MGRC McGrath RentCorp

Wedge Capital Management L L P NC has acquired a new stake of 19,956 shares, valued at approximately $2.34 million, in McGrath RentCorp (NASDAQ:MGRC) during the third quarter. This new position represents about 0.08% ownership of the financial services provider, where institutional investors collectively hold around 92.05% of the stock. The news comes as McGrath RentCorp missed Q3 earnings expectations and announced a quarterly dividend of $0.485 per share, alongside an insider stock sale by SVP Gilda Malek.

Zacks Research has downgraded McGrath RentCorp (NASDAQ:MGRC) from a "hold" to a "strong sell" rating following disappointing Q3 earnings, where the company missed both EPS and revenue estimates. While other analysts like Oppenheimer maintain an "outperform" rating, the average MarketBeat rating for MGRC is now "Hold" with an average price target of $143. The article also details recent insider selling and institutional investment activity in McGrath RentCorp.

McGrath RentCorp (MGRC) has recently seen a 13% share price increase, outperforming industrial peers despite a negative three-month performance. The company is currently considered 26.8% undervalued with a narrative fair value of $147 against its closing price of $107.66, primarily due to its stable recurring rental revenues and potential for continued earnings growth. However, softer utilization and higher operating costs pose potential risks to its valuation.

McGrath RentCorp (MGRC) has recently seen its share price climb by 13% this month, despite a negative performance over the past three months. Simply Wall St's analysis suggests MGRC is undervalued, with a fair value of $147 against its current closing price of $107.66. The valuation is supported by durable rental economics with increasing adoption of rental models, contributing to stable, higher-margin recurring revenues.

McGrath RentCorp (NASDAQ:MGRC) announced a quarterly cash dividend of $0.485 per common share, payable on January 30, 2026, to shareholders of record on January 16, 2026. This marks the 34th consecutive year the company has increased its dividend. The declaration comes after the company reported third-quarter 2025 earnings that missed analyst expectations, with EPS at $1.72 against an anticipated $1.82 and revenue of $256.4 million below the forecasted $266.62 million.

Eminence Capital LP increased its stake in McGrath RentCorp (NASDAQ:MGRC) by 6.5% in the second quarter, acquiring an additional 54,971 shares to bring its total holding to 895,042 shares, valued at $103.79 million. Other institutional investors like Channing Capital Management, Loomis Sayles, Allianz Asset Management, T. Rowe Price Investment Management Inc., and Ameriprise Financial Inc. also significantly increased their positions, leading to 92.05% institutional ownership. Despite strong institutional interest, McGrath RentCorp missed its Q2 EPS and reported a 3.9% year-over-year revenue decrease, though it declared a quarterly dividend of $0.485.