Yousif Capital Management LLC Purchases New Stake in Herc Holdings Inc. $HRI

Key Points

• Yousif Capital Management purchased 8,420 shares of Herc Holdings valued at approximately $1.05 million, while institutional investors collectively own 93.11% of the company.
• Herc reported quarterly EPS of $3.91, beating the $2.92 consensus estimate, while revenue rose 4.6% year over year to $1.36 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $201.57.
• Herc recently paid a quarterly dividend of $0.70 per share, equivalent to an annualized $2.80 dividend and a 1.7% yield; however, its high 4.08 debt-to-equity ratio and 76.29% payout ratio remain notable risks.

Yousif Capital Management LLC purchased a new position in shares of Herc Holdings Inc. (NYSE:HRI - Free Report) during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 8,420 shares of the transportation company's stock, valued at approximately $1,051,000.

Other hedge funds have also recently made changes to their positions in the company. State of Wyoming grew its holdings 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 purchasing an additional 107 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in Herc in the 2nd quarter worth $68,000. NewEdge Advisors LLC raised its position in Herc by 61.4% in the 1st quarter. NewEdge Advisors LLC now owns 694 shares of the transportation company's stock worth $69,000 after purchasing an additional 264 shares during the period. Nykredit A S bought a new stake in Herc in the second quarter worth $133,000. Finally, J. Safra Sarasin Holding AG bought a new stake in Herc in the first quarter worth $223,000. 93.11% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Citigroup upped their price target on shares of Herc from $150.00 to $180.00 and gave the company a "buy" rating in a research report on Wednesday. JPMorgan Chase & Co. boosted their target price on Herc from $165.00 to $230.00 and gave the company an "overweight" rating in a research note on Wednesday. Weiss Ratings restated a "hold (c)" rating on shares of Herc in a report on Monday, October 26th. KeyCorp increased their target price on Herc from $165.00 to $185.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Finally, Wells Fargo & Company raised their price target on Herc from $176.00 to $200.00 and gave the stock an "overweight" rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Herc currently has an average rating of "Moderate Buy" and an average target price of $201.57.

Herc Trading Down 5.0%

NYSE:HRI opened at $165.24 on Friday. The firm has a market capitalization of $5.53 billion, a P/E ratio of 45.02 and a beta of 2.04. The company has a quick ratio of 1.10, a current ratio of 1.08 and a debt-to-equity ratio of 4.08. The company has a fifty day moving average of $139.30 and a 200 day moving average of $139.39. Herc Holdings Inc. has a 52 week low of $88.45 and a 52 week high of $188.35.

Herc (NYSE:HRI - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The transportation company reported $3.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 analyst estimates of $1.35 billion. During the same quarter last year, the firm earned $2.22 EPS. The company's revenue was up 4.6% on a year-over-year basis. On average, research analysts predict that Herc Holdings Inc. will post 7.87 earnings per share for the current year.

Herc Dividend Announcement

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

Key Stories Impacting Herc

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 Company Profile

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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