United Rentals (NYSE:URI) Shares Gap Up – Should You Buy?

Shares of United Rentals, Inc. (NYSE:URI) gapped up before the market opened on Tuesday . The stock had previously closed at $689.15, but opened at $727.00. United Rentals shares last traded at $718.48, with a volume of 170,327 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on URI shares. Argus increased their target price on shares of United Rentals from $840.00 to $880.00 and gave the company a “buy” rating in a research report on Wednesday, November 20th. Bank of America raised their price objective on United Rentals from $800.00 to $910.00 and gave the stock a “buy” rating in a research report on Thursday, October 24th. Robert W. Baird raised United Rentals from an “underperform” rating to a “neutral” rating and set a $658.00 target price on the stock in a research report on Tuesday. Citigroup raised their price target on United Rentals from $955.00 to $985.00 and gave the stock a “buy” rating in a report on Monday, December 9th. Finally, Barclays upped their price objective on shares of United Rentals from $400.00 to $565.00 and gave the company an “underweight” rating in a report on Friday, October 25th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and ten have given a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $817.75.

United Rentals Price Performance

The company has a 50-day moving average of $787.08 and a 200 day moving average of $759.44. The company has a quick ratio of 0.77, a current ratio of 0.82 and a debt-to-equity ratio of 1.38. The stock has a market capitalization of $47.04 billion, a PE ratio of 18.72, a PEG ratio of 1.83 and a beta of 1.69.

United Rentals (NYSE:URI) last issued its quarterly earnings data on Wednesday, October 23rd. The construction company reported $11.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $12.49 by ($0.69). The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $4.01 billion. United Rentals had a return on equity of 34.73% and a net margin of 17.12%. The firm’s revenue for the quarter was up 6.0% compared to the same quarter last year. During the same period in the previous year, the business posted $11.73 earnings per share. Sell-side analysts predict that United Rentals, Inc. will post 43.46 EPS for the current year.

United Rentals Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Wednesday, November 13th were paid a dividend of $1.63 per share. The ex-dividend date of this dividend was Wednesday, November 13th. This represents a $6.52 annualized dividend and a yield of 0.91%. United Rentals’s payout ratio is 17.03%.

Insider Activity at United Rentals

In other news, SVP Anthony S. Leopold sold 900 shares of the stock in a transaction dated Monday, October 28th. The stock was sold at an average price of $823.24, for a total value of $740,916.00. Following the transaction, the senior vice president now owns 2,044 shares in the company, valued at approximately $1,682,702.56. This represents a 30.57 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.53% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On United Rentals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in URI. Thurston Springer Miller Herd & Titak Inc. boosted its holdings in shares of United Rentals by 3.3% in the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 2,535 shares of the construction company’s stock valued at $1,786,000 after buying an additional 80 shares in the last quarter. Park Avenue Securities LLC boosted its holdings in shares of United Rentals by 30.2% in the fourth quarter. Park Avenue Securities LLC now owns 1,730 shares of the construction company’s stock valued at $1,219,000 after acquiring an additional 401 shares in the last quarter. Assenagon Asset Management S.A. lifted its position in United Rentals by 74.4% in the fourth quarter. Assenagon Asset Management S.A. now owns 18,156 shares of the construction company’s stock valued at $12,790,000 after purchasing an additional 7,748 shares during the period. Board of the Pension Protection Fund purchased a new stake in United Rentals in the 4th quarter valued at approximately $634,000. Finally, Fifth Third Wealth Advisors LLC increased its position in United Rentals by 2.5% during the 4th quarter. Fifth Third Wealth Advisors LLC now owns 776 shares of the construction company’s stock worth $547,000 after purchasing an additional 19 shares during the period. 96.26% of the stock is owned by institutional investors and hedge funds.

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.