McGrath RentCorp (MGRC) Rating Increased to Buy at Zacks Investment Research
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 Tuesday. The firm presently has a $41.00 target price on the stock. Zacks Investment Research’s target price would indicate a potential upside of 11.26% from the stock’s current price.
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. “
Separately, Sidoti boosted their price target on McGrath RentCorp from $36.00 to $40.00 and gave the stock a “buy” rating in a research note on Wednesday, September 14th.
Shares of McGrath RentCorp (NASDAQ:MGRC) opened at 36.85 on Tuesday. The company’s 50-day moving average price is $32.75 and its 200-day moving average price is $31.12. The stock has a market cap of $880.97 million, a PE ratio of 21.93 and a beta of 1.02. McGrath RentCorp has a one year low of $21.46 and a one year high of $37.25.
McGrath RentCorp (NASDAQ:MGRC) last posted its quarterly earnings results on Tuesday, November 1st. The company reported $0.54 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.52 by $0.02. McGrath RentCorp had a return on equity of 10.44% and a net margin of 9.44%. The firm earned $122 million during the quarter, compared to analysts’ expectations of $114.10 million. During the same quarter in the previous year, the business earned $0.54 earnings per share. The company’s revenue was up 7.9% on a year-over-year basis. Equities research analysts anticipate that McGrath RentCorp will post $1.65 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Monday, October 31st. Stockholders of record on Monday, October 17th were paid a $0.255 dividend. This represents a $1.02 annualized dividend and a dividend yield of 2.77%. The ex-dividend date of this dividend was Thursday, October 13th. McGrath RentCorp’s dividend payout ratio is currently 61.08%.
In related news, Director Elizabeth A. Fetter sold 800 shares of McGrath RentCorp stock in a transaction on Thursday, November 17th. The stock was sold at an average price of $35.84, for a total value of $28,672.00. Following the completion of the sale, the director now owns 3,500 shares of the company’s stock, valued at $125,440. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Keith E. Pratt sold 2,599 shares of McGrath RentCorp stock in a transaction on Friday, November 18th. The stock was sold at an average price of $36.03, for a total value of $93,641.97. Following the completion of the sale, the chief financial officer now directly owns 30,099 shares of the company’s stock, valued at approximately $1,084,466.97. The disclosure for this sale can be found here. 5.00% of the stock is owned by insiders.
Hedge funds have recently modified their holdings of the company. Royal Bank of Canada raised its stake in shares of 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 last quarter. SG Americas Securities LLC purchased a new stake in shares of McGrath RentCorp during the third quarter valued at approximately $158,000. Robeco Institutional Asset Management B.V. purchased a new stake in shares of McGrath RentCorp during the third quarter valued at approximately $201,000. Highbridge Capital Management LLC purchased a new stake in shares of McGrath RentCorp during the third quarter valued at approximately $211,000. Finally, BlackRock Inc. raised its stake in shares of 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 last quarter. 80.73% of the stock is 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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