Medina Value Partners LLC Buys New Stake in McGrath RentCorp $MGRC

Key Points

• Medina Value Partners acquired 210,294 McGrath RentCorp shares in the second quarter, representing a 0.86% stake and about 5% of its portfolio. Institutional investors and hedge funds collectively own 92.05% of MGRC.
• McGrath RentCorp reported quarterly EPS of $1.37, missing the $1.47 consensus estimate, while revenue of $221.11 million also fell short of expectations. Analysts expect full-year EPS of approximately $6.37.
• The company paid a quarterly dividend of $0.495 per share, implying an annualized yield of about 1.7%. Despite recent insider selling, analysts maintain a “Moderate Buy” consensus with a $141.50 target price, above the reported $114.73 share price.

Medina Value Partners LLC purchased a new position in shares of McGrath RentCorp (NASDAQ:MGRC - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 210,294 shares of the financial services provider's stock, valued at approximately $25,451,883,000. McGrath RentCorp accounts for approximately 5.0% of Medina Value Partners LLC's investment portfolio, making the stock its 5th largest position. Medina Value Partners LLC owned 0.86% of McGrath RentCorp as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently added to or reduced their stakes in MGRC. American Century Companies Inc. raised its position in McGrath RentCorp by 0.7% in the second quarter. American Century Companies Inc. now owns 12,263 shares of the financial services provider's stock valued at $1,422,000 after purchasing an additional 85 shares during the period. California State Teachers Retirement System boosted its position in shares of McGrath RentCorp by 0.5% in the second quarter. California State Teachers Retirement System now owns 22,696 shares of the financial services provider's stock worth $2,632,000 after buying an additional 119 shares during the period. Neuberger Berman Group LLC grew its stake in shares of McGrath RentCorp by 6.9% in the fourth quarter. Neuberger Berman Group LLC now owns 1,948 shares of the financial services provider's stock valued at $204,000 after buying an additional 126 shares in the last quarter. Osaic Holdings Inc. raised its holdings in shares of McGrath RentCorp by 1.0% during the 4th quarter. Osaic Holdings Inc. now owns 15,596 shares of the financial services provider's stock valued at $1,636,000 after buying an additional 149 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of McGrath RentCorp by 0.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 66,748 shares of the financial services provider's stock valued at $7,004,000 after buying an additional 175 shares during the period. 92.05% of the stock is currently owned by institutional investors and hedge funds.

McGrath RentCorp Price Performance

NASDAQ:MGRC opened at $114.73 on Wednesday. The firm has a 50-day moving average of $118.53 and a two-hundred day moving average of $114.19. The stock has a market cap of $2.80 billion, a P/E ratio of 18.48, a PEG ratio of 1.18 and a beta of 0.44. McGrath RentCorp has a 1-year low of $94.99 and a 1-year high of $127.68.

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

McGrath RentCorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Friday, July 17th were paid a dividend of $0.495 per share. This represents a $1.98 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Friday, July 17th. McGrath RentCorp's dividend payout ratio (DPR) is 31.88%.

Insider Activity at McGrath RentCorp

In other McGrath RentCorp news, CEO Philip B. Hawkins sold 4,435 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $120.91, for a total value of $536,235.85. Following the transaction, the chief executive officer directly owned 13,371 shares of the company's stock, valued at $1,616,687.61. This represents a 24.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Gilda Malek sold 1,407 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $114.04, for a total value of $160,454.28. Following the transaction, the senior vice president owned 8,018 shares of the company's stock, valued at approximately $914,372.72. This trade represents a 14.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 25,408 shares of company stock worth $3,014,686 over the last ninety days. Company insiders own 1.40% of the company's stock.

Wall Street Analyst Weigh In

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

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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