McGrath RentCorp (NASDAQ:MGRC) Trading 5.1% Higher After Strong Earnings

Key Points

• McGrath RentCorp shares increased by 5.1% following a stronger than expected earnings report, with earnings per share (EPS) of $1.46 exceeding estimates by $0.16.
• The company declared a quarterly dividend of $0.485 per share, set to be paid on July 31st, representing an annualized dividend yield of 1.59%.
• Analysts have upgraded McGrath RentCorp’s stock from "hold" to "buy," signaling increased confidence in its performance.
• Insiders sold shares valued at over $2 million in the last quarter, indicating a decrease in their ownership while institutional investors hold 92.05% of the company’s stock.

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) shares traded up 5.1% on Friday following a stronger than expected earnings report. The stock traded as high as $124.00 and last traded at $121.85. 16,535 shares were traded during trading, a decline of 88% from the average session volume of 143,607 shares. The stock had previously closed at $115.96.

The financial services provider reported $1.46 EPS for the quarter, topping the consensus estimate of $1.30 by $0.16. The company had revenue of $235.62 million during the quarter, compared to analyst estimates of $220.71 million. McGrath RentCorp had a return on equity of 13.57% and a net margin of 25.81%. The firm's revenue was up 10.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.84 earnings per share.

McGrath RentCorp Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 31st. Shareholders of record on Thursday, July 17th will be paid a dividend of $0.485 per share. The ex-dividend date is Thursday, July 17th. This represents a $1.94 annualized dividend and a yield of 1.59%. McGrath RentCorp's dividend payout ratio is presently 20.10%.

Analyst Ratings Changes

Separately, Wall Street Zen upgraded McGrath RentCorp from a "hold" rating to a "buy" rating in a research note on Friday, April 25th.

Insiders Place Their Bets

In other news, CAO David M. Whitney sold 2,221 shares of the stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $114.21, for a total value of $253,660.41. Following the completion of the sale, the chief accounting officer owned 6,694 shares in the company, valued at approximately $764,521.74. This trade represents a 24.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Trease Kristina Van sold 2,221 shares of the stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $114.21, for a total value of $253,660.41. Following the completion of the sale, the insider owned 6,694 shares of the company's stock, valued at approximately $764,521.74. This trade represents a 24.91% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 18,313 shares of company stock valued at $2,005,372. Company insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On McGrath RentCorp

A number of large investors have recently modified their holdings of the stock. O Shaughnessy Asset Management LLC boosted its holdings in McGrath RentCorp by 3.4% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 2,602 shares of the financial services provider's stock valued at $291,000 after purchasing an additional 86 shares during the last quarter. Adirondack Trust Co. boosted its holdings in McGrath RentCorp by 20.0% in the second quarter. Adirondack Trust Co. now owns 600 shares of the financial services provider's stock valued at $70,000 after purchasing an additional 100 shares during the last quarter. Hsbc Holdings PLC boosted its holdings in McGrath RentCorp by 3.9% in the first quarter. Hsbc Holdings PLC now owns 4,117 shares of the financial services provider's stock valued at $460,000 after purchasing an additional 153 shares during the last quarter. Summit Investment Advisors Inc. boosted its holdings in McGrath RentCorp by 6.8% in the fourth quarter. Summit Investment Advisors Inc. now owns 2,553 shares of the financial services provider's stock valued at $285,000 after purchasing an additional 162 shares during the last quarter. Finally, Nisa Investment Advisors LLC lifted its holdings in McGrath RentCorp by 9.1% during the 1st quarter. Nisa Investment Advisors LLC now owns 2,093 shares of the financial services provider's stock worth $233,000 after buying an additional 174 shares during the last quarter. Institutional investors and hedge funds own 92.05% of the company's stock.

McGrath RentCorp Stock Performance

The business has a fifty day simple moving average of $115.81 and a 200 day simple moving average of $114.86. The company has a market cap of $3.00 billion, a P/E ratio of 12.63, a P/E/G ratio of 1.20 and a beta of 0.66.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.