Tributary Capital Management LLC Makes New $9.06 Million Investment in McGrath RentCorp $MGRC

Key Points

• Tributary Capital Management established a new Q4 position in McGrath RentCorp (NASDAQ:MGRC), buying 86,372 shares worth about $9.06 million, or roughly 0.35% of the company.
• McGrath RentCorp beat Q4 expectations with EPS of $2.02 vs. $1.74 consensus and revenue of $256.8M, posting a net margin of 16.55% and ROE of 13.21%; analysts forecast ~6.18 EPS for the year and the stock carries a "Moderate Buy" consensus with a $141.50 target.
• The company raised its quarterly dividend to $0.495 per share (annualized $1.98), representing a 1.7% yield, with an ex-dividend/record date of April 16 and payment scheduled for April 30.

Tributary Capital Management LLC bought a new position in McGrath RentCorp (NASDAQ:MGRC - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 86,372 shares of the financial services provider's stock, valued at approximately $9,063,000. Tributary Capital Management LLC owned about 0.35% of McGrath RentCorp at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of the company. Palouse Capital Management Inc. bought a new position in McGrath RentCorp in the 4th quarter worth about $152,000. Chatham Capital Group Inc. grew its position in McGrath RentCorp by 0.7% in the 4th quarter. Chatham Capital Group Inc. now owns 26,824 shares of the financial services provider's stock worth $2,815,000 after purchasing an additional 190 shares during the last quarter. Wedge Capital Management L L P NC grew its position in McGrath RentCorp by 14.3% in the 4th quarter. Wedge Capital Management L L P NC now owns 22,811 shares of the financial services provider's stock worth $2,394,000 after purchasing an additional 2,855 shares during the last quarter. SG Americas Securities LLC grew its position in McGrath RentCorp by 240.3% in the 4th quarter. SG Americas Securities LLC now owns 31,308 shares of the financial services provider's stock worth $3,285,000 after purchasing an additional 22,108 shares during the last quarter. Finally, Diversified Trust Co. grew its position in McGrath RentCorp by 4.6% in the 4th quarter. Diversified Trust Co. now owns 2,332 shares of the financial services provider's stock worth $245,000 after purchasing an additional 103 shares during the last quarter. Institutional investors own 92.05% of the company's stock.

McGrath RentCorp Stock Performance

Shares of NASDAQ:MGRC opened at $116.87 on Friday. The stock has a market capitalization of $2.88 billion, a price-to-earnings ratio of 18.40, a PEG ratio of 1.14 and a beta of 0.49. McGrath RentCorp has a 1-year low of $94.99 and a 1-year high of $128.41. The company has a 50 day moving average price of $111.09 and a 200 day moving average price of $109.96.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last issued its earnings results on Wednesday, February 25th. The financial services provider reported $2.02 earnings per share for the quarter, topping analysts' consensus estimates of $1.74 by $0.28. The firm had revenue of $256.76 million during the quarter, compared to analysts' expectations of $254.32 million. McGrath RentCorp had a net margin of 16.55% and a return on equity of 13.21%. On average, sell-side analysts expect that McGrath RentCorp will post 6.18 EPS for the current fiscal year.

McGrath RentCorp Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Thursday, April 16th will be issued a dividend of $0.495 per share. 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 dividend on an annualized basis and a yield of 1.7%. McGrath RentCorp's payout ratio is 31.18%.

Analyst Ratings Changes

Several research firms have recently issued reports on MGRC. Weiss Ratings reiterated a "hold (c+)" rating on shares of McGrath RentCorp in a report on Tuesday, January 27th. Zacks Research upgraded shares of McGrath RentCorp from a "strong sell" rating to a "hold" rating in a report on Thursday, January 15th. Finally, Barclays began coverage on shares of McGrath RentCorp in a report on Wednesday, February 11th. They issued an "overweight" rating and a $140.00 price objective for the company. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, McGrath RentCorp has an average rating of "Moderate Buy" and an average 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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