Bank of New York Mellon Corp Takes $86.05 Million Position in Herc Holdings Inc. $HRI

Key Points

• Bank of New York Mellon acquired 600,352 Herc Holdings shares valued at approximately $86.05 million, representing about 1.8% of the company. Institutional investors collectively own 93.11% of Herc.
• Herc reported quarterly revenue of $1.20 billion, up 20.2% year over year, and EPS of $1.43, beating analyst expectations of $0.76. The stock recently traded at $156.01, down 1.3%.
• Herc declared a quarterly dividend of $0.70 per share, or $2.80 annualized, yielding about 1.8%. Analysts maintain a “Moderate Buy” consensus with an average price target of $183.

Bank of New York Mellon Corp purchased a new stake in Herc Holdings Inc. (NYSE:HRI - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 600,352 shares of the transportation company's stock, valued at approximately $86,054,000. Bank of New York Mellon Corp owned about 1.80% of Herc at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the business. Invesco Ltd. increased its stake in Herc by 11.2% in the third quarter. Invesco Ltd. now owns 4,123,437 shares of the transportation company's stock valued at $481,040,000 after purchasing an additional 413,719 shares during the period. Norges Bank acquired a new stake in shares of Herc during the fourth quarter worth about $287,269,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Herc by 86,823.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,335,138 shares of the transportation company's stock worth $198,108,000 after buying an additional 1,333,602 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of 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 buying an additional 170,189 shares during the last quarter. Finally, First Trust Advisors LP increased its position in Herc by 13.4% in the 1st quarter. First Trust Advisors LP now owns 873,338 shares of the transportation company's stock valued at $86,941,000 after acquiring an additional 103,047 shares during the period. Institutional investors and hedge funds own 93.11% of the company's stock.

Herc Trading Down 1.3%

Shares of HRI stock opened at $156.01 on Wednesday. The business's fifty day moving average price is $154.14 and its 200 day moving average price is $137.67. The firm has a market capitalization of $5.22 billion, a PE ratio of 106.13, a P/E/G ratio of 21.94 and a beta of 1.87. The company has a debt-to-equity ratio of 4.22, a current ratio of 1.10 and a quick ratio of 1.10. Herc Holdings Inc. has a 1-year low of $88.45 and a 1-year high of $188.35.

Herc (NYSE:HRI - Get Free Report) last released its earnings results on Tuesday, July 28th. The transportation company reported $1.43 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.67. Herc had a return on equity of 10.33% and a net margin of 1.01%.The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.16 billion. During the same quarter last year, the company earned $1.87 earnings per share. Herc's quarterly revenue was up 20.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Herc Holdings Inc. will post 6.93 EPS for the current fiscal year.

Herc Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Wednesday, September 2nd will be paid a $0.70 dividend. The ex-dividend date is Wednesday, September 2nd. This represents a $2.80 annualized dividend and a dividend yield of 1.8%. Herc's dividend payout ratio (DPR) is 190.48%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on HRI. Zacks Research raised Herc from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 9th. Weiss Ratings raised Herc from a "sell (d+)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. BNP Paribas Exane lifted their price objective on shares of Herc from $160.00 to $165.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. Citigroup lifted their price objective on shares of Herc from $155.00 to $175.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Finally, Wells Fargo & Company boosted their price objective on shares of Herc from $176.00 to $218.00 and gave the company an "overweight" rating in a research note on Monday, August 17th. Five analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Herc has a consensus rating of "Moderate Buy" and an average price target of $183.00.

Herc Profile

Herc Holdings Inc NYSE: HRI operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company's fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.

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