United Rentals (NYSE:URI) Shares Down 5.2% – Time to Sell?

Shares of United Rentals, Inc. (NYSE:URI) fell 5.2% on Tuesday . The company traded as low as $778.00 and last traded at $777.8270. 294,113 shares were traded during trading, a decline of 59% from the average session volume of 715,008 shares. The stock had previously closed at $820.68.

Wall Street Analyst Weigh In

URI has been the subject of a number of recent analyst reports. Citigroup dropped their price target on shares of United Rentals from $1,090.00 to $950.00 and set a “buy” rating for the company in a research report on Monday, February 2nd. Royal Bank Of Canada dropped their price objective on United Rentals from $1,123.00 to $1,041.00 and set an “outperform” rating for the company in a research note on Friday, January 30th. KeyCorp set a $950.00 target price on United Rentals in a research note on Friday, January 30th. JPMorgan Chase & Co. lowered their price target on United Rentals from $1,150.00 to $970.00 and set an “overweight” rating on the stock in a report on Friday, January 30th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of United Rentals in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, United Rentals has an average rating of “Moderate Buy” and a consensus price target of $925.59.

United Rentals Trading Down 3.1%

The company has a debt-to-equity ratio of 1.41, a current ratio of 0.94 and a quick ratio of 0.88. The stock has a 50-day moving average price of $871.41 and a two-hundred day moving average price of $883.86. The stock has a market cap of $47.67 billion, a PE ratio of 19.64, a price-to-earnings-growth ratio of 1.25 and a beta of 1.66.

United Rentals (NYSE:URI) last posted its earnings results on Wednesday, January 28th. The construction company reported $11.09 EPS for the quarter, missing analysts’ consensus estimates of $11.86 by ($0.77). The firm had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.24 billion. United Rentals had a return on equity of 30.35% and a net margin of 15.49%.United Rentals’s quarterly revenue was up 2.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $11.59 earnings per share. Sell-side analysts forecast that United Rentals, Inc. will post 44.8 earnings per share for the current fiscal year.

United Rentals Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Stockholders of record on Wednesday, February 11th were given a dividend of $1.97 per share. The ex-dividend date was Wednesday, February 11th. This represents a $7.88 dividend on an annualized basis and a dividend yield of 1.0%. This is an increase from United Rentals’s previous quarterly dividend of $1.79. United Rentals’s dividend payout ratio is currently 20.37%.

United Rentals declared that its board has approved a share repurchase plan on Wednesday, January 28th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the construction company to purchase up to 8.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at United Rentals

In related news, EVP William E. Grace sold 1,498 shares of the company’s stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $790.89, for a total transaction of $1,184,753.22. Following the sale, the executive vice president owned 6,872 shares of the company’s stock, valued at $5,434,996.08. This represents a 17.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Michael D. Durand sold 2,490 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $791.14, for a total transaction of $1,969,938.60. Following the transaction, the executive vice president owned 7,458 shares of the company’s stock, valued at $5,900,322.12. This trade represents a 25.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.53% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Aventura Private Wealth LLC bought a new stake in shares of United Rentals in the 4th quarter valued at approximately $27,000. Loomis Sayles & Co. L P bought a new position in shares of United Rentals during the 2nd quarter valued at approximately $28,000. Core Wealth Advisors LLC purchased a new stake in United Rentals during the 4th quarter valued at $28,000. MV Capital Management Inc. purchased a new stake in United Rentals during the 4th quarter valued at $28,000. Finally, Salomon & Ludwin LLC lifted its position 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 buying an additional 26 shares during the last quarter. Institutional investors own 96.26% of the company’s stock.

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.