United Rentals Inc. (NYSE: URI) shares slid back in value Friday Dec 2 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower on Friday, with major indexes on track for a weekly decline.
The Dow Jones Industrial Average DJIA, -0.14% fell 23 points, or 0.1%, to 19,169, while the S&P 500 SPX, +0.09% lost 1.2 point to 2,190, a move of less than 0.1%. The Nasdaq Composite COMP, -0.15% fell 5.3 points, or 0.1%, to 5,247.
Analysts at Vertical Research upgraded shares of United Rentals Inc. (NYSE: URI) from Hold to Buy today. With a rating of Buy on the stock, the company has a 52-week high of $105.70. A number of other analysts have spoken on the stock recently, and United Rentals Inc. has secured a consensus one-year price target of $84.93, less than the opening price of $103.89, a difference of 8.17 percent. Share prices often trend to the upside on recommendations and new price targets of professional brokerage firms.
United Rentals Inc. (NYSE: URI) shares last traded at $103.95, a dip of $0.34 per share or -0.33% from the previous closing price. Opening at $103.89, they fluctuated from $103.25 and $104.16 throughout the day.
United Rentals Inc. (NYSE: URI) now has a market cap of 8.76B.
United Rentals Inc. (NYSE: URI) Average Daily Trading Volume
The stock’s average daily volume is 2,190,480 shares out of a total float 83,784,000 and some 223,799 shares traded hands yesterday, below normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to determine substantial volume growth or circulation by institutional investors.
While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have substantial teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you are considering.
United Rentals Inc. (NYSE: URI) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
Traders are able to make make more impactful decisions on trades when they track the activity of professional investors.
With that in mind, United Rentals Inc. (NYSE: URI) now has a 50-day MA of $84.33 and 200-day MA of $76.80. It has traded in a 52-week range between $41.90 – 105.70 and today’s last price is 1.66%% lower than the 52 week high of $105.70.
Earnings growth is a crucial factor to research when investing in stocks and investors identify companies that have been successful at growing their earnings by at least 25% over a 3 year period.
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