StockNews.com Initiates Coverage on McGrath RentCorp (NASDAQ:MGRC)

StockNews.com started coverage on shares of McGrath RentCorp (NASDAQ:MGRC) in a research report released on Sunday. The brokerage issued a hold rating on the financial services provider’s stock.

McGrath RentCorp Stock Performance

Shares of MGRC stock opened at $106.66 on Friday. McGrath RentCorp has a 52-week low of $86.50 and a 52-week high of $130.86. The company has a 50-day simple moving average of $118.89 and a two-hundred day simple moving average of $113.54. The company has a market capitalization of $2.62 billion, a price-to-earnings ratio of 20.79, a PEG ratio of 1.59 and a beta of 0.80.

McGrath RentCorp (NASDAQ:MGRC) last issued its quarterly earnings data on Thursday, April 25th. The financial services provider reported $0.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.73 by $0.20. McGrath RentCorp had a net margin of 14.70% and a return on equity of 13.43%. The business had revenue of $187.80 million during the quarter, compared to the consensus estimate of $145.63 million. During the same period in the prior year, the firm posted $0.89 EPS. The firm’s quarterly revenue was up 14.7% compared to the same quarter last year. On average, sell-side analysts forecast that McGrath RentCorp will post 5.42 EPS for the current fiscal year.

McGrath RentCorp Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, April 30th. Stockholders of record on Tuesday, April 16th were given a dividend of $0.475 per share. This is an increase from McGrath RentCorp’s previous quarterly dividend of $0.47. This represents a $1.90 dividend on an annualized basis and a dividend yield of 1.78%. The ex-dividend date of this dividend was Monday, April 15th. McGrath RentCorp’s dividend payout ratio is currently 37.04%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Adirondack Trust Co. purchased a new stake in shares of McGrath RentCorp during the 3rd quarter valued at approximately $50,000. Global Retirement Partners LLC purchased a new stake in shares of McGrath RentCorp during the 1st quarter valued at approximately $66,000. J.W. Cole Advisors Inc. purchased a new stake in shares of McGrath RentCorp during the 1st quarter valued at approximately $210,000. Vanguard Personalized Indexing Management LLC purchased a new stake in shares of McGrath RentCorp during the 4th quarter valued at approximately $217,000. Finally, Brown Brothers Harriman & Co. purchased a new stake in McGrath RentCorp in the 4th quarter worth approximately $230,000. 92.05% of the stock is owned by institutional investors.

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.