McGrath RentCorp (NASDAQ:MGRC) Vice President, Controller, and Principal Accounting Officer, David M. Whitney, has recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Whitney sold 5,176 shares of McGrath RentCorp's common stock on October 30, 2024. The shares were sold at a weighted average price of $116.998, generating a total of $605,581. Following this transaction, Whitney retains ownership of 205 shares in the company. The sales occurred at prices ranging from $116.61 to $117.015.
In other recent news, McGrath RentCorp reported its Q3 2024 financial results, demonstrating resilience amid challenges. The company's total revenues increased by 10% to $267 million, and adjusted EBITDA rose by 13% to $104 million. The Modular business division showed significant growth, with rental and sales revenues up 9% and 14% respectively. However, the Portable Storage and TRS divisions saw declines due to reduced commercial construction activity.
McGrath RentCorp also reported a $180 million termination fee from its halted acquisition by WillScot (NASDAQ:WSC). Looking forward, the company anticipates continued softness in the Portable Storage and TRS divisions but is optimistic about growth initiatives in the Modular segment. Full-year total revenues are projected to be between $910 million and $920 million, with adjusted EBITDA expected to range from $345 million to $351 million. These are recent developments, reflecting the company's strategy and performance in the current market environment.
InvestingPro Insights
McGrath RentCorp's recent insider sale by David M. Whitney comes at a time when the company's stock is showing strong performance. According to InvestingPro data, MGRC has seen a significant return of 11.46% over the last week and 11.88% over the last month. This recent uptick has contributed to a robust 18.57% total return over the past year.
The company's financial health appears solid, with InvestingPro Tips highlighting that McGrath RentCorp has raised its dividend for 27 consecutive years and maintained dividend payments for 35 consecutive years. This consistent dividend policy is particularly noteworthy given the company's impressive gross profit margins, which stand at 48.47% for the last twelve months as of Q3 2024.
Despite the recent insider sale, McGrath RentCorp's valuation metrics suggest potential value. The company is trading at a P/E ratio of 12.87, which is relatively low compared to its earnings growth. This is further supported by an InvestingPro Tip indicating that MGRC is trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.56 as of Q3 2024.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for McGrath RentCorp, providing a deeper understanding of the company's financial position and market performance.
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