Sidoti Forecasts Increased Earnings for McGrath RentCorp

McGrath RentCorp (NASDAQ:MGRC) – Equities research analysts at Sidoti upped their Q3 2026 earnings estimates for shares of McGrath RentCorp in a note issued to investors on Thursday, July 30th. Sidoti analyst M. Riddick now expects that the financial services provider will earn $1.85 per share for the quarter, up from their previous forecast of $1.79. The consensus estimate for McGrath RentCorp’s current full-year earnings is $6.35 per share. Sidoti also issued estimates for McGrath RentCorp’s Q4 2026 earnings at $2.00 EPS, FY2026 earnings at $6.32 EPS, Q1 2027 earnings at $1.17 EPS, Q2 2027 earnings at $1.63 EPS, Q3 2027 earnings at $2.02 EPS, Q4 2027 earnings at $2.18 EPS and FY2027 earnings at $7.01 EPS.

McGrath RentCorp (NASDAQ:MGRC) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $1.37 EPS for the quarter, missing the consensus estimate of $1.47 by ($0.10). McGrath RentCorp had a net margin of 16.38% and a return on equity of 12.49%. The firm had revenue of $221.11 million during the quarter, compared to analysts’ expectations of $236.51 million.

Separately, Weiss Ratings raised shares of McGrath RentCorp from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $141.50.

McGrath RentCorp Stock Performance

Shares of MGRC stock opened at $115.00 on Friday. McGrath RentCorp has a 52-week low of $94.99 and a 52-week high of $127.68. The company has a 50-day simple moving average of $115.56 and a two-hundred day simple moving average of $113.40. The company has a market capitalization of $2.82 billion, a price-to-earnings ratio of 18.52, a PEG ratio of 1.19 and a beta of 0.43.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. River Road Asset Management LLC grew its position in shares of McGrath RentCorp by 3.1% during the 4th quarter. River Road Asset Management LLC now owns 2,131,121 shares of the financial services provider’s stock valued at $223,619,000 after acquiring an additional 64,566 shares during the period. Comerica Bank raised its holdings in shares of McGrath RentCorp by 96.8% in the 4th quarter. Comerica Bank now owns 58,374 shares of the financial services provider’s stock worth $6,125,000 after purchasing an additional 28,719 shares during the period. Gabelli Funds LLC lifted its stake in McGrath RentCorp by 28.8% in the fourth quarter. Gabelli Funds LLC now owns 49,243 shares of the financial services provider’s stock valued at $5,167,000 after purchasing an additional 11,011 shares during the last quarter. Tributary Capital Management LLC purchased a new position in McGrath RentCorp in the fourth quarter valued at approximately $9,063,000. Finally, Fifth Third Bancorp bought a new position in McGrath RentCorp during the first quarter valued at $6,990,000. 92.05% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at McGrath RentCorp

In related news, CAO David M. Whitney sold 3,783 shares of the business’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $113.65, for a total value of $429,937.95. Following the transaction, the chief accounting officer directly owned 6,533 shares of the company’s stock, valued at approximately $742,475.45. The trade was a 36.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Joseph F. Hanna sold 7,500 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $120.64, for a total transaction of $904,800.00. Following the transaction, the director owned 151,549 shares of the company’s stock, valued at approximately $18,282,871.36. The trade was a 4.72% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 30,051 shares of company stock worth $3,486,240. 1.40% of the stock is owned by company insiders.

McGrath RentCorp Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 17th will be paid a dividend of $0.495 per share. This represents a $1.98 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, July 17th. McGrath RentCorp’s payout ratio is presently 31.88%.

Trending Headlines about McGrath RentCorp

Here are the key news stories impacting McGrath RentCorp this week:

• Positive Sentiment: Rental operations revenue increased 6% year over year to $172.5 million, while TRS-RenTelco rental revenue rose 17% to $31.8 million. Management also plans to increase gross rental capital expenditures to $200 million-$220 million, signaling continued investment in fleet expansion and future rental growth. McGrath 2026 revenue and capital expenditure outlook
• Positive Sentiment: McGrath maintained a relatively constructive full-year outlook, forecasting 2026 revenue of $955 million-$985 million and adjusted EBITDA of $363 million-$375 million. The revenue range is broadly consistent with the $967.3 million analyst consensus, while the company declared a quarterly dividend of $0.495 per share. McGrath second-quarter 2026 results
• Neutral Sentiment: The higher rental capital spending could support long-term revenue growth, but it also represents a larger near-term cash investment. Management highlighted rental revenue growth and strategic initiatives during its earnings call. McGrath RentCorp Q2 2026 earnings call highlights
• Negative Sentiment: Second-quarter adjusted earnings were $1.37 per share, below estimates of approximately $1.46-$1.47 and unchanged from $1.46 a year earlier. Revenue fell 6% to $221.1 million, missing expectations of roughly $236.5 million, while net income declined to $33.7 million from $36.0 million. McGrath misses second-quarter earnings and revenue estimates
• Negative Sentiment: Sales revenue dropped 34% to $46.4 million, contributing to a 7% decline in operating income. The earnings shortfall and weaker overall revenue were the primary reasons for the negative investor reaction. McGrath RentCorp second-quarter revenue report

McGrath RentCorp Company Profile

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.