Paradice Investment Management disclosed a new position in McGrath RentCorp (NASDAQ:MGRC) on May 14, 2026, with an estimated $17.64 million trade based on quarterly average pricing.
What happened
Paradice Investment Management initiated a new stake of 158,670 shares in McGrath RentCorp (NASDAQ:MGRC), according to a May 14, 2026, SEC filing. The estimated value of the trade was $17.64 million, calculated using the average closing price for the first quarter of 2026. As of quarter-end, the MGRC position was valued at $17.50 million, reflecting the impact of market movements over the period.
What else to know
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This is a new position for Paradice, now accounting for roughly 3% of its reportable U.S. equity AUM after the trade.
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Top five fund holdings after the filing:
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NYSE: GMED: $42.33 million (8.0% of AUM)
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NYSE: GNRC: $40.68 million (7.6% of AUM)
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NASDAQ: TNDM: $39.15 million (7.4% of AUM)
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NYSE: LEA: $38.28 million (7.2% of AUM)
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NYSE: FLS: $37.34 million (7.0% of AUM)
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As of Friday, MGRC shares were priced at $108.99, down 4% over the past year, and well underperforming the S&P 500, which is instead up about 28%.
Company Overview
|
Metric |
Value |
|---|---|
|
Revenue (TTM) |
$947.36 million |
|
Net Income (TTM) |
$155.13 million |
|
Dividend Yield |
1.8% |
|
Price (as of Friday) |
$108.99 |
Company Snapshot
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McGrath RentCorp offers relocatable modular buildings, portable storage containers, electronic test equipment, and liquid/solid containment tanks across four main segments: Mobile Modular, TRS-RenTelco, Adler Tanks, and Enviroplex.
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The firm generates revenue primarily through rental and sales of modular buildings, storage solutions, and specialized equipment, targeting both recurring rental income and equipment sales to institutional and industrial clients.
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It serves diverse end-markets including education, construction, industrial, aerospace, defense, communications, and public sector entities in the United States and internationally.
McGrath RentCorp is a leading business-to-business rental solutions provider with a diversified portfolio spanning modular buildings, electronic test equipment, and liquid containment systems. The company operates through four segments and generates revenue from both recurring rental income and equipment sales. The company serves a broad range of customers and offers specialized rental solutions in the rental and leasing services industry.
What this transaction means for investors
McGrath shares have trailed the broader market over the past year despite the company continuing to expand its rental business and maintain one of the longest dividend growth streaks in its sector. The company has now increased its dividend for 35 straight years, and earlier this month, it secured a new $725 million credit facility that extends its financial flexibility through 2031.
First-quarter results, meanwhile, showed a business still moving in the right direction. Rental revenue rose 5% to $162.2 million, total revenue increased 2% to $198.5 million, and adjusted EBITDA remained relatively stable at $74.1 million. Management highlighted growth across all operating segments, with particularly strong demand at TRS-RenTelco, where rental revenue jumped 13% thanks in part to projects tied to new data center construction.
McGrath also reaffirmed its full-year outlook of up to $995 million in revenue and as much as $378 million in adjusted EBITDA despite economic uncertainty. If rental demand holds up, today’s valuation may look more attractive than recent share performance suggests.