Penn Capital Management Company LLC Buys New Stake in Herc Holdings Inc. $HRI

Key Points

• Penn Capital Management acquired 146,723 Herc Holdings shares worth approximately $21.1 million, giving it a 0.44% stake; institutional investors collectively own 93.11% of the company.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $183, above the stock’s recent $150.43 price. Herc also exceeded quarterly earnings expectations, reporting $1.43 EPS and $1.20 billion in revenue.
• Herc declared a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and a 1.9% yield, though its payout ratio remains elevated at 190.48%.

Penn Capital Management Company LLC purchased a new position in shares of Herc Holdings Inc. (NYSE:HRI - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 146,723 shares of the transportation company's stock, valued at approximately $21,070,000. Herc makes up about 1.3% of Penn Capital Management Company LLC's holdings, making the stock its 25th largest holding. Penn Capital Management Company LLC owned 0.44% of Herc as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in HRI. Northwestern Mutual Wealth Management Co. increased its holdings in Herc by 4.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,608 shares of the transportation company's stock valued at $239,000 after buying an additional 72 shares in the last quarter. Wealthspire Advisors LLC boosted its stake in shares of Herc by 2.8% during the 4th quarter. Wealthspire Advisors LLC now owns 2,717 shares of the transportation company's stock worth $403,000 after acquiring an additional 75 shares in the last quarter. Captrust Financial Advisors grew its position in shares of Herc by 5.1% during the 2nd quarter. Captrust Financial Advisors now owns 2,051 shares of the transportation company's stock valued at $270,000 after acquiring an additional 100 shares during the period. State of Wyoming grew its position in shares of Herc by 21.0% during the 1st quarter. State of Wyoming now owns 616 shares of the transportation company's stock valued at $61,000 after acquiring an additional 107 shares during the period. Finally, Smartleaf Asset Management LLC increased its stake in shares of Herc by 50.2% in the 4th quarter. Smartleaf Asset Management LLC now owns 332 shares of the transportation company's stock valued at $51,000 after purchasing an additional 111 shares in the last quarter. Institutional investors and hedge funds own 93.11% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on HRI. JPMorgan Chase & Co. upped their price target on Herc from $140.00 to $165.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. BNP Paribas Exane boosted their price objective on Herc from $160.00 to $165.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. Citigroup upped their target price on Herc from $155.00 to $175.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Weiss Ratings upgraded Herc from a "sell (d+)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. Finally, KeyCorp boosted their price target on shares of Herc from $165.00 to $185.00 and gave the stock an "overweight" rating in a report on Wednesday, July 29th. Five equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $183.00.

Herc Stock Down 3.2%

Shares of HRI opened at $150.43 on Friday. The company has a debt-to-equity ratio of 4.22, a quick ratio of 1.10 and a current ratio of 1.10. Herc Holdings Inc. has a one year low of $88.45 and a one year high of $188.35. The stock has a market capitalization of $5.03 billion, a price-to-earnings ratio of 102.33, a PEG ratio of 20.91 and a beta of 1.87. The stock has a 50 day moving average price of $154.26 and a 200 day moving average price of $137.48.

Herc (NYSE:HRI - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The transportation company reported $1.43 earnings per share 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 for the quarter, compared to analyst estimates of $1.16 billion. During the same quarter last year, the firm posted $1.87 EPS. The firm's revenue for the quarter was up 20.2% on a year-over-year basis. Equities research analysts forecast that Herc Holdings Inc. will post 6.93 earnings per share for the current fiscal year.

Herc Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, September 2nd will be paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Wednesday, September 2nd. Herc's dividend payout ratio (DPR) is currently 190.48%.

Herc Company 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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