Teacher Retirement System of Texas Raises Stock Holdings in McGrath RentCorp $MGRC

Key Points

• Teacher Retirement System of Texas increased its stake in McGrath RentCorp by 35.8% to 73,206 shares (about 0.30% of the company), and institutional investors now own roughly 92.05% of the stock.
• Analysts are broadly positive: Barclays initiated coverage with an “Overweight” rating, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $141.50 (two Buy, two Hold).
• McGrath beat quarterly estimates with EPS $2.02 vs. $1.74 expected and revenue of $256.8M, and it raised its quarterly dividend to $0.495 (annualized $1.98, ~1.7% yield; DPR 31.18%).

Teacher Retirement System of Texas increased its stake in shares of McGrath RentCorp (NASDAQ:MGRC - Free Report) by 35.8% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 73,206 shares of the financial services provider's stock after purchasing an additional 19,280 shares during the quarter. Teacher Retirement System of Texas owned approximately 0.30% of McGrath RentCorp worth $7,682,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Aster Capital Management DIFC Ltd purchased a new stake in shares of McGrath RentCorp during the 3rd quarter worth $29,000. Cullen Frost Bankers Inc. purchased a new stake in McGrath RentCorp in the third quarter valued at about $30,000. EverSource Wealth Advisors LLC raised its stake in McGrath RentCorp by 767.7% in the second quarter. EverSource Wealth Advisors LLC now owns 269 shares of the financial services provider's stock valued at $31,000 after buying an additional 238 shares during the last quarter. Danske Bank A S purchased a new stake in McGrath RentCorp in the third quarter valued at about $47,000. Finally, Strs Ohio purchased a new stake in McGrath RentCorp in the first quarter valued at about $56,000. 92.05% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have commented on MGRC. Barclays began coverage on McGrath RentCorp in a research note on Wednesday, February 11th. They issued an "overweight" rating and a $140.00 price target for the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of McGrath RentCorp in a research note on Tuesday, January 27th. Finally, Zacks Research upgraded McGrath RentCorp from a "strong sell" rating to a "hold" rating in a research note on Thursday, January 15th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $141.50.

McGrath RentCorp Stock Up 0.7%

Shares of NASDAQ:MGRC opened at $115.82 on Friday. McGrath RentCorp has a 52-week low of $94.99 and a 52-week high of $128.41. The stock has a market cap of $2.85 billion, a price-to-earnings ratio of 18.24, a PEG ratio of 1.14 and a beta of 0.49. The business has a 50-day moving average price of $110.74 and a 200-day moving average price of $109.88.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The financial services provider reported $2.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.74 by $0.28. McGrath RentCorp had a return on equity of 13.21% and a net margin of 16.55%.The firm had revenue of $256.76 million during the quarter, compared to analysts' expectations of $254.32 million. As a group, equities analysts anticipate that McGrath RentCorp will post 6.52 EPS for the current fiscal year.

McGrath RentCorp Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Thursday, April 16th will be paid a $0.495 dividend. The ex-dividend date is Thursday, April 16th. This is a positive change from McGrath RentCorp's previous quarterly dividend of $0.49. This represents a $1.98 annualized dividend and a dividend yield of 1.7%. McGrath RentCorp's dividend payout ratio (DPR) is 31.18%.

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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