It was reported on April 29, that Michael Durand, EVP at United Rentals URI executed a significant insider sell, according to an SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Durand sold 1,100 shares of United Rentals. The total transaction amounted to $688,908.
During Wednesday’s morning session, United Rentals shares down by 0.19%, currently priced at $629.0.
About United Rentals
United Rentals is the world’s largest equipment rental company. It principally operates in the United States and Canada, where it commands approximately 15% share in a highly fragmented market. It serves three end markets: general industrial, commercial construction, and residential construction. Like its peers, United Rentals historically has provided its customers with equipment that was intermittently used, such as aerial equipment and portable generators. As the company has grown organically and through hundreds of acquisitions since it went public in 1997, its catalog (fleet size of $21 billion) now includes a range of specialty equipment and other items that can be rented for indefinite periods. 2024 revenue totaled $15.3 billion.
United Rentals: Financial Performance Dissected
Revenue Growth: United Rentals displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 6.71%. This indicates a notable increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Profitability Metrics:
-
Gross Margin: The company sets a benchmark with a high gross margin of 36.46%, reflecting superior cost management and profitability compared to its peers.
-
Earnings per Share (EPS): United Rentals’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 7.92.
Debt Management: With a high debt-to-equity ratio of 1.59, United Rentals faces challenges in effectively managing its debt levels, indicating potential financial strain.
Valuation Overview:
-
Price to Earnings (P/E) Ratio: The P/E ratio of 16.34 is lower than the industry average, implying a discounted valuation for United Rentals’s stock.
-
Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.67 as compared to the industry average, the stock might be considered overvalued based on sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): United Rentals’s EV/EBITDA ratio, lower than industry averages at 7.7, indicates attractively priced shares.
Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Navigating the Impact of Insider Transactions on Investments
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
A Deep Dive into Insider Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of United Rentals’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Add Comment