Kristina Van Trease, the Chief Strategy Officer of McGrath RentCorp (NASDAQ:MGRC), has sold a significant portion of her holdings in the company, according to a recent SEC filing. On October 30, Van Trease disposed of 5,176 shares of common stock at an average price of $116.998 per share, totaling approximately $605,581. Following this transaction, Van Trease retains 205 shares, which are held indirectly through her spouse's account. The sales occurred at prices ranging from $116.61 to $117.015 per share.
In other recent news, McGrath RentCorp reported notable developments in its Q3 2024 financial results. The company saw a 10% increase in total revenues, reaching $267 million, and a 13% rise in adjusted EBITDA to $104 million. This growth was primarily led by the Modular business, which reported a 9% increase in rental revenues and a 14% rise in sales revenues.
However, the Portable Storage and TRS divisions faced some challenges, with both experiencing declines due to a reduction in commercial construction activity. McGrath RentCorp also received a $180 million termination fee following the discontinuation of an acquisition by WillScot (NASDAQ:WSC).
Looking ahead, the company anticipates continued softness in the Portable Storage and TRS divisions but remains optimistic about growth initiatives in the Modular segment. The company also plans to enhance customer service and expand its geographic footprint. Full-year total revenues are projected to range between $910 million and $920 million, with adjusted EBITDA expected to be between $345 million and $351 million. These are some of the recent developments for McGrath RentCorp.
InvestingPro Insights
While Kristina Van Trease's recent stock sale might raise eyebrows, it's important to consider McGrath RentCorp's (NASDAQ:MGRC) broader financial picture. According to InvestingPro data, the company boasts a market capitalization of $2.9 billion and has demonstrated strong financial performance with a revenue of $888.78 million in the last twelve months as of Q3 2023, representing a 12.06% growth.
McGrath RentCorp's financial health is further underscored by its impressive gross profit margins, which stand at 48.47% for the same period. This aligns with one of the InvestingPro Tips highlighting the company's "impressive gross profit margins." Additionally, the company's P/E ratio of 12.87 suggests that it may be undervalued relative to its earnings potential.
Another noteworthy InvestingPro Tip is that McGrath RentCorp "has raised its dividend for 27 consecutive years," indicating a strong commitment to shareholder returns. This is particularly relevant given the recent insider sale, as it demonstrates the company's long-term financial stability and shareholder-friendly policies.
For investors seeking a 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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