This $4 Million Rental Stock Buy Signals Confidence in Data Center Demand
Key Points
Anchor Capital acquired 40,352 additional shares of McGrath RentCorp; the estimated transaction value was $4.49 million based on quarterly average pricing.
The quarter-end position value rose by $5.23 million, reflecting both trading activity and share price changes.
The trade represented a 4.84% change relative to 13F reportable assets under management.
The post-trade holdings stood at 185,211 shares valued at $20.43 million.
McGrath RentCorp now accounts for 22.03% of the fund’s 13F AUM, making it one of the fund’s largest holdings.
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Anchor Capital Management Company increased its stake in McGrath RentCorp (NASDAQ:MGRC) by 40,352 shares in the first quarter, an estimated $4.49 million trade based on quarterly average pricing, according to its May 15, 2026, SEC filing.
What happened
According to an SEC filing dated May 15, 2026, Anchor Capital Management Company increased its position in McGrath RentCorp by 40,352 shares during the first quarter. The estimated transaction value was approximately $4.49 million, calculated using the period’s average closing price. The quarter-end value of the fund’s position in McGrath RentCorp increased by $5.23 million, a figure that includes both the impact of trades and market pricing shifts.
What else to know
- ANCHOR Capital’s McGrath RentCorp stake represents 22.03% of 13F AUM following the buy
- Top holdings after the filing:
- NASDAQ: HLMN: $21.10 million (22.8% of AUM)
- NASDAQ: MGRC: $20.43 million (22.0% of AUM)
- NASDAQ: LIND: $16.99 million (18.3% of AUM)
- NYSE: SXI: $14.33 million (15.5% of AUM)
- NASDAQ: VITL: $8.77 million (9.5% of AUM)
- As of May 14, 2026, McGrath RentCorp shares were priced at $115.56, roughly flat over the past year and underperforming the S&P 500, which is instead up about 25%.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $947.36 million |
| Net Income (TTM) | $155.13 million |
| Dividend Yield | 1.7% |
| Price (as of market close 2026-05-14) | $115.56 |
Company Snapshot
- McGrath RentCorp offers rental and sales of modular buildings, portable storage containers, electronic test equipment, and liquid and solid containment tanks across four business segments.
- The firm generates revenue through equipment rental, sales of modular products, and related services to business and institutional clients.
- It serves a diversified customer base, including education, construction, industrial, communications, and public sector organizations in the United States and internationally.
McGrath RentCorp is a leading provider of business-to-business rental solutions, operating at scale with nearly $1 billion in annual revenue. The company leverages a diversified portfolio of modular buildings, test equipment, and containment solutions to address the needs of multiple industries. Its strategy centers on recurring rental income, strong customer relationships, and operational expertise, positioning it competitively in the rental and leasing services market.
What this transaction means for investors
Rather than chasing a high-growth story, Anchor appears to be leaning further into a company with recurring revenue, a long dividend track record, and exposure to booming infrastructure and data center spending. This type of position says a lot in a concentrated portfolio like this one.
And McGrath’s latest quarter reinforced that thesis. Total revenue rose 2% to $198.5 million, while rental operations revenue climbed 5% to $162.2 million. The standout business was TRS-RenTelco, where rental revenue jumped 13% as demand tied to new data center buildouts accelerated. Meanwhile, adjusted EBITDA was relatively stable at $74.1 million, even as sales revenue declined 13% and management flagged softer commercial construction activity.
The company also continues to reward shareholders. McGrath has now increased its annual dividend for 35 consecutive years and paid a quarterly dividend of $0.495 per share.
For long-term investors, the appeal here is consistency. McGrath may not be flashy, but its diversified rental model, exposure to infrastructure spending, and recurring revenue base could help cushion the business if economic conditions weaken later this year.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hillman Solutions. The Motley Fool recommends Lindblad Expeditions, McGrath RentCorp, and Vital Farms. The Motley Fool has a disclosure policy.
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