Traub Capital Management LLC has taken a significant step by acquiring a new stake in United Rentals, Inc. (NYSE:URI), investing approximately $833,000 during the second quarter of 2023. This investment involved purchasing 1,106 shares of the construction equipment rental company, according to the firm’s latest Form 13F filing with the Securities and Exchange Commission (SEC).
Several other institutional investors have also made moves concerning United Rentals in recent months. For instance, Flaharty Asset Management LLC entered a new position valued at around $30,000 in the first quarter. Maseco LLP followed suit by investing $32,000 in the second quarter, while Trust Co. of Toledo NA OH acquired shares worth $38,000 during the same period. Clal Insurance Enterprises Holdings Ltd significantly increased its stake by 560% in the first quarter, now owning 66 shares valued at $41,000 after adding 56 shares. Hantz Financial Services Inc. also expanded its position by 103.7% in the second quarter, holding 55 shares worth $42,000.
Hedge funds and institutional investors collectively own 96.26% of United Rentals’ stock, underscoring significant confidence in the company.
Analysts Update Ratings and Price Targets
United Rentals has attracted attention from various analysts who have recently revised their ratings and price targets. Weiss Ratings maintained a “hold (C+)” rating in a report dated October 8, 2023. Morgan Stanley raised its price target from $702.00 to $955.00, issuing an “overweight” rating on July 28. Evercore ISI reiterated an “outperform” rating on August 19, while BNP Paribas set a target price of $900.00 with a “neutral” rating on September 16. Additionally, Baird R W upgraded the stock from a “hold” to a “strong-buy” rating on October 1.
Currently, two analysts have assigned a “Strong Buy” rating, thirteen rate it as a “Buy,” five analysts suggest a “Hold,” and one analyst recommends a “Sell.” According to MarketBeat, United Rentals holds an average rating of “Moderate Buy” with a price target of $975.61.
Stock Performance and Financial Results
As of October 22, 2023, United Rentals stock opened at $799.86, reflecting a 0.8% decrease. The stock has a 50-day moving average of $925.53 and a 200-day moving average of $844.02. Over the past year, shares have fluctuated between a low of $525.91 and a high of $1,021.47. The company’s current market capitalization stands at $50.90 billion, with a price-to-earnings ratio of 20.57 and a beta of 1.74.
United Rentals recently reported its quarterly earnings, revealing an EPS of $11.70 for the quarter ending October 22, falling short of the consensus estimate of $12.43 by $0.73. Although the company’s revenue was $4.23 billion, exceeding analyst expectations of $4.16 billion, it still marked a 5.9% increase compared to the same quarter last year. The return on equity was reported at 31.30% with a net margin of 15.83%.
United Rentals has provided its guidance for fiscal year 2025, anticipating an EPS of $44.8.
Additionally, the company announced a quarterly dividend of $1.79 per share, set to be paid on November 26, 2023. Stockholders of record as of November 12 will receive this dividend, which translates to an annualized payout of $7.16 and a dividend yield of 0.9%. United Rentals currently has a payout ratio of 18.42%.
United Rentals, Inc. operates as a leading equipment rental company through its subsidiaries and is divided into two segments: General Rentals and Specialty. The General Rentals segment encompasses various construction and industrial equipment, catering to construction firms, manufacturers, utilities, municipalities, homeowners, and government entities.
