McGrath RentCorp SVP Sold $88K In Company Stock

Revealing a significant insider sell on December 16, Gilda Malek, SVP at McGrath RentCorp (NASDAQ:MGRC), as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Malek sold 829 shares of McGrath RentCorp. The total transaction amounted to $88,942.

As of Wednesday morning, McGrath RentCorp shares are down by 0.0%, currently priced at $107.54.

Delving into McGrath RentCorp's Background

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 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.

McGrath RentCorp: Financial Performance Dissected

Revenue Challenges: McGrath RentCorp's revenue growth over 3 months faced difficulties. As of 30 September, 2025, the company experienced a decline of approximately -3.87%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 46.5%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): McGrath RentCorp's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.72.

Debt Management: With a below-average debt-to-equity ratio of 0.46, McGrath RentCorp adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 18.24, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.84 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 9.48, McGrath RentCorp presents an attractive value opportunity.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

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.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Transaction Codes Worth Your Attention

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies 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.