McGrath RentCorp (NASDAQ:MGRC) Increases Dividend to $0.49 Per Share

McGrath RentCorp (NASDAQ:MGRC) announced a quarterly dividend on Thursday, February 20th, Wall Street Journal reports. Shareholders of record on Wednesday, April 16th will be given a dividend of 0.485 per share by the financial services provider on Wednesday, April 30th. This represents a $1.94 annualized dividend and a yield of 1.50%. The ex-dividend date is Wednesday, April 16th. This is an increase from McGrath RentCorp’s previous quarterly dividend of $0.48.

McGrath RentCorp has raised its dividend payment by an average of 3.0% per year over the last three years and has increased its dividend every year for the last 32 years. McGrath RentCorp has a payout ratio of 28.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect McGrath RentCorp to earn $7.35 per share next year, which means the company should continue to be able to cover its $1.90 annual dividend with an expected future payout ratio of 25.9%.

McGrath RentCorp Stock Up 4.1 %

NASDAQ:MGRC opened at $128.96 on Friday. The firm has a market capitalization of $3.17 billion, a price-to-earnings ratio of 13.68, a price-to-earnings-growth ratio of 1.25 and a beta of 0.77. McGrath RentCorp has a twelve month low of $95.50 and a twelve month high of $129.56. The stock’s 50 day moving average price is $117.76 and its two-hundred day moving average price is $112.93.

McGrath RentCorp (NASDAQ:MGRC) last posted its quarterly earnings results on Wednesday, February 19th. The financial services provider reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.08. The firm had revenue of $243.75 million for the quarter, compared to analyst estimates of $246.93 million. McGrath RentCorp had a return on equity of 14.12% and a net margin of 25.44%. As a group, analysts anticipate that McGrath RentCorp will post 6.4 earnings per share for the current year.

Insider Buying and Selling

In related news, VP Gilda Malek sold 919 shares of the business’s stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $121.78, for a total transaction of $111,915.82. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.60% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

MGRC has been the topic of several recent analyst reports. CJS Securities initiated coverage on McGrath RentCorp in a research report on Wednesday, December 11th. They set an “outperform” rating and a $152.00 price target on the stock. Oppenheimer boosted their target price on McGrath RentCorp from $124.00 to $139.00 and gave the stock an “outperform” rating in a report on Friday, November 22nd. Finally, StockNews.com lowered McGrath RentCorp from a “buy” rating to a “hold” rating in a report on Thursday.

About McGrath RentCorp

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.