Channing Capital Management LLC Buys New Position in McGrath RentCorp $MGRC

Key Points

• Channing Capital Management LLC invested approximately $55.05 million in McGrath RentCorp, acquiring 494,159 shares during the first quarter, representing about 2.01% of the company's stock.
• McGrath RentCorp reported a quarterly earnings per share (EPS) of $1.46, exceeding analyst expectations and showcasing a 10.8% increase in revenue compared to the previous year.
• The company announced a quarterly dividend of $0.485, translating to an annualized dividend of $1.94 and a yield of 1.6%, with a payout ratio of 18.89%.

Channing Capital Management LLC purchased a new stake in shares of McGrath RentCorp (NASDAQ:MGRC - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 494,159 shares of the financial services provider's stock, valued at approximately $55,049,000. Channing Capital Management LLC owned approximately 2.01% of McGrath RentCorp at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in MGRC. T. Rowe Price Investment Management Inc. increased its stake in McGrath RentCorp by 13.2% during the first quarter. T. Rowe Price Investment Management Inc. now owns 1,038,460 shares of the financial services provider's stock valued at $115,685,000 after purchasing an additional 120,829 shares during the last quarter. Banco Bilbao Vizcaya Argentaria S.A. boosted its holdings in shares of McGrath RentCorp by 81.1% in the 1st quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 8,978 shares of the financial services provider's stock valued at $1,006,000 after buying an additional 4,020 shares during the period. Hsbc Holdings PLC boosted its holdings in shares of McGrath RentCorp by 3.9% in the 1st quarter. Hsbc Holdings PLC now owns 4,117 shares of the financial services provider's stock valued at $460,000 after buying an additional 153 shares during the period. Versor Investments LP bought a new stake in shares of McGrath RentCorp during the 1st quarter valued at about $445,000. Finally, Raymond James Financial Inc. raised its stake in McGrath RentCorp by 25.1% during the first quarter. Raymond James Financial Inc. now owns 147,448 shares of the financial services provider's stock worth $16,425,000 after acquiring an additional 29,587 shares during the period. Institutional investors and hedge funds own 92.05% of the company's stock.

Insider Activity

In other McGrath RentCorp news, CAO David M. Whitney sold 2,221 shares of the company's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $114.21, for a total value of $253,660.41. Following the completion of the transaction, the chief accounting officer owned 6,694 shares in the company, valued at approximately $764,521.74. This represents a 24.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Trease Kristina Van sold 2,221 shares of the firm's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $114.21, for a total transaction of $253,660.41. Following the completion of the sale, the insider owned 6,694 shares in the company, valued at $764,521.74. The trade was a 24.91% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 21,519 shares of company stock worth $2,645,800 over the last ninety days. Insiders own 1.40% of the company's stock.

McGrath RentCorp Trading Up 5.3%

NASDAQ MGRC traded up $6.22 during trading hours on Friday, reaching $124.02. The company's stock had a trading volume of 109,477 shares, compared to its average volume of 136,323. The business has a 50-day simple moving average of $118.58 and a 200 day simple moving average of $115.16. McGrath RentCorp has a 52 week low of $95.50 and a 52 week high of $129.93. The stock has a market cap of $3.05 billion, a PE ratio of 12.08, a PEG ratio of 1.28 and a beta of 0.66.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The financial services provider reported $1.46 earnings per share for the quarter, topping analysts' consensus estimates of $1.30 by $0.16. McGrath RentCorp had a return on equity of 13.52% and a net margin of 26.81%.The business had revenue of $235.62 million for the quarter, compared to analysts' expectations of $220.71 million. During the same period in the prior year, the firm earned $0.84 EPS. The business's quarterly revenue was up 10.8% on a year-over-year basis. McGrath RentCorp has set its FY 2025 guidance at EPS. As a group, equities analysts predict that McGrath RentCorp will post 6.18 EPS for the current year.

McGrath RentCorp Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Thursday, July 17th were issued a dividend of $0.485 per share. The ex-dividend date of this dividend was Thursday, July 17th. This represents a $1.94 annualized dividend and a dividend yield of 1.6%. McGrath RentCorp's payout ratio is 18.89%.

About McGrath RentCorp

McGrath RentCorp operates as a business to business rental company in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, and electronic test equipment. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex.