McGrath RentCorp $MGRC is River Road Asset Management LLC's 5th Largest Position

Key Points

• River Road Asset Management increased its McGrath RentCorp stake by 3.1% in Q4, making MGRC its 5th-largest holding. The firm now owns 2,131,121 shares, worth about $223.6 million.
• McGrath RentCorp shares were up 3.9% to $118.19, while the company reported quarterly EPS of $1.10, slightly below estimates. Revenue came in roughly in line at $198.54 million.
• The company declared a quarterly dividend of $0.495 per share, or $1.98 annually, for a 1.7% yield. Meanwhile, insiders have recently sold shares, and analysts currently rate the stock a Moderate Buy with a $141.50 target price.

River Road Asset Management LLC grew its stake in McGrath RentCorp (NASDAQ:MGRC - Free Report) by 3.1% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,131,121 shares of the financial services provider's stock after buying an additional 64,566 shares during the period. McGrath RentCorp accounts for 2.5% of River Road Asset Management LLC's investment portfolio, making the stock its 5th largest holding. River Road Asset Management LLC owned about 8.66% of McGrath RentCorp worth $223,619,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its stake in McGrath RentCorp by 690,151.2% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 296,808 shares of the financial services provider's stock worth $31,144,000 after acquiring an additional 296,765 shares in the last quarter. Channing Capital Management LLC lifted its position in McGrath RentCorp by 39.1% in the fourth quarter. Channing Capital Management LLC now owns 836,894 shares of the financial services provider's stock valued at $87,815,000 after acquiring an additional 235,311 shares during the last quarter. Alyeska Investment Group L.P. boosted its stake in McGrath RentCorp by 752.5% in the fourth quarter. Alyeska Investment Group L.P. now owns 237,506 shares of the financial services provider's stock valued at $24,922,000 after acquiring an additional 209,646 shares in the last quarter. Raymond James Financial Inc. boosted its stake in McGrath RentCorp by 102.8% in the third quarter. Raymond James Financial Inc. now owns 303,205 shares of the financial services provider's stock valued at $35,566,000 after acquiring an additional 153,701 shares in the last quarter. Finally, Tredje AP fonden purchased a new position in shares of McGrath RentCorp during the fourth quarter worth about $12,246,000. 92.05% of the stock is owned by hedge funds and other institutional investors.

McGrath RentCorp Trading Up 3.9%

MGRC stock opened at $118.19 on Friday. The company has a market capitalization of $2.90 billion, a P/E ratio of 18.76, a PEG ratio of 1.16 and a beta of 0.44. The business has a 50 day simple moving average of $112.84 and a 200-day simple moving average of $110.84. McGrath RentCorp has a twelve month low of $94.99 and a twelve month high of $128.41.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last announced its earnings results on Wednesday, April 29th. The financial services provider reported $1.10 EPS for the quarter, missing analysts' consensus estimates of $1.13 by ($0.03). The business had revenue of $198.54 million during the quarter, compared to analyst estimates of $198.19 million. McGrath RentCorp had a net margin of 16.38% and a return on equity of 12.84%. Research analysts predict that McGrath RentCorp will post 6.35 EPS for the current fiscal year.

McGrath RentCorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be given a dividend of $0.495 per share. This represents a $1.98 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 17th. McGrath RentCorp's dividend payout ratio (DPR) is presently 31.43%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut McGrath RentCorp from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, May 8th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $141.50.

Insider Buying and Selling at McGrath RentCorp

In other news, SVP Gilda Malek sold 1,407 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $114.04, for a total value of $160,454.28. Following the completion of the sale, the senior vice president directly owned 8,018 shares of the company's stock, valued at approximately $914,372.72. This represents a 14.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Joseph F. Hanna sold 9,470 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $112.49, for a total transaction of $1,065,280.30. Following the sale, the director owned 159,579 shares of the company's stock, valued at $17,951,041.71. This trade represents a 5.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 20,051 shares of company stock valued at $2,268,940. Company insiders own 1.40% of the company's stock.

McGrath RentCorp Profile

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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