McGrath RentCorp (NASDAQ:MGRC) Releases Earnings Results, Misses Expectations By $0.10 EPS

Key Points

• McGrath RentCorp missed quarterly expectations: EPS was $1.37, $0.10 below consensus, while revenue of $221.11 million fell short of the $236.51 million forecast.
• Shares fell to $117 during Wednesday trading, while the company announced a quarterly dividend of $0.495 per share, representing a 1.7% annualized yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $141.50, although insiders have sold more than 30,000 shares worth approximately $3.49 million over the past three months.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) announced its quarterly earnings results on Wednesday. The financial services provider reported $1.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.47 by ($0.10), FiscalAI reports. McGrath RentCorp had a net margin of 16.38% and a return on equity of 12.84%. The firm had revenue of $221.11 million during the quarter, compared to analysts' expectations of $236.51 million.

McGrath RentCorp Price Performance

NASDAQ MGRC traded down $2.98 during trading on Wednesday, reaching $117.00. 170,275 shares of the company's stock traded hands, compared to its average volume of 185,091. McGrath RentCorp has a 12-month low of $94.99 and a 12-month high of $128.33. The firm has a market cap of $2.87 billion, a price-to-earnings ratio of 18.57, a price-to-earnings-growth ratio of 1.22 and a beta of 0.43. The company's 50 day simple moving average is $115.31 and its two-hundred day simple moving average is $113.30.

McGrath RentCorp Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be given a dividend of $0.495 per share. The ex-dividend date of this dividend is Friday, July 17th. This represents a $1.98 dividend on an annualized basis and a yield of 1.7%. McGrath RentCorp's dividend payout ratio (DPR) is 31.43%.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered McGrath RentCorp from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, May 8th. Two research 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.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $141.50.

Insider Transactions at McGrath RentCorp

In other news, 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 transaction of $160,454.28. Following the transaction, the senior vice president directly owned 8,018 shares in the company, valued at approximately $914,372.72. This trade represents a 14.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO David M. Whitney sold 3,783 shares of McGrath RentCorp stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $113.65, for a total transaction of $429,937.95. Following the transaction, the chief accounting officer directly owned 6,533 shares in the company, valued at approximately $742,475.45. The trade was a 36.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 30,051 shares of company stock worth $3,486,240. Insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Channing Capital Management LLC lifted its stake in shares of McGrath RentCorp by 39.1% during the 4th quarter. Channing Capital Management LLC now owns 836,894 shares of the financial services provider's stock worth $87,815,000 after purchasing an additional 235,311 shares during the last quarter. Alyeska Investment Group L.P. grew its stake in McGrath RentCorp by 752.5% in the fourth quarter. Alyeska Investment Group L.P. now owns 237,506 shares of the financial services provider's stock valued at $24,922,000 after purchasing an additional 209,646 shares during the last quarter. Raymond James Financial Inc. raised its holdings in McGrath RentCorp by 102.8% in the third quarter. Raymond James Financial Inc. now owns 303,205 shares of the financial services provider's stock worth $35,566,000 after purchasing an additional 153,701 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in McGrath RentCorp by 1,139.8% in the second quarter. Ameriprise Financial Inc. now owns 116,890 shares of the financial services provider's stock worth $13,555,000 after purchasing an additional 107,462 shares in the last quarter. Finally, Snyder Capital Management L P lifted its position in shares of McGrath RentCorp by 22.5% during the fourth quarter. Snyder Capital Management L P now owns 469,048 shares of the financial services provider's stock valued at $49,217,000 after buying an additional 86,035 shares during the last quarter. 92.05% of the stock is owned by institutional investors.

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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