Capital Group Private Client Services Inc. Cuts Stock Position in United Rentals, Inc. $URI

Capital Group Private Client Services Inc. cut its position in United Rentals, Inc. (NYSE:URI) by 51.7% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 18,845 shares of the construction company’s stock after selling 20,133 shares during the quarter. Capital Group Private Client Services Inc.’s holdings in United Rentals were worth $17,991,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of URI. Bank of Montreal Can raised its stake in shares of United Rentals by 6.8% during the 3rd quarter. Bank of Montreal Can now owns 114,507 shares of the construction company’s stock worth $109,316,000 after acquiring an additional 7,278 shares in the last quarter. Legal & General Group Plc boosted its stake in United Rentals by 0.5% in the third quarter. Legal & General Group Plc now owns 405,245 shares of the construction company’s stock valued at $386,871,000 after acquiring an additional 2,213 shares in the last quarter. PFG Advisors boosted its stake in United Rentals by 11.7% in the third quarter. PFG Advisors now owns 953 shares of the construction company’s stock valued at $909,000 after acquiring an additional 100 shares in the last quarter. Rathbones Group PLC purchased a new position in United Rentals in the third quarter worth $242,000. Finally, Parallel Advisors LLC grew its holdings in United Rentals by 1.9% in the third quarter. Parallel Advisors LLC now owns 1,465 shares of the construction company’s stock worth $1,399,000 after purchasing an additional 28 shares during the last quarter. 96.26% of the stock is owned by hedge funds and other institutional investors.

United Rentals Price Performance

Shares of URI opened at $820.50 on Tuesday. 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 company’s fifty day moving average price is $872.83 and its 200-day moving average price is $885.68. United Rentals, Inc. has a 1-year low of $525.91 and a 1-year high of $1,021.47. The firm has a market capitalization of $51.69 billion, a PE ratio of 21.21, a price-to-earnings-growth ratio of 1.31 and a beta of 1.66.

United Rentals (NYSE:URI) last issued its quarterly 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 for the quarter, compared to analyst estimates of $4.24 billion. United Rentals had a return on equity of 30.35% and a net margin of 15.49%.The business’s revenue was up 2.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $11.59 EPS. On average, equities research analysts predict that United Rentals, Inc. will post 44.8 EPS for the current year.

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

United Rentals Increases Dividend

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

Insider Activity at United Rentals

In other news, 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 value of $1,969,938.60. Following the sale, the executive vice president owned 7,458 shares in the company, valued at $5,900,322.12. This represents a 25.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP William E. Grace sold 1,498 shares of the business’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 transaction, 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 disclosure for this sale is available in the SEC filing. Insiders own 0.51% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Sanford C. Bernstein set a $965.00 price objective on United Rentals in a report on Friday, January 30th. Weiss Ratings restated a “hold (c+)” rating on shares of United Rentals in a research note on Wednesday, January 21st. Royal Bank Of Canada reduced their target price on United Rentals from $1,123.00 to $1,041.00 and set an “outperform” rating on the stock in a research report on Friday, January 30th. JPMorgan Chase & Co. decreased their price target on United Rentals from $1,150.00 to $970.00 and set an “overweight” rating for the company in a research note on Friday, January 30th. Finally, KeyCorp set a $950.00 price target on United Rentals in a report on Friday, January 30th. 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 issued a Sell rating to the company’s stock. According to MarketBeat.com, United Rentals currently has a consensus rating of “Moderate Buy” and an average target price of $925.59.

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.