Herc (NYSE:HRI) Shares Down 3.5% - Here's Why

Key Points

• Herc Holdings Inc. stock declined by 3.5% to $123.76, with trading volume significantly below average, indicating potential investor concern.
• Recent price target adjustments from analysts include a reduction by Robert W. Baird to $137.00 and a drop by Citigroup to $140.00, with a consensus target price of $144.60 reflecting a "Moderate Buy" rating.
• The company reported strong Q2 earnings with an EPS of $1.87, surpassing estimates and showing robust revenue performance of $1 billion, significantly above expectations.

Herc Holdings Inc. (NYSE:HRI - Get Free Report) shares dropped 3.5% on Friday . The stock traded as low as $120.21 and last traded at $123.76. Approximately 148,047 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 508,943 shares. The stock had previously closed at $128.26.

Analysts Set New Price Targets

HRI has been the topic of several analyst reports. Citigroup lowered their target price on shares of Herc from $170.00 to $140.00 and set a "buy" rating on the stock in a report on Wednesday, July 30th. Robert W. Baird lowered their target price on shares of Herc from $142.00 to $137.00 and set a "neutral" rating on the stock in a report on Wednesday, July 30th. Finally, Zacks Research raised shares of Herc from a "strong sell" rating to a "hold" rating in a report on Friday, August 29th. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $144.60.

Herc Stock Performance

The firm has a fifty day moving average of $127.90 and a 200-day moving average of $126.40. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 4.37. The firm has a market cap of $4.13 billion, a P/E ratio of 10.73, a PEG ratio of 1.40 and a beta of 1.83.

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

Herc Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 5th. Shareholders of record on Friday, August 22nd were given a dividend of $0.70 per share. The ex-dividend date was Friday, August 22nd. This represents a $2.80 dividend on an annualized basis and a yield of 2.3%. Herc's dividend payout ratio is presently 325.58%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. State of Wyoming acquired a new position in Herc during the 2nd quarter valued at about $284,000. Caxton Associates LLP bought a new stake in shares of Herc in the 2nd quarter valued at about $586,000. CANADA LIFE ASSURANCE Co increased its stake in shares of Herc by 25.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 16,503 shares of the transportation company's stock valued at $2,179,000 after acquiring an additional 3,354 shares during the last quarter. Tower Research Capital LLC TRC increased its stake in shares of Herc by 209.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,506 shares of the transportation company's stock valued at $593,000 after acquiring an additional 3,051 shares during the last quarter. Finally, Corient Private Wealth LLC bought a new stake in shares of Herc in the 2nd quarter valued at about $1,205,000. 93.11% of the stock is currently owned by institutional investors and hedge funds.

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.