Zacks Investment Research cut shares of Hertz Global (NYSE:HTZ) from a buy rating to a hold rating in a report released on Monday.
According to Zacks, “Shares of Hertz Global have outperfomed the industry it belongs to on a year-to-date basis. The company is being aided by strong performance of the U.S. Rental Car segment. Revenues at the division grew 8.1% in 2018. The company's measures to revive its fortunes through the turnaround plan is also encouraging. Evidently, the company's turnaround plan has helped generate 8% revenue growth, increased volumes and prices in 2018. The momentum is anticipated to continue into 2019. However, the company's heavy investments on its turnaround plans seem to partly affect the bottom line. Moreover, pricing pressure remains a major headwind due to low used car prices. Also, competition from players like Uber as well as other car-sharing and ride-hailing services is hurting the company’s top-line growth prospects. Additionally, the company is highly leveraged.”
Several other brokerages also recently weighed in on HTZ. Northcoast Research upgraded shares of Hertz Global from a neutral rating to a buy rating in a research report on Monday, March 4th. Deutsche Bank lifted their price objective on shares of Hertz Global from $18.00 to $21.00 and gave the company a hold rating in a research report on Wednesday, February 27th. ValuEngine upgraded shares of Hertz Global from a hold rating to a buy rating in a research report on Tuesday, March 5th. Barclays upgraded shares of Hertz Global from an underweight rating to an equal weight rating and lifted their price objective for the company from $14.00 to $18.00 in a research report on Friday, March 1st. Finally, Morgan Stanley set a $15.00 price objective on shares of Hertz Global and gave the company a sell rating in a research report on Thursday, December 20th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $17.33.
Hertz Global (NYSE:HTZ) last issued its quarterly earnings data on Monday, February 25th. The transportation company reported ($0.55) earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.81) by $0.26. The firm had revenue of $2.29 billion for the quarter, compared to the consensus estimate of $2.15 billion. Hertz Global had a negative net margin of 2.37% and a negative return on equity of 1.14%. Hertz Global’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same period last year, the firm posted ($0.77) EPS. On average, research analysts expect that Hertz Global will post 0.64 earnings per share for the current fiscal year.
In other Hertz Global news, major shareholder Carl C. Icahn sold 5,000,000 shares of the firm’s stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $19.45, for a total transaction of $97,250,000.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.56% of the stock is currently owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in HTZ. Norges Bank acquired a new position in Hertz Global during the 4th quarter valued at about $11,049,000. Peregrine Capital Management LLC increased its stake in Hertz Global by 89.0% during the 4th quarter. Peregrine Capital Management LLC now owns 618,950 shares of the transportation company’s stock valued at $8,449,000 after buying an additional 291,512 shares during the period. Royce & Associates LP increased its stake in Hertz Global by 56.7% during the 4th quarter. Royce & Associates LP now owns 736,400 shares of the transportation company’s stock valued at $10,052,000 after buying an additional 266,500 shares during the period. Bank of America Corp DE increased its stake in Hertz Global by 108.1% during the 4th quarter. Bank of America Corp DE now owns 337,388 shares of the transportation company’s stock valued at $4,605,000 after buying an additional 175,225 shares during the period. Finally, Squarepoint Ops LLC increased its stake in Hertz Global by 783.9% during the 4th quarter. Squarepoint Ops LLC now owns 185,753 shares of the transportation company’s stock valued at $2,536,000 after buying an additional 164,739 shares during the period.
About Hertz Global
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc, operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 9,700 corporate and franchisee locations throughout North America, Europe, The Caribbean, Latin America, Africa, the Middle East, Asia, Australia, and New Zealand.
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