Philip B. Hawkins (NASDAQ:HWKN), Senior Vice President of the Mobile Modular Division at McGrath RentCorp (NASDAQ:MGRC), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Hawkins disposed of a total of 4,283 shares of common stock on October 30. The shares were sold at prices ranging from $115.14 to $117.30, generating a total value of approximately $497,980.
The transactions were conducted in multiple trades, with the weighted average prices for the sales recorded at $115.8098, $116.4762, and $117.2272. Following these transactions, Hawkins no longer holds any shares in McGrath RentCorp directly.
These transactions were disclosed in a Form 4 filing, which was signed by David Whitney, acting as Power of Attorney for Philip B. Hawkins.
In other recent news, McGrath RentCorp reported a 10% growth in total revenues, reaching $267 million in Q3 2024. The company's adjusted EBITDA also saw a 13% increase to $104 million. This financial growth was accompanied by the termination of an acquisition by WillScot (NASDAQ:WSC), resulting in a $180 million termination fee for McGrath RentCorp. The company's Modular business showed considerable strength, with rental and sales revenues up 9% and 14% respectively.
However, not all divisions experienced growth. The Portable Storage and TRS divisions faced declines due to reduced commercial construction activity. Looking ahead, McGrath RentCorp anticipates these divisions will continue to experience soft demand into 2025, but remains optimistic about growth initiatives in the Modular segment.
In terms of future plans, the company is considering potential acquisitions to expand its footprint and is set to resume investments in real estate and IT initiatives. These recent developments indicate McGrath RentCorp's commitment to growth, despite challenges in specific sectors.
InvestingPro Insights
While Philip B. Hawkins has sold his entire direct stake in McGrath RentCorp (NASDAQ:MGRC), investors may find reassurance in the company's solid financial position and consistent dividend history. According to InvestingPro data, McGrath RentCorp boasts a market capitalization of $2.9 billion and has demonstrated impressive revenue growth of 12.06% over the last twelve months as of Q3 2024.
An InvestingPro Tip highlights that McGrath RentCorp has raised its dividend for 27 consecutive years, showcasing a strong commitment to shareholder returns. This is further supported by the company's dividend yield of 1.62% and a dividend growth rate of 2.15% over the last twelve months.
The company's financial health appears robust, with a gross profit margin of 48.47% and an operating income margin of 26.52% for the same period. These figures suggest efficient operations and potential for sustained profitability.
It's worth noting that McGrath RentCorp is trading at a P/E ratio of 12.87, which could indicate an attractive valuation relative to its earnings. This aligns with another InvestingPro Tip stating that the company is trading at a low P/E ratio relative to near-term earnings growth.
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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