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

McGrath RentCorp (NASDAQ:MGRC) shares gapped up before the market opened on Friday following a better than expected earnings announcement. 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 EPS for the quarter, topping the consensus estimate of $1.39 by $0.48. McGrath RentCorp had a return on equity of 13.33% and a net margin of 13.39%. The business had revenue of $266.76 million for the quarter, compared to analyst estimates of $227.76 million. During the same quarter in the previous year, the company earned $1.65 EPS. The company’s quarterly revenue was up 9.5% on a year-over-year basis.

McGrath RentCorp Announces Dividend

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

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Oppenheimer upped their target price on McGrath RentCorp from $120.00 to $124.00 and gave the company an “outperform” rating in a research note on Friday. StockNews.com raised shares of McGrath RentCorp from a “sell” rating to a “hold” rating in a research note on Tuesday, October 22nd.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Semanteon Capital Management LP purchased a new stake in shares of McGrath RentCorp in the third quarter valued at $537,000. Wealth Enhancement Advisory Services LLC boosted its stake in McGrath RentCorp by 5.4% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 2,024 shares of the financial services provider’s stock worth $213,000 after buying an additional 104 shares during the last quarter. Dakota Wealth Management grew its holdings in McGrath RentCorp by 3.9% in the 3rd quarter. Dakota Wealth Management now owns 6,098 shares of the financial services provider’s stock valued at $642,000 after buying an additional 228 shares during the period. Raymond James & Associates increased its stake in shares of McGrath RentCorp by 47.2% during the 3rd quarter. Raymond James & Associates now owns 67,140 shares of the financial services provider’s stock valued at $7,068,000 after acquiring an additional 21,540 shares during the last quarter. Finally, Swedbank AB increased its stake in shares of McGrath RentCorp by 25.0% during the 3rd quarter. Swedbank AB now owns 250,000 shares of the financial services provider’s stock valued at $26,320,000 after acquiring an additional 50,000 shares during the last quarter. 92.05% of the stock is currently owned by institutional investors and hedge funds.

McGrath RentCorp Stock Performance

The company’s fifty day moving average price is $105.85 and its two-hundred day moving average price is $107.30. The firm has a market capitalization of $2.80 billion, a PE ratio of 24.19, a price-to-earnings-growth ratio of 1.82 and a beta of 0.75.

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.