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

McGrath RentCorp (NASDAQ:MGRC) shares gapped up prior to trading 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 earnings per share for the quarter, beating analysts’ consensus estimates of $1.39 by $0.48. The company had revenue of $266.76 million for the quarter, compared to analysts’ expectations of $227.76 million. McGrath RentCorp had a return on equity of 13.33% and a net margin of 13.39%. McGrath RentCorp’s quarterly revenue was up 9.5% on a year-over-year basis. During the same period last year, the firm earned $1.65 earnings per share.

McGrath RentCorp Dividend Announcement

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

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Oppenheimer boosted their price objective on shares of McGrath RentCorp from $120.00 to $124.00 and gave the stock an “outperform” rating in a research report on Friday. StockNews.com raised shares of McGrath RentCorp from a “sell” rating to a “hold” rating in a research report on Tuesday, October 22nd.

Institutional Investors Weigh In On McGrath RentCorp

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Swedbank AB raised its holdings in shares of McGrath RentCorp by 66.7% in the second quarter. Swedbank AB now owns 200,000 shares of the financial services provider’s stock valued at $21,310,000 after buying an additional 80,000 shares during the last quarter. Quantbot Technologies LP acquired a new stake in McGrath RentCorp during the 1st quarter worth approximately $1,008,000. Vaughan Nelson Investment Management L.P. lifted its position in McGrath RentCorp by 26.0% during the 2nd quarter. Vaughan Nelson Investment Management L.P. now owns 486,190 shares of the financial services provider’s stock worth $51,803,000 after acquiring an additional 100,210 shares during the period. Vanguard Group Inc. grew its stake in shares of McGrath RentCorp by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 2,691,278 shares of the financial services provider’s stock valued at $321,931,000 after purchasing an additional 11,280 shares during the last quarter. Finally, Gabelli Funds LLC increased its holdings in shares of McGrath RentCorp by 297.8% in the first quarter. Gabelli Funds LLC now owns 59,670 shares of the financial services provider’s stock valued at $7,361,000 after purchasing an additional 44,670 shares during the period. Hedge funds and other institutional investors own 92.05% of the company’s stock.

McGrath RentCorp Price Performance

The company has a 50 day moving average price of $105.85 and a 200 day moving average price of $107.30. The firm has a market cap of $2.80 billion, a PE ratio of 24.19, a PEG ratio of 1.82 and a beta of 0.75.

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.