McGrath RentCorp (NASDAQ:MGRC) Announces Earnings Results

Key Points

• McGrath RentCorp reported earnings of $1.72 per share, which missed analysts' estimates of $1.83 by $0.11.
• The company announced a quarterly dividend of $0.485 per share, with a yield of 1.6%, to be paid on October 31st.
• Research analysts have a consensus rating of "Buy" for McGrath RentCorp, with a target price of $147.50.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) issued its earnings results on Thursday. The financial services provider reported $1.72 earnings per share for the quarter, missing analysts' consensus estimates of $1.83 by ($0.11), Zacks reports. McGrath RentCorp had a net margin of 26.81% and a return on equity of 13.52%.

McGrath RentCorp Price Performance

MGRC traded down $1.82 on Thursday, hitting $120.38. The company had a trading volume of 102,302 shares, compared to its average volume of 137,991. The stock has a market cap of $2.96 billion, a price-to-earnings ratio of 11.72, a price-to-earnings-growth ratio of 1.25 and a beta of 0.56. The company's fifty day moving average price is $120.19 and its 200 day moving average price is $116.02. McGrath RentCorp has a 1-year low of $97.81 and a 1-year high of $129.93.

McGrath RentCorp Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Friday, October 17th will be issued a $0.485 dividend. This represents a $1.94 annualized dividend and a yield of 1.6%. The ex-dividend date is Friday, October 17th. McGrath RentCorp's payout ratio is 18.89%.

Insider Buying and Selling

In related news, Director Kimberly Ann Box sold 1,500 shares of McGrath RentCorp stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $118.50, for a total value of $177,750.00. Following the transaction, the director owned 7,000 shares in the company, valued at $829,500. This trade represents a 17.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Joseph F. Hanna sold 14,577 shares of the business's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $126.55, for a total transaction of $1,844,719.35. Following the transaction, the chief executive officer directly owned 153,637 shares of the company's stock, valued at approximately $19,442,762.35. This represents a 8.67% decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On McGrath RentCorp

Several large investors have recently made changes to their positions in the business. American Century Companies Inc. grew its holdings in McGrath RentCorp by 0.7% in the 2nd quarter. American Century Companies Inc. now owns 12,263 shares of the financial services provider's stock valued at $1,422,000 after buying an additional 85 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of McGrath RentCorp in the second quarter valued at approximately $1,373,000. Sei Investments Co. increased its position in McGrath RentCorp by 12.0% during the second quarter. Sei Investments Co. now owns 11,837 shares of the financial services provider's stock worth $1,373,000 after acquiring an additional 1,266 shares during the period. CANADA LIFE ASSURANCE Co increased its position in McGrath RentCorp by 4.8% during the second quarter. CANADA LIFE ASSURANCE Co now owns 10,039 shares of the financial services provider's stock worth $1,166,000 after acquiring an additional 457 shares during the period. Finally, Captrust Financial Advisors raised its stake in McGrath RentCorp by 17.0% during the 2nd quarter. Captrust Financial Advisors now owns 9,614 shares of the financial services provider's stock valued at $1,115,000 after purchasing an additional 1,394 shares during the last quarter. Institutional investors and hedge funds own 92.05% of the company's stock.

Analyst Upgrades and Downgrades

MGRC has been the subject of a number of research analyst reports. Weiss Ratings reiterated a "buy (b-)" rating on shares of McGrath RentCorp in a research report on Tuesday, October 14th. Oppenheimer lifted their price objective on McGrath RentCorp from $139.00 to $143.00 and gave the company an "outperform" rating in a research report on Thursday, September 18th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus target price of $147.50.

McGrath RentCorp Company Profile

McGrath RentCorp operates as a business to business rental company in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, and electronic test equipment. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex.

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