McGrath RentCorp (NASDAQ:MGRC) Hits New 12-Month High Following Strong Earnings

McGrath RentCorp (NASDAQ:MGRC) hit a new 52-week high on Thursday following a better than expected earnings announcement. The company traded as high as $129.56 and last traded at $126.98, with a volume of 86476 shares. The stock had previously closed at $123.85.

The financial services provider reported $1.58 EPS for the quarter, topping the consensus estimate of $1.50 by $0.08. The business had revenue of $243.75 million during the quarter, compared to analysts’ expectations of $246.93 million. McGrath RentCorp had a return on equity of 13.64% and a net margin of 25.29%.

McGrath RentCorp Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Stockholders of record on Wednesday, April 16th will be given a $0.485 dividend. This represents a $1.94 annualized dividend and a dividend yield of 1.50%. The ex-dividend date of this dividend is Wednesday, April 16th. This is a boost from McGrath RentCorp’s previous quarterly dividend of $0.48. McGrath RentCorp’s dividend payout ratio (DPR) is 20.77%.

Analysts Set New Price Targets

Several analysts have recently commented on the company. StockNews.com cut McGrath RentCorp from a “buy” rating to a “hold” rating in a research report on Thursday. CJS Securities initiated coverage on McGrath RentCorp in a report on Wednesday, December 11th. They set an “outperform” rating and a $152.00 price objective for the company. Finally, Oppenheimer increased their price objective on McGrath RentCorp from $124.00 to $139.00 and gave the stock an “outperform” rating in a report on Friday, November 22nd.

Insider Buying and Selling

In other McGrath RentCorp news, VP Gilda Malek sold 919 shares of the firm’s stock in a transaction dated Monday, December 9th. The stock was sold at an average price of $121.78, for a total transaction of $111,915.82. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 1.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On McGrath RentCorp

Several institutional investors have recently bought and sold shares of the stock. Mackenzie Financial Corp bought a new position in McGrath RentCorp during the fourth quarter valued at about $400,000. Forum Financial Management LP raised its holdings in McGrath RentCorp by 11.2% during the fourth quarter. Forum Financial Management LP now owns 2,142 shares of the financial services provider’s stock valued at $240,000 after buying an additional 216 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in McGrath RentCorp by 13.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 73,289 shares of the financial services provider’s stock valued at $8,195,000 after buying an additional 8,500 shares in the last quarter. Squarepoint Ops LLC raised its holdings in McGrath RentCorp by 24.2% during the fourth quarter. Squarepoint Ops LLC now owns 14,624 shares of the financial services provider’s stock valued at $1,635,000 after buying an additional 2,851 shares in the last quarter. Finally, Two Sigma Advisers LP raised its holdings in McGrath RentCorp by 30.2% during the fourth quarter. Two Sigma Advisers LP now owns 136,662 shares of the financial services provider’s stock valued at $15,282,000 after buying an additional 31,700 shares in the last quarter. 92.05% of the stock is currently owned by institutional investors.

McGrath RentCorp Price Performance

The company has a fifty day simple moving average of $117.76 and a two-hundred day simple moving average of $112.93. The company has a market capitalization of $3.17 billion, a P/E ratio of 14.09, a price-to-earnings-growth ratio of 1.23 and a beta of 0.77.

About McGrath RentCorp

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.