Zacks Investment Research Downgrades McGrath RentCorp (MGRC) to Hold
McGrath RentCorp (NASDAQ:MGRC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “McGrath RentCorp is comprised of three business segments: Mobile Modular Management Corporation, their modular building rental group, RenTelco, their electronic test equipment rental group, and Enviroplex, their majority-owned subsidiary classroom manufacturing business. MMMC rents and sells modular buildings and accessories to fulfill customers’ space needs. These units are used as temporary offices adjacent to existing facilities, and are used as sales offices, construction field offices, classrooms, health care clinics, child care facilities and for a variety of other purposes. “
A number of other research analysts have also issued reports on the stock. Sidoti raised their target price on shares of McGrath RentCorp from $36.00 to $40.00 and gave the company a “buy” rating in a research note on Wednesday, September 14th. TheStreet upgraded shares of McGrath RentCorp from a “hold” rating to a “buy” rating in a research note on Friday, June 10th.
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Shares of McGrath RentCorp (NASDAQ:MGRC) traded up 0.48% during midday trading on Wednesday, hitting $31.51. 73,543 shares of the company were exchanged. The stock’s 50-day moving average is $31.73 and its 200-day moving average is $28.62. The stock has a market cap of $753.03 million, a PE ratio of 19.54 and a beta of 0.96. McGrath RentCorp has a one year low of $21.46 and a one year high of $33.35.
McGrath RentCorp (NASDAQ:MGRC) last announced its quarterly earnings results on Tuesday, August 2nd. The company reported $0.38 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.34 by $0.04. McGrath RentCorp had a net margin of 11.96% and a return on equity of 12.96%. The company had revenue of $103.10 million for the quarter, compared to analyst estimates of $98.58 million. During the same quarter in the prior year, the business posted $0.32 EPS. McGrath RentCorp’s quarterly revenue was up 7.4% on a year-over-year basis. Equities research analysts anticipate that McGrath RentCorp will post $1.62 EPS for the current year.
In other McGrath RentCorp news, CEO Dennis C. Kakures sold 36,777 shares of the stock in a transaction on Wednesday, September 7th. The shares were sold at an average price of $32.60, for a total value of $1,198,930.20. Following the completion of the sale, the chief executive officer now directly owns 314,224 shares of the company’s stock, valued at approximately $10,243,702.40. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, VP Trease Kristina Van sold 2,266 shares of the stock in a transaction on Wednesday, August 17th. The shares were sold at an average price of $31.74, for a total transaction of $71,922.84. Following the completion of the sale, the vice president now directly owns 16,236 shares of the company’s stock, valued at $515,330.64. The disclosure for this sale can be found here. 5.00% of the stock is currently owned by company insiders.
A number of hedge funds have recently modified their holdings of MGRC. North Star Investment Management Corp. acquired a new position in McGrath RentCorp during the first quarter worth approximately $562,000. Mondrian Investment Partners LTD acquired a new position in McGrath RentCorp during the first quarter worth approximately $3,629,000. Prudential Financial Inc. acquired a new position in McGrath RentCorp during the first quarter worth approximately $599,000. BlackRock Institutional Trust Company N.A. increased its position in McGrath RentCorp by 4.1% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 636,916 shares of the company’s stock worth $15,974,000 after buying an additional 24,942 shares during the last quarter. Finally, Royce & Associates LP increased its position in McGrath RentCorp by 10.0% in the first quarter. Royce & Associates LP now owns 320,400 shares of the company’s stock worth $8,036,000 after buying an additional 29,100 shares during the last quarter. 81.61% of the stock is owned by hedge funds and other institutional investors.
McGrath RentCorp Company Profile
McGrath RentCorp is a diversified business-to-business rental company with four rental divisions: relocatable modular buildings, portable storage containers, electronic test equipment, and liquid and solid containment tanks and boxes. The Company operates in four business segments: modular building and portable storage segment (Mobile Modular); electronic test equipment segment (TRS-RenTelco); a subsidiary providing containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (Adler Tanks), and a subsidiary classroom manufacturing business selling modular buildings used primarily as classrooms in California (Enviroplex).
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