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

McGrath RentCorp (NASDAQ:MGRC) shares 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 traded.

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

McGrath RentCorp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 31st. Shareholders of record on Thursday, October 17th will be given a dividend of $0.475 per share. This represents a $1.90 dividend on an annualized basis and a yield of 1.67%. The ex-dividend date of this dividend is Thursday, October 17th. McGrath RentCorp’s payout ratio is currently 40.25%.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MGRC. Oppenheimer started coverage on shares of McGrath RentCorp in a research note on Wednesday, September 25th. They set an “outperform” rating and a $120.00 price objective for the company. StockNews.com raised McGrath RentCorp from a “sell” rating to a “hold” rating in a report on Tuesday.

Institutional Trading of McGrath RentCorp

A number of hedge funds have recently bought and sold shares of the company. SG Americas Securities LLC acquired a new stake in shares of McGrath RentCorp during the first quarter worth $171,000. TFG Advisers LLC acquired a new stake in McGrath RentCorp in the 1st quarter worth about $203,000. J.W. Cole Advisors Inc. purchased a new stake in McGrath RentCorp in the 1st quarter valued at about $210,000. Meeder Asset Management Inc. acquired a new position in shares of McGrath RentCorp during the 1st quarter valued at about $213,000. Finally, Wealth Enhancement Advisory Services LLC lifted its holdings in shares of McGrath RentCorp by 5.4% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 2,024 shares of the financial services provider’s stock worth $213,000 after acquiring an additional 104 shares during the period. Institutional investors and hedge funds own 92.05% of the company’s stock.

McGrath RentCorp Price Performance

The company’s 50-day moving average is $105.67 and its 200-day moving average is $107.44. The firm has a market capitalization of $2.80 billion, a price-to-earnings ratio of 23.85, a PEG 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.