $16.8–$17.3B (consensus ~ $17.1B), which is roughly in line with expectations but not clearly bullish. TipRanks — Record 2025 Results
• Neutral Sentiment: Investor materials and slide deck available — management provided the earnings presentation and call transcript for detail; useful for modeling fleet growth, utilization and capex. Earnings Presentation
• Negative Sentiment: Q4 EPS and revenue missed estimates — EPS was $11.09 vs. consensus ~$11.86 and revenue was $4.21B vs. ~$4.24B; EPS also declined from $11.59 a year ago, signaling margin pressure. Earnings Call Transcript
• Negative Sentiment: Market reaction focused on short‑term disappointment — coverage and market commentary highlight the Q4 miss as the proximate cause of the sharp selloff (weakness amplified by high trading volume). Fool — Why URI Is Plummeting
• Negative Sentiment: Revenue growth slowed and margins under pressure — revenue was up only ~2.8% YoY and net margin/readouts in the call pointed to cost and utilization headwinds that could weigh on near‑term profitability. Zacks — Q4 Miss & Dividend Hike

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the company. Barclays dropped their target price on United Rentals from $620.00 to $600.00 and set an “underweight” rating on the stock in a report on Monday, October 20th. Wells Fargo & Company boosted 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. Royal Bank Of Canada set a $1,123.00 price objective on shares of United Rentals in a research report on Friday, October 24th. Truist Financial reduced their target price on shares of United Rentals from $1,169.00 to $1,045.00 and set a “buy” rating for the company in a research note on Thursday, December 18th. Finally, KeyCorp reiterated an “overweight” rating on shares of United Rentals in a research note on Wednesday, December 3rd. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $970.76.

Hedge Funds Weigh In On United Rentals

A number of large investors have recently made changes to their positions in the stock. Optas LLC grew its position in United Rentals by 0.9% during the third quarter. Optas LLC now owns 1,174 shares of the construction company’s stock worth $1,121,000 after buying an additional 10 shares during the period. CreativeOne Wealth LLC boosted its stake in shares of United Rentals by 0.5% during the 2nd quarter. CreativeOne Wealth LLC now owns 2,283 shares of the construction company’s stock worth $1,720,000 after acquiring an additional 11 shares in the last quarter. OFI Invest Asset Management boosted its stake in shares of United Rentals by 6.7% during the 3rd quarter. OFI Invest Asset Management now owns 175 shares of the construction company’s stock worth $167,000 after acquiring an additional 11 shares in the last quarter. Gleason Group Inc. grew its holdings in shares of United Rentals by 4.3% in the 4th quarter. Gleason Group Inc. now owns 269 shares of the construction company’s stock worth $218,000 after acquiring an additional 11 shares during the period. Finally, Bridgewater Advisors Inc. increased its stake in United Rentals by 1.2% in the 4th quarter. Bridgewater Advisors Inc. now owns 967 shares of the construction company’s stock valued at $783,000 after purchasing an additional 11 shares in the last quarter. Hedge funds and other institutional investors own 96.26% of the company’s stock.

United Rentals Stock Performance

The firm has a fifty day moving average of $850.02 and a 200-day moving average of $887.49. The stock has a market capitalization of $49.96 billion, a price-to-earnings ratio of 20.30, a PEG ratio of 1.88 and a beta of 1.69. 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.