McGrath RentCorp (MGRC) Downgraded by Zacks Investment Research to Sell
McGrath RentCorp (NASDAQ:MGRC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Thursday.
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. “
MGRC has been the topic of a number of other reports. TheStreet upgraded shares of McGrath RentCorp from a “hold” rating to a “buy” rating in a research note on Friday, June 10th. Sidoti boosted 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.
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McGrath RentCorp (NASDAQ:MGRC) opened at 31.73 on Thursday. The stock’s 50 day moving average is $31.81 and its 200 day moving average is $29.16. McGrath RentCorp has a one year low of $21.46 and a one year high of $33.35. The company has a market capitalization of $758.57 million, a PE ratio of 18.89 and a beta of 1.05.
McGrath RentCorp (NASDAQ:MGRC) last released its quarterly earnings results on Tuesday, August 2nd. The company reported $0.38 earnings per share for the quarter, topping the 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 business had revenue of $103.10 million for the quarter, compared to analysts’ expectations of $98.58 million. During the same period in the previous year, the company earned $0.32 earnings per share. The firm’s revenue for the quarter was up 7.4% compared to the same quarter last year. On average, analysts anticipate that McGrath RentCorp will post $1.62 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 31st. Shareholders of record on Monday, October 17th will be paid a $0.255 dividend. This represents a $1.02 dividend on an annualized basis and a yield of 3.21%. The ex-dividend date of this dividend is Thursday, October 13th. McGrath RentCorp’s payout ratio is 61.08%.
In other news, CEO Dennis C. Kakures sold 16,248 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $32.63, for a total value of $530,172.24. Following the sale, the chief executive officer now owns 314,224 shares of the company’s stock, valued at $10,253,129.12. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP Trease Kristina Van sold 2,266 shares of the business’s stock in a transaction that occurred 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 in the company, valued at approximately $515,330.64. The disclosure for this sale can be found here. 5.00% of the stock is currently owned by company insiders.
Several hedge funds have recently bought and sold shares of MGRC. Legal & General Group Plc raised its stake in McGrath RentCorp by 14.7% in the first quarter. Legal & General Group Plc now owns 5,090 shares of the company’s stock valued at $129,000 after buying an additional 652 shares during the period. Royal Bank of Canada raised its stake in McGrath RentCorp by 44.3% in the second quarter. Royal Bank of Canada now owns 4,377 shares of the company’s stock valued at $134,000 after buying an additional 1,343 shares during the period. BlackRock Inc. raised its stake in McGrath RentCorp by 338.3% in the second quarter. BlackRock Inc. now owns 6,684 shares of the company’s stock valued at $204,000 after buying an additional 5,159 shares during the period. Norman Fields Gottscho Capital Management LLC acquired a new stake in McGrath RentCorp during the third quarter valued at about $227,000. Finally, Acadian Asset Management LLC acquired a new stake in McGrath RentCorp during the second quarter valued at about $239,000. 81.61% of the stock is currently owned by institutional investors.
About McGrath RentCorp
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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