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

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)'s stock price was up 5.1% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $124.00 and last traded at $121.85. Approximately 16,535 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 143,607 shares. The stock had previously closed at $115.96.

The financial services provider reported $1.46 earnings per share 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 the consensus estimate of $220.71 million. McGrath RentCorp had a return on equity of 13.52% and a net margin of 26.81%. The company's revenue was up 10.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.84 earnings per share.

McGrath RentCorp Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 31st. Stockholders of record on Thursday, July 17th will be given a dividend of $0.485 per share. The ex-dividend date is Thursday, July 17th. This represents a $1.94 dividend on an annualized basis and a dividend yield of 1.52%. McGrath RentCorp's payout ratio is currently 18.89%.

Analysts Set New Price Targets

Separately, Wall Street Zen raised shares of McGrath RentCorp from a "hold" rating to a "buy" rating in a report on Friday, April 25th.

Insiders Place Their Bets

In other McGrath RentCorp news, CEO Joseph F. Hanna sold 5,567 shares of the firm's stock in a transaction on Thursday, May 1st. The shares were sold at an average price of $108.89, for a total transaction of $606,190.63. Following the completion of the transaction, the chief executive officer directly owned 176,897 shares of the company's stock, valued at $19,262,314.33. This trade represents a 3.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO David M. Whitney sold 2,221 shares of McGrath RentCorp 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 transaction, the chief accounting officer owned 6,694 shares of the company's stock, valued at $764,521.74. This trade represents a 24.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 13,509 shares of company stock valued at $1,507,821. Company insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On McGrath RentCorp

Institutional investors have recently made changes to their positions in the stock. New Age Alpha Advisors LLC bought a new position in McGrath RentCorp in the 4th quarter worth about $33,000. Strs Ohio bought a new stake in shares of McGrath RentCorp in the 1st quarter worth approximately $56,000. Adirondack Trust Co. grew its position in McGrath RentCorp by 20.0% in the second quarter. Adirondack Trust Co. now owns 600 shares of the financial services provider's stock worth $70,000 after buying an additional 100 shares during the last quarter. Canada Pension Plan Investment Board purchased a new stake in shares of McGrath RentCorp during the fourth quarter valued at $89,000. Finally, Focus Partners Wealth acquired a new position in shares of McGrath RentCorp in the 4th quarter valued at $136,000. 92.05% of the stock is owned by institutional investors.

McGrath RentCorp Stock Up 0.9%

The firm's 50-day moving average price is $116.20 and its two-hundred day moving average price is $115.11. The firm has a market capitalization of $3.13 billion, a PE ratio of 12.40, a P/E/G ratio of 1.30 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.