What The Financials Tell Us About United Rentals Inc. (URI)

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United Rentals Inc. (NYSE:URI) finished Friday with a subtraction of -$0.79 to close at $355.42, a downside of -0.22 percent. An average of 468,920 shares of common stock have been traded in the last five days. There was a gain of $4.54 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 622,535 shares traded, while the 50-day average volume stands at 692,668.

URI stock has increased by 0.68% in the last month. The company shares reached their 1-month lowest point of $343.21 on 12/22/22. With the stock rallying to its 52-week high on 12/14/22, shares of the company touched a low of $230.54 and a high of $373.91 in 52 weeks. It has reached a new high 9 times so far this year and achieved 6.96% or $23.13 in price. In spite of this, the price is down -4.94% from the 52-week high.


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Insider Transactions

URI stock investors should be aware that United Rentals Inc. (URI) stock had its last reported insider trading activity 142 days ago on Nov 18. In this transaction, the insider spent $102,637. EVP, CFO, Graziano Jessica, disposed of 977 shares at a price of $325.00 on Jul 29. The insider now owns more than $317,525 worth of shares. Prior to that, President & CEO Flannery Matthew John went on to Sale 19,076 shares at $300.00 each on Jul 28. An amount of $5,722,800 was transacted.

Valuation Metrics

United Rentals Inc. (URI) has a trailing price-to-earnings (P/E) ratio of 13.08. The stock’s beta is 1.81. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.19, the price-to-book (PB) ratio at 3.91, and the price-to-cash flow ratio at 6.74.

Financial Health

The quick ratio of United Rentals Inc. for the three months ended September 29 was 0.90, and the current ratio was 1.00, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.54 and a total debt to equity ratio of 1.56 for the quarter ending September 29. Its gross profit as reported stood at $3.85 billion compared to revenue of $9.72 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, United Rentals Inc.’s return on assets was 9.40%.

Earnings Surprise

For the three-month period that ended September 29, United Rentals Inc. had $9.75 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $606.0 million in the quarter, while revenues were grew 32.51%. The analyst consensus anticipated United Rentals Inc.’s latest quarter earnings to come in at $9.06 per share, but it turned out to be $9.27, a 2.30% surprise. For the quarter, EBITDA amounted to $1.48 billion. Shareholders own equity worth $69.31 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at United Rentals Inc. (URI) price momentum. RSI 9-day as of the close on 30 December was 51.15%, suggesting the stock is Neutral, with historical volatility in this time frame at 24.33%.

As of today, URI’s price is $355.48 +1.29% or $4.54 from its 5-day moving average. URI is currently trading -0.28% lower than its 20-day SMA and +11.11% higher than its 100-day SMA. However, the stock’s current price level is +23.90% above the SMA50 and +5.29% above the SMA200.

The stochastic %K and %D were 36.80% and 38.80%, respectively, and the average true range (ATR) was 9.57. With the 14-day stochastic at 39.78% and the average true range at 10.14, the RSI (14) stands at 53.14%. The stock has reached 0.06 on the 9-day MACD Oscillator while the 14-day reading was at -2.39.

Analyst Ratings

Bernstein downgraded United Rentals Inc. (NYSE: URI) to a an Underperform rating in its most recent analyst report. Previously, the stock was rated as a Mkt perform. The consensus rating for United Rentals Inc. (URI) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell URI, while 7 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 11 others rate it as a “buy”.

What is URI’s price target for the next 12 months?

Analysts predict a range of price targets between $269.00 and $773.00, with a median target of $415.00. Taking a look at these predictions, the average price target given by analysts for United Rentals Inc. (URI) stock is $415.88.

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