McGrath RentCorp (NASDAQ:MGRC) Shares Pass Above 200 Day Moving Average - What's Next?

Key Points

• Price action: Shares briefly crossed above their 200‑day moving average of $110.59, trading as high as $112.08, but last traded at $107.53 and were down about 4% on the session (volume 202,151).
• Fundamentals and analyst view: McGrath beat Q results (EPS $2.02 vs. $1.74 est.; revenue $256.8M vs. $254.3M) and carries a consensus "Moderate Buy" with an average target of $141.50, including Barclays' "overweight" $140 target.
• Dividend and ownership: The company raised its quarterly dividend to $0.495 (annualized $1.98, ~1.8% yield; ex‑dividend April 16), and institutional investors own about 92.05% of the stock.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $110.59 and traded as high as $112.08. McGrath RentCorp shares last traded at $107.53, with a volume of 202,151 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on MGRC. Zacks Research raised McGrath RentCorp from a "strong sell" rating to a "hold" rating in a report on Thursday, January 15th. Weiss Ratings reissued a "hold (c+)" rating on shares of McGrath RentCorp in a research report on Tuesday, January 27th. Finally, Barclays assumed coverage on shares of McGrath RentCorp in a research note on Wednesday, February 11th. They issued an "overweight" rating and a $140.00 price target on the stock. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $141.50.

McGrath RentCorp Stock Down 4.0%

The firm has a market capitalization of $2.65 billion, a P/E ratio of 16.93, a PEG ratio of 1.11 and a beta of 0.49. The firm has a 50 day moving average of $111.70 and a 200-day moving average of $110.59.

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

McGrath RentCorp Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Thursday, April 16th will be given a $0.495 dividend. The ex-dividend date is Thursday, April 16th. This is an increase from McGrath RentCorp's previous quarterly dividend of $0.49. This represents a $1.98 dividend on an annualized basis and a dividend yield of 1.8%. McGrath RentCorp's dividend payout ratio (DPR) is 30.55%.

Institutional Investors Weigh In On McGrath RentCorp

Several institutional investors and hedge funds have recently bought and sold shares of the company. Hsbc Holdings PLC bought a new position in McGrath RentCorp in the 4th quarter valued at about $267,000. Rockefeller Capital Management L.P. raised its position in shares of McGrath RentCorp by 9.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 7,329 shares of the financial services provider's stock valued at $769,000 after buying an additional 617 shares in the last quarter. River Road Asset Management LLC lifted its holdings in shares of McGrath RentCorp by 3.1% during the 4th quarter. River Road Asset Management LLC now owns 2,131,121 shares of the financial services provider's stock worth $223,619,000 after acquiring an additional 64,566 shares during the period. Vision One Management Partners LP lifted its holdings in shares of McGrath RentCorp by 133.8% during the 4th quarter. Vision One Management Partners LP now owns 54,746 shares of the financial services provider's stock worth $5,744,000 after acquiring an additional 31,334 shares during the period. Finally, EP Wealth Advisors LLC acquired a new stake in shares of McGrath RentCorp during the 4th quarter worth approximately $348,000. Institutional investors own 92.05% of the company's stock.

McGrath RentCorp Company 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.

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