United Rentals (NYSE:URI) Shares Gap Down Following Weak Earnings

Posted by Defense World Staff on Apr 28th, 2023

United Rentals, Inc. (NYSE:URI – Get Rating)’s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $375.01, but opened at $356.00. United Rentals shares last traded at $351.52, with a volume of 547,453 shares traded.

The construction company reported $7.95 earnings per share for the quarter, missing analysts’ consensus estimates of $8.12 by ($0.17). The company had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.17 billion. United Rentals had a net margin of 18.08% and a return on equity of 36.12%. The business’s revenue was up 30.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.73 earnings per share.

Analyst Upgrades and Downgrades

URI has been the subject of a number of research analyst reports. Credit Suisse Group initiated coverage on United Rentals in a report on Wednesday, February 8th. They set an “outperform” rating and a $544.00 price target for the company. Deutsche Bank Aktiengesellschaft boosted their price target on United Rentals from $399.00 to $406.00 and gave the stock a “hold” rating in a report on Wednesday, April 12th. KeyCorp boosted their price target on United Rentals from $425.00 to $515.00 and gave the stock an “overweight” rating in a report on Friday, January 27th. Argus boosted their price target on United Rentals from $360.00 to $475.00 in a report on Tuesday, January 31st. Finally, Barclays boosted their price target on United Rentals from $300.00 to $350.00 and gave the stock an “underweight” rating in a report on Friday, January 27th. Three investment analysts have rated the stock with a sell rating, three have given a hold rating and seven have assigned a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $433.62.

Insider Buying and Selling at United Rentals

In other United Rentals news, CEO Matthew John Flannery sold 12,000 shares of the company’s stock in a transaction dated Thursday, March 9th. The stock was sold at an average price of $477.99, for a total value of $5,735,880.00. Following the sale, the chief executive officer now owns 101,276 shares in the company, valued at approximately $48,408,915.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On United Rentals

Institutional investors have recently made changes to their positions in the stock. IAG Wealth Partners LLC bought a new stake in shares of United Rentals during the 1st quarter valued at about $30,000. EverSource Wealth Advisors LLC boosted its position in shares of United Rentals by 44.8% during the 4th quarter. EverSource Wealth Advisors LLC now owns 84 shares of the construction company’s stock valued at $30,000 after purchasing an additional 26 shares in the last quarter. Benjamin F. Edwards & Company Inc. boosted its position in shares of United Rentals by 62.3% during the 4th quarter. Benjamin F. Edwards & Company Inc. now owns 86 shares of the construction company’s stock valued at $31,000 after purchasing an additional 33 shares in the last quarter. AdvisorNet Financial Inc boosted its position in shares of United Rentals by 86.3% during the 4th quarter. AdvisorNet Financial Inc now owns 95 shares of the construction company’s stock valued at $34,000 after purchasing an additional 44 shares in the last quarter. Finally, Massmutual Trust Co. FSB ADV boosted its position in shares of United Rentals by 44.8% during the 1st quarter. Massmutual Trust Co. FSB ADV now owns 97 shares of the construction company’s stock valued at $38,000 after purchasing an additional 30 shares in the last quarter. Institutional investors own 89.65% of the company’s stock.

United Rentals Trading Down 4.6 %

The company has a current ratio of 1.11, a quick ratio of 1.02 and a debt-to-equity ratio of 1.59. The firm has a 50-day moving average of $405.01 and a 200 day moving average of $376.96. The company has a market cap of $24.82 billion, a P/E ratio of 12.02, a price-to-earnings-growth ratio of 0.55 and a beta of 1.82.

United Rentals Company Profile

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United Rentals, Inc engages in the equipment rental business. It operates through the General Rentals and Specialty segments. The General Rentals segment includes the rental of construction, aerial and industrial equipment, general tools and light equipment, and related services and activities. The Specialty segment focuses on the rental of specialty construction products such as trench safety equipment, power and HVAC equipment, fluid solutions equipment, mobile storage equipment and modular office space.