United Rentals (NYSE:URI) Shares Gap Up Following Dividend Announcement

Shares of United Rentals, Inc. (NYSE:URI) gapped up before the market opened on Thursday following a dividend announcement from the company. The stock had previously closed at $589.21, but opened at $613.96. United Rentals shares last traded at $631.29, with a volume of 265,115 shares changing hands.

The newly announced dividend which will be paid on Wednesday, May 28th. Shareholders of record on Wednesday, May 14th will be given a $1.79 dividend. This represents a $7.16 dividend on an annualized basis and a dividend yield of 1.13%. The ex-dividend date of this dividend is Wednesday, May 14th. United Rentals’s dividend payout ratio is presently 18.54%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on URI shares. JPMorgan Chase & Co. cut their target price on United Rentals from $1,000.00 to $750.00 and set an “overweight” rating on the stock in a research report on Monday, April 14th. Evercore ISI reduced their price objective on shares of United Rentals from $1,004.00 to $974.00 and set an “outperform” rating for the company in a research report on Wednesday, February 19th. Robert W. Baird upped their target price on shares of United Rentals from $535.00 to $571.00 and gave the company a “neutral” rating in a report on Friday. Sanford C. Bernstein upgraded shares of United Rentals from an “underperform” rating to a “market perform” rating and cut their price target for the stock from $705.00 to $666.00 in a research note on Tuesday, March 25th. Finally, Bank of America decreased their price objective on shares of United Rentals from $850.00 to $750.00 and set a “buy” rating for the company in a research note on Friday, March 21st. Two analysts have rated the stock with a sell rating, four have issued a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat, United Rentals has a consensus rating of “Moderate Buy” and a consensus target price of $727.43.

United Rentals Price Performance

The company has a debt-to-equity ratio of 1.42, a current ratio of 0.98 and a quick ratio of 0.92. The company has a 50 day moving average price of $615.93 and a 200 day moving average price of $727.00. The firm has a market cap of $41.47 billion, a PE ratio of 16.38, a PEG ratio of 1.43 and a beta of 1.72.

United Rentals (NYSE:URI) last announced its quarterly earnings data on Wednesday, April 23rd. The construction company reported $8.86 EPS for the quarter, missing analysts’ consensus estimates of $8.92 by ($0.06). The firm had revenue of $3.72 billion for the quarter, compared to analysts’ expectations of $3.61 billion. United Rentals had a return on equity of 34.21% and a net margin of 16.78%. Sell-side analysts expect that United Rentals, Inc. will post 44.8 EPS for the current fiscal year.

Insider Activity at United Rentals

In other United Rentals news, CFO William E. Grace sold 1,100 shares of the firm’s stock in a transaction on Monday, February 24th. The stock was sold at an average price of $638.10, for a total value of $701,910.00. Following the completion of the sale, the chief financial officer now owns 6,880 shares of the company’s stock, valued at approximately $4,390,128. This trade represents a 13.78 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.53% of the stock is owned by insiders.

Hedge Funds Weigh In On United Rentals

Large investors have recently made changes to their positions in the stock. Norges Bank purchased a new stake in shares of United Rentals during the 4th quarter worth approximately $695,716,000. GAMMA Investing LLC boosted its position in United Rentals by 77,674.5% during the first quarter. GAMMA Investing LLC now owns 887,407 shares of the construction company’s stock worth $556,138,000 after purchasing an additional 886,266 shares in the last quarter. Leigh Baldwin & CO. LLC purchased a new stake in United Rentals during the fourth quarter worth $330,989,000. Capital World Investors increased its position in shares of United Rentals by 17.1% in the fourth quarter. Capital World Investors now owns 2,221,228 shares of the construction company’s stock valued at $1,564,722,000 after buying an additional 323,636 shares in the last quarter. Finally, Capital International Investors increased its position in shares of United Rentals by 41.0% in the fourth quarter. Capital International Investors now owns 1,051,365 shares of the construction company’s stock valued at $740,624,000 after buying an additional 305,491 shares in the last quarter. Hedge funds and other institutional investors own 96.26% of the company’s stock.

United Rentals Company Profile

United Rentals, Inc, through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.