Elizabeth A. Fetter, a director at McGrath Rentcorp (NASDAQ:MGRC), recently sold 3,000 shares of common stock. The shares were sold at an average price of $115.34 per share, totaling approximately $346,028. Following this transaction, Fetter holds 3,970 shares in McGrath Rentcorp. The sale was documented in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, McGrath RentCorp reported a 10% increase in total revenues to $267 million in Q3 2024, alongside a 13% rise in adjusted EBITDA to $104 million. Growth was particularly noticeable in the Modular business, with rental and sales revenues up by 9% and 14%, respectively. However, the Portable Storage and TRS divisions saw revenue declines due to reduced commercial construction activity. A significant event of the quarter was the termination of an acquisition by WillScot (NASDAQ:WSC), resulting in a $180 million termination fee for McGrath RentCorp. Looking ahead, the company anticipates continued softness in Portable Storage and TRS, yet remains optimistic about growth initiatives in the Modular segment. Full-year total revenues are projected to range between $910 million and $920 million, with adjusted EBITDA expected to fall between $345 million and $351 million. These recent developments highlight the company's strategic focus on enhancing customer service and expanding its geographic footprint, despite challenges in certain segments.
InvestingPro Insights
While Director Elizabeth A. Fetter's recent sale of McGrath Rentcorp (NASDAQ:MGRC) shares may raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, McGrath Rentcorp boasts a market capitalization of $2.9 billion and has demonstrated solid financial performance.
The company's revenue growth of 12.06% over the last twelve months, coupled with an impressive gross profit margin of 48.47%, suggests a robust business model. This is further supported by an InvestingPro Tip highlighting McGrath Rentcorp's "impressive gross profit margins."
Investors may find comfort in the company's dividend history. An InvestingPro Tip notes that McGrath Rentcorp "has raised its dividend for 27 consecutive years," indicating a strong commitment to shareholder returns. The current dividend yield stands at 1.62%, with a dividend growth rate of 2.15% over the last twelve months.
Despite the recent insider sale, the stock has shown significant momentum, with a 10.4% return over the last week and an 11.88% return over the past month. This positive performance aligns with another InvestingPro Tip highlighting the "significant return over the last week."
For those considering McGrath Rentcorp's valuation, the company trades at a P/E ratio of 12.87, which could be seen as attractive given its growth prospects. An InvestingPro Tip suggests that the company is "trading at a low P/E ratio relative to near-term earnings growth," potentially indicating an undervalued stock.
It's worth noting that InvestingPro offers 11 additional tips for McGrath Rentcorp, providing a more comprehensive analysis for investors seeking deeper insights into the company's prospects and financial health.
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