McGrath RentCorp (NASDAQ:MGRC) Shares Gap Up on Earnings Beat

Shares of McGrath RentCorp (NASDAQ:MGRC) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $105.22, but opened at $115.03. McGrath RentCorp shares last traded at $114.02, with a volume of 131,107 shares changing hands.

The financial services provider reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.39 by $0.48. The business had revenue of $266.76 million for the quarter, compared to the consensus estimate of $227.76 million. McGrath RentCorp had a net margin of 13.39% and a return on equity of 13.33%. McGrath RentCorp’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same period last year, the company posted $1.65 EPS.

McGrath RentCorp Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 31st. Investors of record on Thursday, October 17th will be given a $0.475 dividend. The ex-dividend date is Thursday, October 17th. This represents a $1.90 dividend on an annualized basis and a dividend yield of 1.66%. McGrath RentCorp’s dividend payout ratio is 40.25%.

Wall Street Analysts Forecast Growth

MGRC has been the topic of a number of analyst reports. StockNews.com upgraded shares of McGrath RentCorp from a “sell” rating to a “hold” rating in a research report on Tuesday. Oppenheimer raised their target price on shares of McGrath RentCorp from $120.00 to $124.00 and gave the stock an “outperform” rating in a report on Friday.

Institutional Trading of McGrath RentCorp

Hedge funds have recently bought and sold shares of the stock. SG Americas Securities LLC acquired a new stake in McGrath RentCorp during the 1st quarter worth approximately $171,000. TFG Advisers LLC acquired a new stake in McGrath RentCorp during the 1st quarter worth approximately $203,000. J.W. Cole Advisors Inc. acquired a new stake in McGrath RentCorp during the 1st quarter worth approximately $210,000. Meeder Asset Management Inc. acquired a new stake in shares of McGrath RentCorp in the first quarter valued at approximately $213,000. Finally, Wealth Enhancement Advisory Services LLC raised its holdings in shares of McGrath RentCorp by 5.4% in the third quarter. Wealth Enhancement Advisory Services LLC now owns 2,024 shares of the financial services provider’s stock valued at $213,000 after purchasing an additional 104 shares during the last quarter. 92.05% of the stock is currently owned by institutional investors and hedge funds.

McGrath RentCorp Stock Up 8.5 %

The company has a market capitalization of $2.80 billion, a price-to-earnings ratio of 24.19, a P/E/G ratio of 1.82 and a beta of 0.75. The stock’s fifty day moving average price is $105.85 and its 200-day moving average price is $107.39.

McGrath RentCorp Company Profile

McGrath RentCorp operates as a business to business rental company in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, and electronic test equipment. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex.