Paradice Investment Management Acquires Stake in McGrath RentCorp
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 45 minutes ago
0mins
Source: Fool
- New Investment Disclosure: Paradice Investment Management disclosed a new position of 158,670 shares in McGrath RentCorp (MGRC) on May 14, 2026, with an estimated trade value of $17.64 million, indicating confidence in the company's prospects.
- Ownership Proportion Analysis: Following this acquisition, MGRC now accounts for approximately 3% of Paradice's reportable U.S. equity AUM, highlighting its significance within the investment portfolio.
- Strong Financial Performance: McGrath RentCorp reported a 5% year-over-year increase in rental revenue to $162.2 million in Q1, and despite a 4% decline in stock price, the company has maintained a 35-year streak of dividend growth, demonstrating stable cash flow and profitability.
- Optimistic Future Outlook: The company reaffirmed its full-year revenue guidance of up to $995 million and adjusted EBITDA of up to $378 million, suggesting that if rental demand remains strong, the current valuation may be more attractive than recent stock performance indicates.
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Analyst Views on MGRC
Wall Street analysts forecast MGRC stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 111.370
Low
143.00
Averages
143.00
High
143.00
Current: 111.370
Low
143.00
Averages
143.00
High
143.00
About MGRC
McGrath RentCorp is a business-to-business rental company in North America. The Company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco and Enviroplex. Mobile Modular segment provides modular buildings in the United States. It provides prefabricated customizable modular buildings, mobile office trailers, portable classrooms, portable sales office buildings, prefab restrooms and more for rent, lease and sale. Portable Storage segment’s rental inventory is comprised of steel containers, which are used to provide a temporary storage solution that is delivered to the customer’s location. TRS-RenTelco segment rents and sells general purpose and communications test equipment. TRS-RenTelco segment’s general purpose test equipment rental inventory includes oscilloscopes, amplifiers, analyzers (spectrum, network and logic), signal source and power source test equipment. Enviroplex segment manufactures modular buildings used primarily as classrooms in California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Paradice Investment Management Acquires Stake in McGrath RentCorp
- New Investment Disclosure: Paradice Investment Management disclosed a new position of 158,670 shares in McGrath RentCorp (MGRC) on May 14, 2026, with an estimated trade value of $17.64 million, indicating confidence in the company's prospects.
- Ownership Proportion Analysis: Following this acquisition, MGRC now accounts for approximately 3% of Paradice's reportable U.S. equity AUM, highlighting its significance within the investment portfolio.
- Strong Financial Performance: McGrath RentCorp reported a 5% year-over-year increase in rental revenue to $162.2 million in Q1, and despite a 4% decline in stock price, the company has maintained a 35-year streak of dividend growth, demonstrating stable cash flow and profitability.
- Optimistic Future Outlook: The company reaffirmed its full-year revenue guidance of up to $995 million and adjusted EBITDA of up to $378 million, suggesting that if rental demand remains strong, the current valuation may be more attractive than recent stock performance indicates.
See More
Paradice Investment Management Takes $17.64 Million Stake in McGrath RentCorp
- New Investment Disclosure: Paradice Investment Management disclosed a new position in McGrath RentCorp (NASDAQ:MGRC) on May 14, 2026, acquiring 158,670 shares valued at approximately $17.64 million, indicating strong confidence in the company.
- Market Performance Analysis: Despite MGRC shares declining 4% over the past year, the company's ongoing expansion in the rental business and its impressive 35-year dividend growth streak highlight its stability and attractiveness in the industry.
- Financial Health Status: In the first quarter, MGRC reported a 2% increase in total revenue to $198.5 million and a 5% rise in rental revenue to $162.2 million, demonstrating resilience and growth potential amid economic uncertainty.
- Future Outlook: MGRC reaffirmed its full-year revenue guidance of up to $995 million and adjusted EBITDA of up to $378 million, suggesting that if rental demand remains strong, the current valuation may appear more attractive than recent share performance indicates.
See More
Anchor Capital Increases Stake in McGrath RentCorp by 40,352 Shares
- Stake Increase: In Q1 2026, Anchor Capital increased its stake in McGrath RentCorp by 40,352 shares, with an estimated trade value of $4.49 million, indicating confidence in the company's long-term investment strategy.
- Market Value Growth: Following the increase, McGrath RentCorp's quarter-end value rose by $5.23 million, reflecting the dual impact of market pricing shifts and trades, further solidifying Anchor Capital's position in its portfolio.
- Stable Revenue: McGrath RentCorp's total revenue rose 2% year-over-year to $198.5 million, with rental operations revenue climbing 5%, showcasing strong performance amid booming infrastructure and data center spending.
- Shareholder Returns: McGrath has increased its annual dividend for 35 consecutive years, with the latest quarterly dividend at $0.495 per share, demonstrating the company's ongoing commitment to stable returns and attracting long-term investor interest.
See More
Anchor Capital Increases Stake in McGrath RentCorp
- Stake Increase: Anchor Capital Management increased its stake in McGrath RentCorp by 40,352 shares in Q1 2026, with an estimated transaction value of $4.49 million, indicating confidence in the company's stable revenue model and growth potential.
- Quarterly Performance: McGrath RentCorp reported a 2% year-over-year revenue increase to $198.5 million in the latest quarter, with rental operations revenue rising 5%, showcasing strong performance amid growing demand for infrastructure and data centers, despite a 13% decline in overall sales revenue.
- Shareholder Returns: The company has raised its annual dividend for 35 consecutive years, with a recent quarterly payout of $0.495 per share, reflecting a strong commitment to shareholder returns and stable cash flow, which enhances investor confidence.
- Market Positioning: Although McGrath RentCorp's stock price has remained flat over the past year, its diversified rental model and reliance on infrastructure spending provide a buffer against economic downturns, making it appealing to long-term investors.
See More
Anchor Capital Acquires New Position in Knowles
- New Investment Disclosure: Anchor Capital disclosed a new position in Knowles (NYSE:KN) by acquiring 189,817 shares in Q1 2026, with an estimated transaction value of $4.80 million, indicating confidence in the company's future growth potential.
- Position Value Increase: By quarter-end, the value of Knowles' position rose to $4.87 million, reflecting positive impacts from market price changes and trading activity, suggesting investor optimism regarding its business outlook.
- Strong Performance: Knowles reported a 16% year-over-year revenue increase to $153.1 million in the latest quarter, while non-GAAP diluted EPS surged 50% to $0.27, demonstrating robust demand across industrial, medtech, and defense markets.
- Outstanding Market Performance: Knowles' stock price surged 110% over the past year, significantly outperforming the S&P 500's 25% increase, highlighting its competitive edge and investment appeal in rapidly growing markets.
See More
McGrath RentCorp Q1 2026 Earnings Call Insights
- Revenue Growth: McGrath RentCorp reported a 2% year-over-year increase in total revenues to $199 million in Q1 2026, despite a 1% decline in adjusted EBITDA to $74 million, demonstrating resilience in challenging market conditions.
- Rental Revenue Performance: Mobile Modular's rental revenues grew by 4%, while TRS saw a significant 13% increase, indicating strong performance in commercial market segments, particularly in supporting data center construction projects.
- Cost Pressures: Inventory center costs rose by $3.2 million, compressing rental margins from 60% last year to 56%, reflecting challenges in managing high operating costs that may impact future profitability.
- Future Outlook: The company maintains its full-year revenue guidance between $945 million and $995 million, although geopolitical developments in the Middle East and rising energy prices may introduce uncertainties affecting project timelines, with management remaining cautiously optimistic about market prospects.
See More
Paradice Investment Management Acquires Stake in McGrath RentCorp
- New Investment Disclosure: Paradice Investment Management disclosed a new position of 158,670 shares in McGrath RentCorp (MGRC) on May 14, 2026, with an estimated trade value of $17.64 million, indicating confidence in the company's prospects.
- Ownership Proportion Analysis: Following this acquisition, MGRC now accounts for approximately 3% of Paradice's reportable U.S. equity AUM, highlighting its significance within the investment portfolio.
- Strong Financial Performance: McGrath RentCorp reported a 5% year-over-year increase in rental revenue to $162.2 million in Q1, and despite a 4% decline in stock price, the company has maintained a 35-year streak of dividend growth, demonstrating stable cash flow and profitability.
- Optimistic Future Outlook: The company reaffirmed its full-year revenue guidance of up to $995 million and adjusted EBITDA of up to $378 million, suggesting that if rental demand remains strong, the current valuation may be more attractive than recent stock performance indicates.
See More
Paradice Investment Management Takes $17.64 Million Stake in McGrath RentCorp
- New Investment Disclosure: Paradice Investment Management disclosed a new position in McGrath RentCorp (NASDAQ:MGRC) on May 14, 2026, acquiring 158,670 shares valued at approximately $17.64 million, indicating strong confidence in the company.
- Market Performance Analysis: Despite MGRC shares declining 4% over the past year, the company's ongoing expansion in the rental business and its impressive 35-year dividend growth streak highlight its stability and attractiveness in the industry.
- Financial Health Status: In the first quarter, MGRC reported a 2% increase in total revenue to $198.5 million and a 5% rise in rental revenue to $162.2 million, demonstrating resilience and growth potential amid economic uncertainty.
- Future Outlook: MGRC reaffirmed its full-year revenue guidance of up to $995 million and adjusted EBITDA of up to $378 million, suggesting that if rental demand remains strong, the current valuation may appear more attractive than recent share performance indicates.
See More
Anchor Capital Increases Stake in McGrath RentCorp by 40,352 Shares
- Stake Increase: In Q1 2026, Anchor Capital increased its stake in McGrath RentCorp by 40,352 shares, with an estimated trade value of $4.49 million, indicating confidence in the company's long-term investment strategy.
- Market Value Growth: Following the increase, McGrath RentCorp's quarter-end value rose by $5.23 million, reflecting the dual impact of market pricing shifts and trades, further solidifying Anchor Capital's position in its portfolio.
- Stable Revenue: McGrath RentCorp's total revenue rose 2% year-over-year to $198.5 million, with rental operations revenue climbing 5%, showcasing strong performance amid booming infrastructure and data center spending.
- Shareholder Returns: McGrath has increased its annual dividend for 35 consecutive years, with the latest quarterly dividend at $0.495 per share, demonstrating the company's ongoing commitment to stable returns and attracting long-term investor interest.
See More
Anchor Capital Increases Stake in McGrath RentCorp
- Stake Increase: Anchor Capital Management increased its stake in McGrath RentCorp by 40,352 shares in Q1 2026, with an estimated transaction value of $4.49 million, indicating confidence in the company's stable revenue model and growth potential.
- Quarterly Performance: McGrath RentCorp reported a 2% year-over-year revenue increase to $198.5 million in the latest quarter, with rental operations revenue rising 5%, showcasing strong performance amid growing demand for infrastructure and data centers, despite a 13% decline in overall sales revenue.
- Shareholder Returns: The company has raised its annual dividend for 35 consecutive years, with a recent quarterly payout of $0.495 per share, reflecting a strong commitment to shareholder returns and stable cash flow, which enhances investor confidence.
- Market Positioning: Although McGrath RentCorp's stock price has remained flat over the past year, its diversified rental model and reliance on infrastructure spending provide a buffer against economic downturns, making it appealing to long-term investors.
See More
Anchor Capital Acquires New Position in Knowles
- New Investment Disclosure: Anchor Capital disclosed a new position in Knowles (NYSE:KN) by acquiring 189,817 shares in Q1 2026, with an estimated transaction value of $4.80 million, indicating confidence in the company's future growth potential.
- Position Value Increase: By quarter-end, the value of Knowles' position rose to $4.87 million, reflecting positive impacts from market price changes and trading activity, suggesting investor optimism regarding its business outlook.
- Strong Performance: Knowles reported a 16% year-over-year revenue increase to $153.1 million in the latest quarter, while non-GAAP diluted EPS surged 50% to $0.27, demonstrating robust demand across industrial, medtech, and defense markets.
- Outstanding Market Performance: Knowles' stock price surged 110% over the past year, significantly outperforming the S&P 500's 25% increase, highlighting its competitive edge and investment appeal in rapidly growing markets.
See More
McGrath RentCorp Q1 2026 Earnings Call Insights
- Revenue Growth: McGrath RentCorp reported a 2% year-over-year increase in total revenues to $199 million in Q1 2026, despite a 1% decline in adjusted EBITDA to $74 million, demonstrating resilience in challenging market conditions.
- Rental Revenue Performance: Mobile Modular's rental revenues grew by 4%, while TRS saw a significant 13% increase, indicating strong performance in commercial market segments, particularly in supporting data center construction projects.
- Cost Pressures: Inventory center costs rose by $3.2 million, compressing rental margins from 60% last year to 56%, reflecting challenges in managing high operating costs that may impact future profitability.
- Future Outlook: The company maintains its full-year revenue guidance between $945 million and $995 million, although geopolitical developments in the Middle East and rising energy prices may introduce uncertainties affecting project timelines, with management remaining cautiously optimistic about market prospects.
See More
