Disclosed on May 6, Joseph Hanna, President and CEO at McGrath RentCorp MGRC, executed a substantial insider sell as per the latest SEC filing.
What Happened: Hanna’s recent move involves selling 14,250 shares of McGrath RentCorp. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $1,550,888.
Tracking the Tuesday’s morning session, McGrath RentCorp shares are trading at $108.09, showing a down of 0.38%.
All You Need to Know About McGrath RentCorp
McGrath RentCorp is a rental company. It is comprised of four reportable business segments namely Modular building segment (Mobile Modular); Portable storage container segment (Portable Storage); Electronic test equipment segment (TRS-RenTelco); and its classroom manufacturing business selling modular buildings used primarily as classrooms in California (Enviroplex). The company generates its revenues majorily from the rental of its equipment on operating leases with sales of equipment occurring in the normal course of business.
Financial Insights: McGrath RentCorp
Positive Revenue Trend: Examining McGrath RentCorp’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.04% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Profitability Metrics: Unlocking Value
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Gross Margin: The company sets a benchmark with a high gross margin of 49.35%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): McGrath RentCorp’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.15.
Debt Management: McGrath RentCorp’s debt-to-equity ratio is below the industry average at 0.49, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics: A Closer Look
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 11.24, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.9, McGrath RentCorp’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 6.86, McGrath RentCorp’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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The Importance of Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Navigating the World of Insider Transaction Codes
When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of McGrath RentCorp’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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