Vanguard Group Inc. Lowers Position in McGrath RentCorp $MGRC

Key Points

• Vanguard trimmed its McGrath RentCorp stake slightly in the fourth quarter, selling 14,901 shares and reducing its holdings by 0.5% to 2.71 million shares. Even after the sale, Vanguard still owned 11.02% of the company, valued at about $284.7 million.
• McGrath RentCorp posted mixed quarterly results, with earnings of $1.10 per share, missing the $1.13 consensus estimate, while revenue came in roughly in line at $198.54 million. Analysts currently expect the company to earn 6.35 EPS for the full fiscal year.
• The company increased its quarterly dividend to $0.495 per share, or $1.98 annualized, for a yield of 1.7%. Meanwhile, analysts’ overall view remains moderate bullish, with an average price target of $141.50 and a “Moderate Buy” rating.

Vanguard Group Inc. cut its stake in McGrath RentCorp (NASDAQ:MGRC - Free Report) by 0.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 2,713,094 shares of the financial services provider's stock after selling 14,901 shares during the quarter. Vanguard Group Inc. owned 11.02% of McGrath RentCorp worth $284,685,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. American Century Companies Inc. increased 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 worth $1,422,000 after buying an additional 85 shares during the last quarter. Diversified Trust Co. boosted its stake in McGrath RentCorp by 4.6% during the fourth quarter. Diversified Trust Co. now owns 2,332 shares of the financial services provider's stock valued at $245,000 after buying an additional 103 shares during the period. Arizona State Retirement System boosted its stake in McGrath RentCorp by 1.7% during the third quarter. Arizona State Retirement System now owns 7,270 shares of the financial services provider's stock valued at $853,000 after buying an additional 119 shares during the period. California State Teachers Retirement System boosted its stake in McGrath RentCorp by 0.5% during the second quarter. California State Teachers Retirement System now owns 22,696 shares of the financial services provider's stock valued at $2,632,000 after buying an additional 119 shares during the period. Finally, Vanguard Personalized Indexing Management LLC boosted its stake in McGrath RentCorp by 8.1% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 1,874 shares of the financial services provider's stock valued at $220,000 after buying an additional 141 shares during the period. 92.05% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

MGRC has been the subject of several research analyst reports. Zacks Research raised McGrath RentCorp from a "strong sell" rating to a "hold" rating in a research note on Thursday, January 15th. Barclays initiated coverage on McGrath RentCorp in a research note on Wednesday, February 11th. They set an "overweight" rating and a $140.00 price objective for the company. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of McGrath RentCorp in a research note on Friday, April 24th. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $141.50.

McGrath RentCorp Stock Up 0.3%

Shares of MGRC stock opened at $114.64 on Friday. The business has a 50-day moving average price of $110.81 and a two-hundred day moving average price of $109.76. McGrath RentCorp has a 12-month low of $94.99 and a 12-month high of $128.41. The firm has a market cap of $2.82 billion, a P/E ratio of 18.20, a price-to-earnings-growth ratio of 1.16 and a beta of 0.45.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $1.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.13 by ($0.03). McGrath RentCorp had a return on equity of 12.84% and a net margin of 16.38%.The firm had revenue of $198.54 million for the quarter, compared to the consensus estimate of $198.19 million. As a group, research analysts expect that McGrath RentCorp will post 6.35 EPS for the current fiscal year.

McGrath RentCorp Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th were paid a dividend of $0.495 per share. This represents a $1.98 annualized dividend and a yield of 1.7%. This is an increase from McGrath RentCorp's previous quarterly dividend of $0.49. The ex-dividend date of this dividend was Thursday, April 16th. McGrath RentCorp's dividend payout ratio is presently 31.43%.

Insider Transactions at McGrath RentCorp

In other McGrath RentCorp news, Director Joseph F. Hanna sold 530 shares of McGrath RentCorp stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $112.00, for a total transaction of $59,360.00. Following the completion of the sale, the director owned 159,049 shares of the company's stock, valued at $17,813,488. The trade was a 0.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.40% of the stock is currently owned by company insiders.

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.

Want to see what other hedge funds are holding MGRC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McGrath RentCorp (NASDAQ:MGRC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.