United Rentals (NYSE:URI) Shares Gap Down After Earnings Miss

United Rentals, Inc. (NYSE:URI)’s stock price gapped down prior to trading 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.

The construction company reported $11.09 earnings per share for the quarter, missing the consensus estimate of $11.86 by ($0.77). United Rentals had a return on equity of 31.30% and a net margin of 15.83%.The company had revenue of $4.21 billion during the quarter, compared to the consensus estimate of $4.24 billion. During the same quarter last year, the company posted $11.59 earnings per share. The firm’s revenue for the quarter was up 2.8% on a year-over-year basis.

United Rentals Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, February 25th. Stockholders of record on Wednesday, February 11th will be issued a $1.97 dividend. This represents a $7.88 annualized dividend and a dividend yield of 1.0%. This is a positive change from United Rentals’s previous quarterly dividend of $1.79. The ex-dividend date of this dividend is Wednesday, February 11th. United Rentals’s payout ratio is presently 18.42%.

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

United Rentals News Roundup

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

• Positive Sentiment: Board raises quarterly cash dividend 10% to $1.97/share (ex‑dividend Feb 11, payable Feb 25), signaling shareholder return focus and confidence in cash flow. Read More.
• Positive Sentiment: Board authorized a $5.0 billion share repurchase program (≈8.7% of shares outstanding), which typically supports the stock and indicates management believes shares may be undervalued. Read More.
• Positive Sentiment: Company reported record 2025 results (full year and Q4) and set a 2026 outlook, highlighting underlying business strength despite the quarter’s miss. Read More.
• Neutral Sentiment: FY‑2026 revenue guidance set at $16.8B–$17.3B versus consensus ≈ $17.1B — range includes Street view, so guidance is broadly in line but not a clear beat. EPS guidance details were not highlighted in the summary. Read More.
• Negative Sentiment: Q4 results missed estimates: EPS $11.09 vs. consensus ~$11.86 and revenue $4.21B vs. ~$4.24B — the shortfall (and EPS decline vs. year-ago $11.59) is the primary driver of downward pressure. Read More.
• Negative Sentiment: Market reaction: multiple outlets report the stock fell on the earnings/revenue miss despite record-year results and capital-return actions, amplifying near‑term selling pressure. Read More.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Truist Financial decreased 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 report on Thursday, December 18th. UBS Group upgraded shares of United Rentals from a “neutral” rating to a “buy” rating and set a $1,025.00 price objective for the company in a research report on Sunday, January 4th. Royal Bank Of Canada set a $1,123.00 price target on shares of United Rentals in a research report on Friday, October 24th. Wells Fargo & Company raised their price target on shares of United Rentals from $995.00 to $1,071.00 and gave the stock an “overweight” rating in a report on Friday, January 23rd. Finally, Citigroup boosted their target price on United Rentals from $950.00 to $1,090.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $970.76.

Institutional Investors Weigh In On United Rentals

Several hedge funds have recently modified their holdings of the stock. Optas LLC raised its holdings in shares of 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 purchasing an additional 10 shares during the period. CreativeOne Wealth LLC grew its stake in shares of United Rentals by 0.5% in the 2nd quarter. CreativeOne Wealth LLC now owns 2,283 shares of the construction company’s stock worth $1,720,000 after purchasing an additional 11 shares during the last quarter. OFI Invest Asset Management grew its holdings in shares of United Rentals by 6.7% in 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 during the last quarter. Gleason Group Inc. raised its stake in United Rentals by 4.3% during the 4th quarter. Gleason Group Inc. now owns 269 shares of the construction company’s stock valued at $218,000 after purchasing 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 buying an additional 11 shares during the period. 96.26% of the stock is currently owned by hedge funds and other institutional investors.

United Rentals Trading Down 14.1%

The company has a 50 day moving average of $849.72 and a 200 day moving average of $888.21. The firm has a market cap of $49.36 billion, a P/E ratio of 19.95, a PEG ratio of 1.89 and a beta of 1.69. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.84 and a current ratio of 0.90.

About United Rentals

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.