Joseph Hanna, President and CEO of McGrath RentCorp (NASDAQ:MGRC), has sold a significant portion of company stock, according to a recent SEC filing. On November 6 and 7, Hanna sold a total of 19,945 shares of McGrath RentCorp's common stock, totaling approximately $2.4 million. The shares were sold at prices ranging from $119.42 to $122.08 per share. Following these transactions, Hanna retains ownership of 151,304 shares in the company.
In other recent news, McGrath RentCorp reported a 10% increase in total revenues, reaching $267 million in Q3 2024. The company also saw a 13% rise in adjusted EBITDA, which hit $104 million. These positive developments were offset by the termination of an acquisition by WillScot (NASDAQ:WSC), leading to a $180 million termination fee. The company's Modular business displayed resilience, with rental and sales revenues increasing by 9% and 14% respectively. However, the Portable Storage and TRS divisions experienced declines due to reduced commercial activity in the commercial construction sector.
Despite these challenges, McGrath RentCorp remains optimistic about its growth initiatives within the Modular segment. The company also projects full-year total revenues to be between $910 million and $920 million, with adjusted EBITDA expected to range from $345 million to $351 million. These recent developments suggest that McGrath RentCorp is navigating through a complex financial landscape while maintaining a commitment to long-term growth and shareholder value.
InvestingPro Insights
While Joseph Hanna's recent stock sale might raise eyebrows, a closer look at McGrath RentCorp's (NASDAQ:MGRC) financial metrics and performance reveals a company with strong fundamentals. According to InvestingPro data, MGRC boasts a market capitalization of $2.98 billion and a P/E ratio of 13.3, suggesting the stock may be undervalued relative to its earnings.
The company's financial health is further underscored by its impressive gross profit margin of 48.47% for the last twelve months as of Q3 2023. This aligns with one of the InvestingPro Tips, which highlights MGRC's "impressive gross profit margins." Additionally, the company's revenue growth of 12.06% over the same period indicates robust business expansion.
Investors may find comfort in MGRC's dividend history. An InvestingPro Tip notes that the company "has raised its dividend for 27 consecutive years," demonstrating a commitment to shareholder returns. With a current dividend yield of 1.57%, MGRC offers a steady income stream for investors.
The stock's recent performance has been noteworthy, with a 13.66% price total return over the past month and a 21.56% return over the last three months. This strong momentum is reflected in another InvestingPro Tip, which points out the "strong return over the last three months."
For those interested in a deeper analysis, InvestingPro offers 12 additional tips on McGrath RentCorp, providing a comprehensive view of the company's prospects and potential risks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.