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

McGrath RentCorp (NASDAQ:MGRC - Get Free Report) 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 of this dividend 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

MGRC has been the subject of several recent analyst reports. StockNews.com upgraded shares of McGrath RentCorp from a "sell" rating to a "hold" rating in a research report on Tuesday. Oppenheimer boosted their price target on shares of McGrath RentCorp from $120.00 to $124.00 and gave the company an "outperform" rating in a research report on Friday.

Institutional Investors Weigh In On McGrath RentCorp

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MGRC. SG Americas Securities LLC purchased a new stake in McGrath RentCorp in the 1st quarter valued at $171,000. TFG Advisers LLC purchased a new stake in shares of McGrath RentCorp in the first quarter valued at about $203,000. J.W. Cole Advisors Inc. acquired a new stake in shares of McGrath RentCorp during the first quarter worth about $210,000. Meeder Asset Management Inc. acquired a new stake in shares of McGrath RentCorp during the first quarter worth about $213,000. Finally, Wealth Enhancement Advisory Services LLC grew its holdings in shares of McGrath RentCorp by 5.4% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 2,024 shares of the financial services provider's stock worth $213,000 after buying an additional 104 shares during the last quarter. Hedge funds and other institutional investors own 92.05% of the company's stock.

McGrath RentCorp Stock Performance

The company has a 50-day moving average of $105.85 and a 200-day moving average of $107.39. The stock has a market cap of $2.80 billion, a price-to-earnings ratio of 24.19, 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.