Herc Holdings Inc. (NYSE:HRI) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst consensus: Moderate Buy — Nine analysts cover HRI (6 buys, 2 holds, 1 sell) with an average 12‑month price target of $157.71, while recent target revisions range from JPMorgan’s $125 to Barclays’ $175.
• Shares opened at $100.20, trading well below the 1‑year high of $188.35 (1‑year low $88.45); the company has a $3.34B market cap, a negative PE (-556.68) and a high debt‑to‑equity ratio (4.17), highlighting valuation and leverage concerns.
• Latest quarter: EPS beat at $2.07 vs. $1.87 estimate and revenue rose 27.1% YoY to $1.21B (slightly under estimates); Herc also pays a $0.70 quarterly dividend (2.8% yield) despite an anomalous payout ratio (-1,555.56%).

Shares of Herc Holdings Inc. (NYSE:HRI - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the nine ratings firms that are currently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and six have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $157.7143.

Several brokerages recently commented on HRI. Wells Fargo & Company decreased their price target on Herc from $189.00 to $160.00 and set an "overweight" rating on the stock in a research note on Monday. KeyCorp decreased their price target on Herc from $190.00 to $165.00 and set an "overweight" rating on the stock in a research note on Monday, March 16th. JPMorgan Chase & Co. decreased their price target on Herc from $165.00 to $125.00 and set a "neutral" rating on the stock in a research note on Friday, April 10th. Barclays boosted their price target on Herc from $160.00 to $175.00 and gave the company an "overweight" rating in a research note on Friday, January 23rd. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Herc in a research note on Thursday, January 22nd.

Herc Price Performance

Shares of NYSE:HRI opened at $100.20 on Thursday. Herc has a 1-year low of $88.45 and a 1-year high of $188.35. The firm has a market capitalization of $3.34 billion, a PE ratio of -556.68, a PEG ratio of 18.36 and a beta of 1.81. The business's 50 day moving average is $125.92 and its 200-day moving average is $136.82. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 4.17.

Herc (NYSE:HRI - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The transportation company reported $2.07 earnings per share for the quarter, topping the consensus estimate of $1.87 by $0.20. Herc had a return on equity of 13.21% and a net margin of 0.02%.The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.25 billion. During the same quarter last year, the firm earned $3.58 EPS. Herc's revenue for the quarter was up 27.1% compared to the same quarter last year. Sell-side analysts predict that Herc will post 12.84 earnings per share for the current year.

Herc Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 18th were given a $0.70 dividend. The ex-dividend date was Wednesday, February 18th. This represents a $2.80 annualized dividend and a yield of 2.8%. Herc's payout ratio is presently -1,555.56%.

Hedge Funds Weigh In On Herc

Several institutional investors have recently bought and sold shares of the business. Invesco Ltd. raised its position in Herc by 11.2% in the 3rd 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 last quarter. Norges Bank bought a new position in Herc in the 4th quarter valued at $287,269,000. Northwestern Mutual Wealth Management Co. raised its position in Herc by 86,823.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,335,138 shares of the transportation company's stock valued at $198,108,000 after purchasing an additional 1,333,602 shares during the last quarter. American Century Companies Inc. raised its position in Herc by 8.1% in the 3rd quarter. American Century Companies Inc. now owns 1,301,975 shares of the transportation company's stock valued at $151,889,000 after purchasing an additional 97,235 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in Herc by 2.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 993,833 shares of the transportation company's stock valued at $147,480,000 after purchasing an additional 28,024 shares during the last quarter. Institutional investors own 93.11% of the company's stock.

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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