Alyeska Investment Group L.P. Acquires 93,196 Shares of McGrath RentCorp $MGRC

Key Points

• Alyeska Investment Group increased its McGrath RentCorp stake by 39.2%, acquiring 93,196 shares to own 330,702 shares worth approximately $40.0 million. Institutional investors collectively hold 92.05% of the company.
• Analysts maintain a consensus “Moderate Buy” rating with a $141.50 price target, while MGRC recently traded at $112.28. The company’s latest quarterly results missed expectations, reporting $1.37 in EPS versus $1.47 expected and revenue of $221.11 million versus $236.51 million forecast.
• McGrath RentCorp paid a quarterly dividend of $0.495 per share, equal to an annualized $1.98 dividend and a 1.8% yield. Company insiders have sold 25,408 shares worth about $3.0 million over the past quarter.

Alyeska Investment Group L.P. lifted its stake in McGrath RentCorp (NASDAQ:MGRC - Free Report) by 39.2% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 330,702 shares of the financial services provider's stock after acquiring an additional 93,196 shares during the period. Alyeska Investment Group L.P. owned approximately 1.35% of McGrath RentCorp worth $40,025,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of MGRC. River Road Asset Management LLC grew its position in McGrath RentCorp by 3.1% in the 4th quarter. River Road Asset Management LLC now owns 2,131,121 shares of the financial services provider's stock worth $223,619,000 after purchasing an additional 64,566 shares during the last quarter. BlackRock Inc. acquired a new position in shares of McGrath RentCorp in the second quarter valued at $252,840,000. Eminence Capital LP raised its stake in shares of McGrath RentCorp by 0.5% in the fourth quarter. Eminence Capital LP now owns 949,673 shares of the financial services provider's stock valued at $99,649,000 after purchasing an additional 4,701 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in McGrath RentCorp by 5.5% during the first quarter. Dimensional Fund Advisors LP now owns 906,954 shares of the financial services provider's stock worth $100,019,000 after buying an additional 47,451 shares in the last quarter. Finally, Victory Capital Management Inc. increased its holdings in McGrath RentCorp by 0.7% in the 4th quarter. Victory Capital Management Inc. now owns 900,181 shares of the financial services provider's stock valued at $94,456,000 after buying an additional 6,552 shares during the period. Institutional investors own 92.05% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded shares of McGrath RentCorp from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, July 28th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, McGrath RentCorp presently has a consensus rating of "Moderate Buy" and a consensus price target of $141.50.

McGrath RentCorp Price Performance

Shares of MGRC opened at $112.28 on Monday. The company has a market capitalization of $2.74 billion, a P/E ratio of 18.08, a PEG ratio of 1.14 and a beta of 0.44. McGrath RentCorp has a one year low of $94.99 and a one year high of $127.68. The business's 50 day simple moving average is $118.33 and its 200-day simple moving average is $114.07.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.37 earnings per share for the quarter, missing analysts' consensus estimates of $1.47 by ($0.10). The business had revenue of $221.11 million for the quarter, compared to analyst estimates of $236.51 million. McGrath RentCorp had a net margin of 16.38% and a return on equity of 12.44%. On average, sell-side analysts anticipate that McGrath RentCorp will post 6.37 EPS for the current fiscal year.

McGrath RentCorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Friday, July 17th were issued a dividend of $0.495 per share. The ex-dividend date of this dividend was Friday, July 17th. This represents a $1.98 dividend on an annualized basis and a yield of 1.8%. McGrath RentCorp's dividend payout ratio is currently 31.88%.

Insider Activity

In other McGrath RentCorp news, VP John Lieffrig sold 500 shares of the stock in a transaction on Friday, June 26th. The stock was sold at an average price of $125.00, for a total value of $62,500.00. Following the transaction, the vice president directly owned 23,551 shares in the company, valued at approximately $2,943,875. This trade represents a 2.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP John P. Skenesky sold 2,000 shares of McGrath RentCorp stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $120.41, for a total transaction of $240,820.00. Following the sale, the vice president owned 10,634 shares of the company's stock, valued at approximately $1,280,439.94. This represents a 15.83% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 25,408 shares of company stock worth $3,014,686. 1.40% of the stock is currently owned by insiders.

About McGrath RentCorp

McGrath RentCorp, through its subsidiaries, provides rental, sales, and servicing of equipment for commercial, industrial, environmental, and residential markets. The company operates primarily through two segments—mobile storage and water management—offering flexible solutions for customers requiring on-site storage, water transport, treatment, and dewatering services.

In its mobile storage segment, McGrath RentCorp supplies portable storage containers and modular office units to sectors including construction, retail, government, and disaster restoration.

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