McGrath RentCorp (NASDAQ:MGRC) to Issue Quarterly Dividend of $0.49

Key Points

• McGrath RentCorp declared a quarterly dividend of $0.49, payable on October 31st to shareholders of record as of October 17th, representing an annual yield of 1.6%.
• The company reported earnings of $1.46 per share for the last quarter, exceeding estimates, with revenue up 10.8% year-over-year to $235.62 million.
• Oppenheimer raised its price target for McGrath RentCorp from $139.00 to $143.00, with the company's stock receiving a consensus rating of "Buy" and an average target price of $147.50.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) declared a quarterly dividend on Friday, September 19th, RTT News reports. Shareholders of record on Friday, October 17th will be given a dividend of 0.485 per share by the financial services provider on Friday, October 31st. This represents a c) annualized dividend and a yield of 1.6%.

McGrath RentCorp has a dividend payout ratio of 29.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect McGrath RentCorp to earn $6.87 per share next year, which means the company should continue to be able to cover its $1.94 annual dividend with an expected future payout ratio of 28.2%.

McGrath RentCorp Price Performance

Shares of NASDAQ MGRC traded down $2.70 during trading on Friday, reaching $120.77. 282,774 shares of the stock traded hands, compared to its average volume of 110,373. The company has a 50-day moving average of $121.11 and a 200-day moving average of $115.28. The stock has a market capitalization of $2.97 billion, a P/E ratio of 11.76, a price-to-earnings-growth ratio of 1.27 and a beta of 0.61. McGrath RentCorp has a 52-week low of $97.81 and a 52-week high of $129.93.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) last announced its earnings results on Thursday, July 24th. The financial services provider reported $1.46 earnings per share for the quarter, topping analysts' consensus estimates of $1.30 by $0.16. The business had revenue of $235.62 million for the quarter, compared to analyst estimates of $220.71 million. McGrath RentCorp had a return on equity of 13.52% and a net margin of 26.81%.The company's quarterly revenue was up 10.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.84 EPS. McGrath RentCorp has set its FY 2025 guidance at EPS. Analysts expect that McGrath RentCorp will post 6.18 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Separately, Oppenheimer lifted their price target on McGrath RentCorp from $139.00 to $143.00 and gave the stock an "outperform" rating in a research note on Thursday. Two research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target 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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