United Rentals (NYSE:URI) Issues Quarterly Earnings Results, Misses Expectations By $0.38 EPS

United Rentals (NYSE:URIGet Rating) released its quarterly earnings results on Wednesday. The construction company reported $9.74 earnings per share (EPS) for the quarter, missing the consensus estimate of $10.12 by ($0.38), RTT News reports. The firm had revenue of $3.30 billion during the quarter, compared to the consensus estimate of $3.29 billion. United Rentals had a net margin of 17.51% and a return on equity of 35.38%. The business’s revenue for the quarter was up 18.7% compared to the same quarter last year. During the same quarter last year, the firm earned $7.39 earnings per share. United Rentals updated its FY 2023 guidance to EPS.

United Rentals Stock Down 0.3 %

Shares of United Rentals stock opened at $392.48 on Thursday. United Rentals has a one year low of $230.54 and a one year high of $397.38. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.03 and a quick ratio of 0.94. The stock’s 50-day moving average is $363.77 and its 200 day moving average is $321.32. The firm has a market cap of $27.20 billion, a price-to-earnings ratio of 14.42, a PEG ratio of 0.58 and a beta of 1.81.

United Rentals Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 22nd. Investors of record on Wednesday, February 8th will be given a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 1.51%.

United Rentals announced that its Board of Directors has approved a stock repurchase plan on Wednesday, October 26th that allows the company to buyback $1.25 billion in outstanding shares. This buyback authorization allows the construction company to reacquire up to 5.8% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts have recently weighed in on URI shares. Citigroup upped their target price on United Rentals to $415.00 in a research report on Wednesday, December 14th. KeyCorp upped their target price on United Rentals from $400.00 to $425.00 and gave the company an “overweight” rating in a research report on Tuesday, November 22nd. UBS Group boosted their price target on United Rentals from $365.00 to $420.00 and gave the stock a “buy” rating in a report on Wednesday, November 16th. Morgan Stanley boosted their price target on United Rentals from $320.00 to $404.00 and gave the stock an “equal weight” rating in a report on Wednesday, December 14th. Finally, Wells Fargo & Company boosted their price target on United Rentals from $435.00 to $440.00 and gave the stock an “overweight” rating in a report on Tuesday, January 10th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $394.10.

Insider Activity at United Rentals

In other news, Director Jose B. Alvarez purchased 177 shares of the business’s stock in a transaction on Friday, November 18th. The shares were acquired at an average price of $344.65 per share, for a total transaction of $61,003.05. Following the completion of the acquisition, the director now owns 10,660 shares in the company, valued at $3,673,969. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.53% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Toroso Investments LLC boosted its holdings in United Rentals by 9.0% in the first quarter. Toroso Investments LLC now owns 797 shares of the construction company’s stock worth $283,000 after acquiring an additional 66 shares in the last quarter. Range Financial Group LLC bought a new position in United Rentals in the first quarter worth approximately $255,000. Quantbot Technologies LP bought a new position in United Rentals in the second quarter worth approximately $244,000. Centiva Capital LP bought a new position in United Rentals in the second quarter worth approximately $229,000. Finally, Fund Management at Engine No. 1 LLC purchased a new stake in shares of United Rentals in the first quarter worth approximately $218,000. Institutional investors own 89.65% of the company’s stock.

About United Rentals

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United Rentals, Inc engages in the equipment rental business. The company rents equipment to construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. It operates through the General Rentals and Specialty segments. The General Rentals segment includes the rental of general construction and industrial equipment, earthmoving equipment, material handling equipment, aerial work platforms, and general tools and light equipment.

Further Reading

Earnings History for United Rentals (NYSE:URI)

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