United Rentals, Inc. (URI) Shares Slip, Investors Watching Closely, Here is Why

United Rentals, Inc. (NYSE: URI) shares fell on Thursday February 2 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, The Dow Jones Industrial Average DJIA, -0.10% fell 34 points, or 0.2%, to 19,858. The S&P 500 SPX, -0.11% lost 4 points to 2,276, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.05% slid 16 points, or 0.3%, to 5,626. Among the most actively traded Nasdaq stocks was Facebook Inc FB, +0.31% which fell 0.7% a day after it reported its quarterly results.

Analysts at Argus downgraded shares of United Rentals, Inc. (NYSE: URI) from Buy to Hold in a research note to investors today. With a rating of Hold on the stock, the company has a 52-week high of $131.19. The one-year price target of $122.36 is less than the opening price of $127.34, that has caused a number of other analysts to comment on the company recently. Downgrades are more likely when analysts feel that the future prospects for the security have diminished from the initial recommendation, often because of an important and integral change in the company’s operations, future vision or industry.

Yesterday United Rentals, Inc. (NYSE: URI) shares last traded at $126.65, which represents a drop of $3.24 from the previous closing price. Opening at $127.34, they fluctuated from $126.28 and $128.20 throughout the day.

United Rentals, Inc. (NYSE: URI) currently has a market cap of 10.68B.

United Rentals, Inc. (NYSE: URI) Average Daily Trading Volume

The stock’s average daily volume is 2,057,680 shares out of a total float 83,881,000 and some 357,145 shares traded hands yesterday, 76 percent below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are researching.

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.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

Trades for United Rentals, Inc. (NYSE: URI) have ranged from $41.90 – 131.19, and the stock now has a 50-day MA of $111.42 and 200-day MA of $89.56. Today’s last price is 3.46%% under the 52 week high of $131.19.

Earnings growth is a crucial factor to consider when investing in stocks and investors look for companies that have increased their earnings at least 25% or more over the past 3 years.

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