McGrath RentCorp (MGRC) Upgraded by Zacks Investment Research to “Buy”
McGrath RentCorp (NASDAQ:MGRC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Thursday. The firm presently has a $38.00 price target on the financial services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 11.37% from the stock’s previous close.
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. “
Shares of McGrath RentCorp (NASDAQ MGRC) traded up 1.28% on Thursday, reaching $34.12. 165,065 shares of the company’s stock traded hands. The stock has a 50-day moving average price of $34.43 and a 200-day moving average price of $35.93. The company has a market cap of $818.23 million, a PE ratio of 20.58 and a beta of 0.98. McGrath RentCorp has a 12-month low of $28.88 and a 12-month high of $39.86.
McGrath RentCorp (NASDAQ:MGRC) last released its quarterly earnings results on Tuesday, May 2nd. The financial services provider reported $0.33 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.05. McGrath RentCorp had a net margin of 9.33% and a return on equity of 10.14%. The business had revenue of $94.84 million for the quarter, compared to analysts’ expectations of $95.10 million. Equities research analysts anticipate that McGrath RentCorp will post $1.81 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, July 31st. Stockholders of record on Monday, July 17th will be issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 3.05%. The ex-dividend date is Thursday, July 13th. McGrath RentCorp’s dividend payout ratio is currently 63.03%.
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In other news, VP Philip B. Hawkins sold 1,500 shares of the firm’s stock in a transaction dated Wednesday, May 10th. The shares were sold at an average price of $36.00, for a total value of $54,000.00. Following the sale, the vice president now directly owns 3,624 shares in the company, valued at approximately $130,464. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Joseph F. Hanna sold 6,000 shares of the firm’s stock in a transaction dated Monday, May 8th. The shares were sold at an average price of $34.55, for a total transaction of $207,300.00. Following the completion of the sale, the chief executive officer now owns 30,087 shares in the company, valued at $1,039,505.85. The disclosure for this sale can be found here. Insiders sold a total of 12,500 shares of company stock worth $442,090 over the last 90 days. Company insiders own 5.00% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in McGrath RentCorp during the fourth quarter worth $16,302,000. Vanguard Group Inc. boosted its stake in McGrath RentCorp by 17.0% in the first quarter. Vanguard Group Inc. now owns 2,093,570 shares of the financial services provider’s stock worth $70,282,000 after buying an additional 304,573 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in McGrath RentCorp during the fourth quarter worth $8,719,000. Renaissance Technologies LLC boosted its stake in McGrath RentCorp by 36.5% in the first quarter. Renaissance Technologies LLC now owns 571,595 shares of the financial services provider’s stock worth $19,188,000 after buying an additional 152,800 shares in the last quarter. Finally, Numeric Investors LLC boosted its stake in McGrath RentCorp by 72.4% in the fourth quarter. Numeric Investors LLC now owns 285,971 shares of the financial services provider’s stock worth $11,207,000 after buying an additional 120,128 shares in the last quarter. Institutional investors and hedge funds own 82.52% of the company’s stock.
About McGrath RentCorp
McGrath RentCorp is a diversified business-to-business rental company. The Company operates through 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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