United Rentals EVP Sells Nearly $2 Million in Company Stock

Michael Durand, the Executive Vice President of United Rentals, Inc. (NYSE: URI), sold $1,969,938.60 worth of company stock on February 2, 2024. This transaction involved the sale of 2,490 shares at an average price of $791.14 per share. Following this sale, Durand holds 7,458 shares of United Rentals, valued at approximately $5,900,322.12, marking a 25.03% reduction in his holdings.

The details of the transaction were disclosed in a filing with the Securities and Exchange Commission (SEC), accessible through official channels.

United Rentals Stock Performance and Financial Health

On Thursday, the stock of United Rentals opened at $847.59, reflecting a notable increase of 6.9%. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.88, and a current ratio of 0.94. The 50-day simple moving average stands at $849.25, while the 200-day simple moving average is $887.87. Over the past year, United Rentals has seen a 52-week low of $525.91 and a high of $1,021.47. The company boasts a market capitalization of $53.40 billion, with a price-to-earnings (PE) ratio of 21.91.

In its latest quarterly earnings report released on January 28, 2024, United Rentals reported earnings per share (EPS) of $11.09, falling short of the consensus estimate of $11.86 by $0.77. The company’s revenue for the quarter was $4.21 billion, slightly below analyst expectations of $4.24 billion. Despite this, revenue increased by 2.8% compared to the same period last year, when the company posted an EPS of $11.59. Analysts predict that United Rentals will achieve $44.80 EPS for the current fiscal year.

Corporate Developments and Analyst Ratings

In a significant move, United Rentals’ Board of Directors announced a $5 billion share buyback program on the same day as the earnings report. This program allows the company to repurchase up to 8.7% of its outstanding shares in the open market. Such buyback initiatives typically indicate that a company’s board believes its stock is undervalued.

Recent trading activity has seen various hedge funds adjusting their stakes in United Rentals. Notable transactions include Aventura Private Wealth LLC acquiring a new stake worth $27,000 in the fourth quarter, and Loomis Sayles & Co. L.P. investing around $28,000 in the second quarter. Additionally, Salomon & Ludwin LLC significantly increased its holdings by 650% in the third quarter.

Analyst opinions on United Rentals are largely optimistic. KeyCorp recently set a target price of $950.00, while UBS Group upgraded the stock from “neutral” to “buy,” establishing a target price of $1,025.00. Overall, analysts have assigned an average rating of “Moderate Buy” with a price target of $925.59.

United Rentals, headquartered in Stamford, Connecticut, specializes in providing equipment rental solutions across various sectors, including construction and industrial operations. The company offers a wide range of equipment, enabling clients to optimize project needs without the burden of ownership costs.