McGrath RentCorp (NASDAQ:MGRC) Sees Strong Trading Volume – What’s Next?

McGrath RentCorp (NASDAQ:MGRC) saw strong trading volume on Monday . 149,836 shares changed hands during mid-day trading, a decline of 1% from the previous session’s volume of 150,954 shares.The stock last traded at $108.04 and had previously closed at $107.53.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Zacks Research raised shares of McGrath RentCorp from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 15th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of McGrath RentCorp in a report on Tuesday, January 27th. Finally, Barclays started coverage on McGrath RentCorp in a research report on Wednesday, February 11th. They set an “overweight” rating and a $140.00 price target on the stock. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $141.50.

McGrath RentCorp Stock Up 0.6%

The firm has a market cap of $2.66 billion, a price-to-earnings ratio of 17.03, a price-to-earnings-growth ratio of 1.06 and a beta of 0.49. The company’s 50-day moving average price is $111.58 and its 200-day moving average price is $110.31.

McGrath RentCorp (NASDAQ:MGRC) last issued its quarterly earnings results on Wednesday, February 25th. The financial services provider reported $2.02 earnings per share for the quarter, beating analysts’ consensus estimates of $1.74 by $0.28. McGrath RentCorp had a net margin of 16.55% and a return on equity of 13.21%. The firm had revenue of $256.76 million for the quarter, compared to analyst estimates of $254.32 million. Analysts predict that McGrath RentCorp will post 6.18 earnings per share for the current fiscal year.

McGrath RentCorp Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Thursday, April 16th will be given a $0.495 dividend. This represents a $1.98 annualized dividend and a dividend yield of 1.8%. This is a boost from McGrath RentCorp’s previous quarterly dividend of $0.49. The ex-dividend date is Thursday, April 16th. McGrath RentCorp’s dividend payout ratio (DPR) is 30.55%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. lifted its holdings in McGrath RentCorp by 690,151.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 296,808 shares of the financial services provider’s stock valued at $31,144,000 after purchasing an additional 296,765 shares in the last quarter. Channing Capital Management LLC raised its position in shares of McGrath RentCorp by 39.1% in the fourth quarter. Channing Capital Management LLC now owns 836,894 shares of the financial services provider’s stock valued at $87,815,000 after buying an additional 235,311 shares during the last quarter. Alyeska Investment Group L.P. raised its position in shares of McGrath RentCorp by 752.5% in the fourth quarter. Alyeska Investment Group L.P. now owns 237,506 shares of the financial services provider’s stock valued at $24,922,000 after buying an additional 209,646 shares during the last quarter. Raymond James Financial Inc. lifted its stake in shares of McGrath RentCorp by 102.8% in the third quarter. Raymond James Financial Inc. now owns 303,205 shares of the financial services provider’s stock worth $35,566,000 after buying an additional 153,701 shares in the last quarter. Finally, Tredje AP fonden acquired a new position in McGrath RentCorp during the fourth quarter worth about $12,246,000. 92.05% of the stock is owned by institutional investors and hedge funds.

About McGrath RentCorp

McGrath RentCorp, through its subsidiaries, provides rental, sales, and servicing of equipment for commercial, industrial, environmental, and residential markets. The company operates primarily through two segments—mobile storage and water management—offering flexible solutions for customers requiring on-site storage, water transport, treatment, and dewatering services.

In its mobile storage segment, McGrath RentCorp supplies portable storage containers and modular office units to sectors including construction, retail, government, and disaster restoration.