LIVERMORE, Calif.—Wescott Tara, vice president of human resources at McGrath Rentcorp (NASDAQ: MGRC), recently sold some of his stake in the company. Tara sold a total of 1,379 shares of McGrath Rentcorp common stock, according to a Form 4 filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $117.4773, for a total transaction of $162,001.
Following the transaction, Tara will retain ownership of 2,244 shares in the company. The stock sales were conducted in multiple transactions ranging from $117.4522 to $117.51 per share.
In other recent news, McGrath Rentcorp reported significant growth in its third quarter 2024 financial results despite facing some challenges. The company’s total revenue increased 10% to $267 million, and adjusted EBITDA increased 13% to $104 million. This growth was particularly strong in the modular business, where rental revenue increased by 9% and sales revenue increased by 14%. However, the portable storage and TRS segments declined due to a decline in commercial construction activity.
McGrath Rentcorp also received a $180 million termination fee from Wilscot (NASDAQ:) following the cancellation of the planned acquisition. Looking ahead, McGrath Rentcorp expects demand for portable storage and TRS to remain soft, but remains optimistic about its modular sector’s growth efforts. The company’s full-year total revenue is expected to be between $910 million and $920 million, with adjusted EBITDA between $345 million and $351 million.
Analysts from various companies point to the company’s disciplined fleet management and termination fees from WillScott as potential sources of capital allocation flexibility for future investments and increased shareholder value. There is. These recent developments reflect McGrath Rentcorp’s resilience and commitment to growth amidst a challenging market environment.
Investment Pro Insights
While Wescot Tara’s recent share sale may raise some eyebrows, it is important to consider McGrath Rentcorp’s overall financial health and market position. The company has a market capitalization of $2.9 billion and has demonstrated solid financial performance, according to InvestingPro data.
As of Q3 2024, McGrath Rentcorp’s trailing twelve-month revenue growth rate of 12.06% indicates a solid business trajectory. This growth is complemented by an impressive gross margin of 48.47%, demonstrating the company’s ability to maintain profitability while expanding its operations.
InvestingPro Tips highlights McGrath Rentcorp’s solid dividend history, with 27 consecutive years of dividend increases and 35 years of consistent payouts. This consistency in shareholder returns speaks to the company’s financial stability and commitment to investor value.
The company’s P/E ratio of 12.87 suggests that it may be undervalued relative to its earnings, especially when considering its growth prospects. This is further supported by a tip from InvestingPro that shows MGRC is trading at a low P/E ratio relative to its near-term earnings growth.
For investors looking for a more comprehensive analysis, InvestingPro provides 11 additional tips on McGrath Rentcorp to help you better understand the company’s financial health and market position.
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