Connor Clark & Lunn Investment Management Ltd. Makes New Investment in Herc Holdings Inc. (NYSE:HRI)

Key Points

• Connor Clark & Lunn Investment Management Ltd. invested approximately $6.79 million in Herc Holdings Inc., acquiring 50,586 shares, which represents about 0.18% of the company's total outstanding shares.
• Herc Holdings recently declared a quarterly dividend of $0.70 per share, with an annualized dividend yield of 2.5% and a payout ratio of 325.58%.
• Wall Street analysts have recently adjusted their price targets for Herc, with estimates ranging from $140.00 to $160.00, showing a general trend of caution regarding the stock's valuation.

Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Herc Holdings Inc. (NYSE:HRI - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 50,586 shares of the transportation company's stock, valued at approximately $6,792,000. Connor Clark & Lunn Investment Management Ltd. owned about 0.18% of Herc as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. Allspring Global Investments Holdings LLC acquired a new stake in shares of Herc during the first quarter worth $11,259,000. D.A. Davidson & CO. boosted its holdings in shares of Herc by 9.6% during the first quarter. D.A. Davidson & CO. now owns 39,246 shares of the transportation company's stock worth $5,270,000 after purchasing an additional 3,435 shares during the last quarter. Handelsbanken Fonder AB boosted its holdings in shares of Herc by 8.0% during the first quarter. Handelsbanken Fonder AB now owns 6,758 shares of the transportation company's stock worth $907,000 after purchasing an additional 500 shares during the last quarter. Millennium Management LLC boosted its holdings in shares of Herc by 1,221.2% during the fourth quarter. Millennium Management LLC now owns 40,732 shares of the transportation company's stock worth $7,712,000 after purchasing an additional 37,649 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new stake in shares of Herc during the fourth quarter worth $2,359,000. Institutional investors and hedge funds own 93.11% of the company's stock.

Analysts Set New Price Targets

HRI has been the topic of several analyst reports. Barclays decreased their price objective on Herc from $250.00 to $160.00 and set an "overweight" rating on the stock in a report on Thursday, April 24th. Robert W. Baird decreased their price objective on Herc from $142.00 to $137.00 and set a "neutral" rating on the stock in a report on Wednesday, July 30th. The Goldman Sachs Group restated a "buy" rating and set a $146.00 price objective (down previously from $171.00) on shares of Herc in a report on Tuesday, April 22nd. Finally, Citigroup reduced their target price on Herc from $170.00 to $140.00 and set a "buy" rating on the stock in a report on Wednesday, July 30th. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $144.60.

Herc Trading Up 7.2%

Herc stock traded up $8.65 during midday trading on Wednesday, reaching $129.53. The stock had a trading volume of 406,349 shares, compared to its average volume of 641,481. Herc Holdings Inc. has a twelve month low of $96.18 and a twelve month high of $246.88. The stock has a market capitalization of $4.31 billion, a PE ratio of 150.62, a price-to-earnings-growth ratio of 1.42 and a beta of 1.86. The company has a debt-to-equity ratio of 4.37, a quick ratio of 1.15 and a current ratio of 1.15. The stock's 50-day simple moving average is $127.68 and its 200 day simple moving average is $136.73.

Herc (NYSE:HRI - Get Free Report) last issued its earnings results on Tuesday, July 29th. The transportation company reported $1.87 earnings per share for the quarter, beating analysts' consensus estimates of $1.29 by $0.58. Herc had a return on equity of 20.77% and a net margin of 0.61%. The firm had revenue of $1 billion for the quarter, compared to analysts' expectations of $868.23 million. Analysts expect that Herc Holdings Inc. will post 12.84 EPS for the current year.

Herc Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Friday, August 22nd will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date is Friday, August 22nd. Herc's payout ratio is currently 325.58%.

About Herc

Herc Holdings Inc, together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment.