Herc Holdings Inc. (NYSE:HRI) Stock Has Consensus Target Price of $201.57

Key Points

• Analysts maintain a moderately bullish view: Herc Holdings has a consensus “Moderate Buy” rating, with six buys, one strong buy and two holds. The average 12-month price target is $201.57, above the reported $165.24 share price.
• Third-quarter results beat expectations: Adjusted EPS was $3.91 versus the $2.92 consensus, while revenue rose 4.6% year over year to approximately $1.36 billion. Equipment rental revenue grew 12% despite less than 2% fleet growth, indicating improved utilization and operating efficiency.
• Risks remain despite the favorable outlook: Herc’s debt-to-equity ratio is elevated at 4.08, its net margin is relatively low at 2.50%, and the stock’s rise toward its 52-week high could invite profit-taking if rental demand or pricing weakens.

Herc Holdings Inc. (NYSE:HRI - Get Free Report) has received a consensus rating of "Moderate Buy" from the nine brokerages that are covering the firm, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold recommendation, six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $201.57.

A number of analysts have recently weighed in on HRI shares. Citigroup raised their target price on Herc from $150.00 to $180.00 and gave the company a "buy" rating in a research note on Wednesday, October 28th. Barclays increased their price target on Herc from $175.00 to $200.00 and gave the stock an "overweight" rating in a report on Wednesday. Wells Fargo & Company increased their target price on shares of Herc from $176.00 to $200.00 and gave the stock an "overweight" rating in a research report on Wednesday. JPMorgan Chase & Co. increased their target price on shares of Herc from $165.00 to $230.00 and gave the stock an "overweight" rating in a report on Wednesday, October 28th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Herc in a research report on Monday, October 26th.

Herc News Roundup

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Strong earnings beat: Herc reported third-quarter adjusted earnings of $3.91 per share, well above the $2.92 analyst consensus. Revenue reached approximately $1.36 billion, up 4.6% year over year and slightly ahead of expectations. Why Herc Holdings Stock Surged This Week
• Positive Sentiment: Improved rental economics: Equipment rental revenue increased 12% despite fleet growth of less than 2%, indicating better utilization and operating efficiency. These results helped drive the stock’s recent gains. HRI Q3 Deep Dive
• Positive Sentiment: Favorable growth outlook: Expansion in specialty equipment and demand tied to large infrastructure and industrial projects are improving management’s outlook and could support future revenue and margins. HRI Q3 Deep Dive
• Positive Sentiment: Analyst support: Analysts at Robert W. Baird, JPMorgan, BNP Paribas Exane and Citigroup issued positive forecasts or indicated potential for further appreciation, reinforcing bullish sentiment. Baird Forecast
• Neutral Sentiment: Momentum remains strong: Zacks highlighted HRI as a strong momentum stock, while reports noted that it has outperformed many transportation-related peers. Momentum-based interest may continue attracting investors. Why Herc Is a Strong Momentum Stock
• Negative Sentiment: Profit-taking and financial risk: After rising substantially toward its 52-week high, HRI may face short-term selling pressure. Its elevated debt-to-equity ratio and relatively modest net margin remain risks, particularly if equipment demand or rental pricing weakens.

Herc Trading Down 0.3%

NYSE:HRI opened at $165.24 on Monday. The company has a debt-to-equity ratio of 4.08, a quick ratio of 1.08 and a current ratio of 1.08. The stock has a market cap of $5.53 billion, a P/E ratio of 45.02 and a beta of 2.04. Herc has a 1 year low of $88.45 and a 1 year high of $188.35. The stock has a 50-day simple moving average of $139.30 and a 200-day simple moving average of $139.39.

Herc (NYSE:HRI - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The transportation company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.92 by $0.99. Herc had a net margin of 2.50% and a return on equity of 13.21%. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter in the prior year, the firm posted $2.22 earnings per share. The company's quarterly revenue was up 4.6% compared to the same quarter last year. As a group, analysts anticipate that Herc will post 7.87 earnings per share for the current fiscal year.

Herc Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd were paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Wednesday, September 2nd. Herc's payout ratio is 76.29%.

Hedge Funds Weigh In On Herc

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp acquired a new stake in Herc in the 2nd quarter valued at $86,054,000. Cooper Creek Partners Management LLC acquired a new stake in Herc during the first quarter valued at $21,866,000. Dimensional Fund Advisors LP boosted its position in Herc by 17.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,164,022 shares of the transportation company's stock worth $115,872,000 after purchasing an additional 170,189 shares during the period. Penn Capital Management Company LLC bought a new stake in shares of Herc in the second quarter valued at about $21,070,000. Finally, Bank of America Corp DE boosted its stake in shares of Herc by 147.8% in the 1st quarter. Bank of America Corp DE now owns 235,320 shares of the transportation company's stock valued at $23,426,000 after purchasing an additional 140,355 shares in the last quarter. Institutional investors and hedge funds own 93.11% of the company's stock.

About Herc

Herc Holdings Inc, operating primarily through the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, commercial and government customers. The company provides access to equipment and related services intended to help customers complete projects without purchasing and maintaining their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power generation and climate-control equipment, pumps, and general tools.

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