Activist investor Jana Partners LLC has acquired a 6-percent ownership stake in United Rentals, according to Reuters and other sources. The investment by Jana Partners triggered an increase in investment support of United Rentals, whose stock had declined in recent weeks.
A partner at Jana told the 2015 Carter Burden Investment Conference that investors, concerned about oil price declines, were over-reacting. The partner, Nik Mittal, noted that United Rentals is run by “a great CEO” and that the company has “notable strengths” that will have a greater impact than any weaknesses.
Analysts from TheStreet noted that United Rentals’ current return on equity greatly increased compared with its ROE from the first quarter a year ago, a signal of significant strength within the company.
Jana Partners estimated that United’s revenues will grow at least 5 percent in 2015 and 6 percent in 2016.
United Rentals, based in Stamford, Conn., is No. 1 on the RER 100.
