United Rentals, Inc. (URI) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of United Rentals, Inc. (NYSE:URI) from a buy rating to a hold rating in a research report report published on Monday morning.
According to Zacks, “United Rentals’ shares have gained 78.9% in the last one year, outperforming the industry it belongs to. The company’s main strategy is to improve profitability of its core equipment rental business through revenue growth, margin expansion and operational efficiencies. In particular, the company’s strategy calls for the implementation of Project XL, which is a set of eight specific work streams focused on driving profitable growth through revenue opportunities and generating incremental profitability through cost savings. United Rentals is focused on expanding its geographic borders and product portfolio through acquisitions and joint ventures. The addition of NES Rentals is expected to significantly drive the stock’s performance in the upcoming quarters as well. However, a decline in rental rates raises concern. Rental rates fell 2.2% in 2016 and 1.2% in the first half of 2017 on a year-over-year basis, respectively.”
A number of other brokerages also recently issued reports on URI. Jefferies Group LLC reiterated a buy rating and set a $150.00 price objective on shares of United Rentals in a research note on Thursday, September 21st. ValuEngine upgraded United Rentals from a buy rating to a strong-buy rating in a research note on Friday, September 1st. UBS AG reiterated a neutral rating and set a $125.00 price objective on shares of United Rentals in a research note on Sunday, August 20th. Stifel Nicolaus upgraded United Rentals from a hold rating to a buy rating and set a $133.00 price objective for the company in a research note on Friday, August 18th. Finally, BidaskClub downgraded United Rentals from a buy rating to a hold rating in a research note on Friday, August 11th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, ten have given a buy rating and two have issued a strong buy rating to the stock. United Rentals currently has a consensus rating of Buy and a consensus price target of $127.85.
United Rentals (URI) opened at 135.69 on Monday. United Rentals has a 12 month low of $70.58 and a 12 month high of $137.12. The company has a market cap of $11.47 billion, a price-to-earnings ratio of 19.71 and a beta of 2.42. The firm’s 50-day moving average is $117.55 and its 200-day moving average is $115.67.
United Rentals (NYSE:URI) last released its quarterly earnings results on Wednesday, July 19th. The construction company reported $2.37 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $2.28 by $0.09. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.55 billion. United Rentals had a return on equity of 46.01% and a net margin of 9.86%. The business’s quarterly revenue was up 12.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.06 EPS. On average, analysts anticipate that United Rentals will post $9.91 EPS for the current fiscal year.
In other United Rentals news, CFO William B. Plummer sold 5,301 shares of the company’s stock in a transaction on Friday, September 15th. The stock was sold at an average price of $128.26, for a total value of $679,906.26. Following the transaction, the chief financial officer now owns 38,055 shares of the company’s stock, valued at approximately $4,880,934.30. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Michael Kneeland sold 30,000 shares of the company’s stock in a transaction on Friday, July 21st. The shares were sold at an average price of $120.77, for a total value of $3,623,100.00. Following the completion of the transaction, the insider now directly owns 302,292 shares in the company, valued at approximately $36,507,804.84. The disclosure for this sale can be found here. Corporate insiders own 1.20% of the company’s stock.
Institutional investors have recently made changes to their positions in the business. Aviva PLC grew its position in United Rentals by 4.5% in the 2nd quarter. Aviva PLC now owns 49,326 shares of the construction company’s stock valued at $5,560,000 after acquiring an additional 2,140 shares during the last quarter. Atwood & Palmer Inc. bought a new position in United Rentals in the 2nd quarter valued at $6,195,000. American Century Companies Inc. grew its position in United Rentals by 111.5% in the 2nd quarter. American Century Companies Inc. now owns 630,058 shares of the construction company’s stock valued at $71,014,000 after acquiring an additional 332,211 shares during the last quarter. Schwab Charles Investment Management Inc. grew its position in United Rentals by 4.5% in the 1st quarter. Schwab Charles Investment Management Inc. now owns 390,497 shares of the construction company’s stock valued at $48,832,000 after acquiring an additional 16,701 shares during the last quarter. Finally, 1060 Capital LLC bought a new position in United Rentals in the 2nd quarter valued at $29,797,000. 93.66% of the stock is currently owned by institutional investors.
United Rentals Company Profile
United Rentals, Inc is a holding company. The Company is an equipment rental company, which operates throughout the United States and Canada. It operates through two segments: general rentals, and trench, power and pump. The general rentals segment includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities.
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