Zacks Investment Research cut shares of United Rentals (NYSE:URI) from a buy rating to a hold rating in a research note published on Saturday, January 6th.
According to Zacks, “United Rentals’ shares have gained 57.3% in the last one year, outperforming its 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 0.7% in the first nine months of 2017 on a year-over-year basis, respectively.”
A number of other research firms have also issued reports on URI. Bank of America upgraded United Rentals to a buy rating and boosted their price objective for the company from $165.00 to $195.00 in a research note on Tuesday, December 19th. Stifel Nicolaus reiterated a buy rating and set a $171.00 price objective on shares of United Rentals in a research report on Thursday, December 14th. Barclays assumed coverage on United Rentals in a research report on Tuesday, December 12th. They set an underweight rating and a $150.00 price objective on the stock. Buckingham Research assumed coverage on United Rentals in a research report on Tuesday, November 21st. They issued a neutral rating and a $154.00 price objective on the stock. Finally, Citigroup boosted their price objective on United Rentals from $165.00 to $170.00 and gave the company a buy rating in a research report on Friday, October 20th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, eight have given a buy rating and two have given a strong buy rating to the company’s stock. United Rentals currently has a consensus rating of Buy and an average price target of $159.68.
United Rentals (NYSE:URI) last posted its quarterly earnings data on Wednesday, October 18th. The construction company reported $3.25 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $2.98 by $0.27. United Rentals had a return on equity of 44.81% and a net margin of 9.64%. The business had revenue of $1.77 billion for the quarter, compared to analysts’ expectations of $1.72 billion. During the same quarter in the previous year, the firm earned $2.58 earnings per share. The business’s revenue was up 17.1% on a year-over-year basis. equities analysts expect that United Rentals will post 10.53 EPS for the current year.
United Rentals declared that its Board of Directors has initiated a stock buyback plan on Wednesday, October 18th that allows the company to buyback $373.00 million in shares. This buyback authorization allows the construction company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.
In other United Rentals news, Director Filippo Passerini sold 3,308 shares of the business’s stock in a transaction that occurred on Monday, October 23rd. The stock was sold at an average price of $143.24, for a total transaction of $473,837.92. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Donald C. Roof sold 4,500 shares of the business’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $143.95, for a total value of $647,775.00. The disclosure for this sale can be found here. Insiders have sold 91,760 shares of company stock valued at $13,873,111 in the last 90 days. Company insiders own 1.20% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Fieldpoint Private Securities LLC purchased a new stake in shares of United Rentals in the third quarter valued at approximately $119,000. Americafirst Capital Management LLC purchased a new stake in shares of United Rentals in the second quarter valued at approximately $151,000. First Manhattan Co. boosted its holdings in shares of United Rentals by 42.9% in the third quarter. First Manhattan Co. now owns 1,415 shares of the construction company’s stock valued at $196,000 after purchasing an additional 425 shares during the period. Trexquant Investment LP purchased a new stake in shares of United Rentals in the third quarter valued at approximately $202,000. Finally, Calamos Advisors LLC purchased a new stake in shares of United Rentals in the third quarter valued at approximately $208,000. Hedge funds and other institutional investors own 91.37% of the company’s stock.
ILLEGAL ACTIVITY WARNING: This piece of content was first posted by Week Herald and is the property of of Week Herald. If you are viewing this piece of content on another website, it was illegally copied and reposted in violation of international copyright laws. The original version of this piece of content can be accessed at https://weekherald.com/2018/01/13/zacks-investment-research-downgrades-united-rentals-uri-to-hold.html.
About United Rentals
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for United Rentals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Rentals and related companies with MarketBeat.com's FREE daily email newsletter.