McGrath RentCorp (NASDAQ:MGRC) Announces Earnings Results, Misses Expectations By $0.10 EPS

McGrath RentCorp (NASDAQ:MGRC) posted its earnings results on Wednesday. The financial services provider reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.47 by ($0.10), FiscalAI reports. The firm had revenue of $221.11 million for the quarter, compared to analysts’ expectations of $236.51 million. McGrath RentCorp had a net margin of 16.38% and a return on equity of 12.84%.

McGrath RentCorp Price Performance

McGrath RentCorp stock traded down $2.98 during mid-day trading on Wednesday, reaching $117.00. 170,275 shares of the company traded hands, compared to its average volume of 185,091. The firm’s fifty day moving average is $115.31 and its two-hundred day moving average is $113.30. The company has a market capitalization of $2.87 billion, a price-to-earnings ratio of 18.57, a price-to-earnings-growth ratio of 1.22 and a beta of 0.43. McGrath RentCorp has a fifty-two week low of $94.99 and a fifty-two week high of $128.33.

McGrath RentCorp Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be given a dividend of $0.495 per share. This represents a $1.98 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 17th. McGrath RentCorp’s payout ratio is currently 31.43%.

Insider Activity

In related news, CAO David M. Whitney sold 3,783 shares of the company’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $113.65, for a total value of $429,937.95. Following the transaction, the chief accounting officer directly owned 6,533 shares of the company’s stock, valued at $742,475.45. This represents a 36.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP John Lieffrig sold 500 shares of the firm’s stock in a transaction on Friday, June 26th. The stock was sold at an average price of $125.00, for a total value of $62,500.00. Following the completion of the transaction, the vice president owned 23,551 shares of the company’s stock, valued at $2,943,875. This trade represents a 2.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 30,051 shares of company stock valued at $3,486,240. 1.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On McGrath RentCorp

A number of institutional investors and hedge funds have recently modified their holdings of MGRC. Hsbc Holdings PLC acquired a new stake in shares of McGrath RentCorp during the fourth quarter worth about $267,000. Vision One Management Partners LP increased its holdings in McGrath RentCorp by 133.8% in 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 buying an additional 31,334 shares during the period. EP Wealth Advisors LLC purchased a new position in McGrath RentCorp during the 4th quarter worth approximately $348,000. Voloridge Investment Management LLC raised its position in McGrath RentCorp by 237.1% during the 4th quarter. Voloridge Investment Management LLC now owns 44,165 shares of the financial services provider’s stock worth $4,634,000 after buying an additional 31,063 shares during the last quarter. Finally, Millennium Management LLC lifted its stake in McGrath RentCorp by 0.5% during the 4th quarter. Millennium Management LLC now owns 51,504 shares of the financial services provider’s stock valued at $5,404,000 after acquiring an additional 266 shares during the period. Institutional investors and hedge funds own 92.05% of the company’s stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded McGrath RentCorp from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 8th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, McGrath RentCorp presently has an average rating of “Moderate Buy” and a consensus price target of $141.50.

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.