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McGrath RentCorp (MGRC) Stock Analysis

SellModerate Confidence

Industrials · Rental & Leasing Services

Sell if holding. Momentum 3.5/10 is below the 5.0 floor at $107.75 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Consecutive earnings misses (2).

McGrath RentCorp is a diversified B2B rental company with three segments: Mobile Modular (relocatable modular buildings), Portable Storage (containers), and TRS-RenTelco (electronic test equipment), plus Enviroplex (California classroom manufacturer). Revenue primarily comes... Read more

$107.75+17.4% A.UpsideScore 6.0/10#5 of 17 Rental & Leasing Services
Stop $101.74Target $125.80(analyst − 13%)A.R:R 2.0:1
Analyst target$144.60+34.2%5 analysts
$125.80our TP
$107.75price
$144.60mean
$150

Sell if holding. Momentum 3.5/10 is below the 5.0 floor at $107.75 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Consecutive earnings misses (2). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 6.0/10, moderate confidence.

Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.

Val6.8Qual6.8Grw5.7Mom3.5Sent6.7Ins5.0Peer5.0Tech7.9Risk6.66.0OVERALL

Thesis

Rewards
No bull case signals
Risks
Consecutive earnings misses (2)
Negative momentum
Below 200-day MA

Key Metrics

P/E (TTM)18.7
P/E (Fwd)16.9
Mkt Cap$2.9B
EV/EBITDA13.1
Profit Mgn16.6%
ROE13.2%
Rev Growth5.3%
Beta0.48
Dividend1.64%
Rating analysts9

Quality Signals

Piotroski F9/9

Options Flow

IV70%elevated

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicCalifornia
    10-K Item 1A: 'A significant portion of our business is conducted in California which is one of the most highly regulated and litigious states in the country'

Material Events(8-K, last 90d)

  • 2026-02-05Item 5.02MEDIUM
    CEO Joseph F. Hanna announced retirement effective April 3, 2026. Philip B. Hawkins (current COO) appointed President and CEO and Board member effective same date. Base salary 700,000 with 100% target bonus. Clean handoff.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.5
Volume
1.3
Ma Position
1.5
Rsi
4.5
Obv
9.9
Volume accumulation (rising OBV)Below 200-MA, MA slope flat
GatesMomentum 3.5<4.5Death cross (50MA < 200MA)A.R:R 2.0 ≥ 1.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
41 · Neutral
↓ 20D MA↓ 50D MA↓ 200D MADEATH CROSSSupport $104.89Resistance $120.39

Price Targets

$102
$126
A.Upside+16.8%
A.R:R2.0:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! NEWS_MOD=-1: HOLD_IF_HOLDING → SELL_IF_HOLDING
! Momentum score 3.5/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-04-29 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is MGRC stock a buy right now?

Sell if holding. Momentum 3.5/10 is below the 5.0 floor at $107.75 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Negative momentum; Consecutive earnings misses (2). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $101.74. Score 6.0/10, moderate confidence.

What is the MGRC stock price target?

Take-profit target: $125.80 (+17.4% upside). Prior stop was $101.74. Stop-loss: $101.74.

What are the risks of investing in MGRC?

Consecutive earnings misses (2); Negative momentum; Below 200-day MA.

Is MGRC overvalued or undervalued?

McGrath RentCorp trades at a P/E of 18.7 (forward 16.9). TrendMatrix value score: 6.8/10. Verdict: Sell.

What do analysts say about MGRC?

9 analysts cover MGRC with a consensus score of 4.2/5. Average price target: $145.

What does McGrath RentCorp do?McGrath RentCorp is a diversified B2B rental company with three segments: Mobile Modular (relocatable modular...

McGrath RentCorp is a diversified B2B rental company with three segments: Mobile Modular (relocatable modular buildings), Portable Storage (containers), and TRS-RenTelco (electronic test equipment), plus Enviroplex (California classroom manufacturer). Revenue primarily comes from equipment rentals; modulars recover original investment in ~4 years, containers and electronics in ~3 years.

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