Herc (NYSE:HRI) Shares Gap Down After Earnings Miss

Herc Holdings Inc. (NYSE:HRI - Get Free Report) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $111.50, but opened at $102.99. Herc shares last traded at $101.60, with a volume of 51,330 shares trading hands.

The transportation company reported $1.30 earnings per share for the quarter, missing the consensus estimate of $2.51 by ($1.21). The company had revenue of $861.00 million for the quarter, compared to analyst estimates of $841.67 million. Herc had a return on equity of 26.48% and a net margin of 5.91%. During the same period in the prior year, the business posted $2.36 earnings per share.

Herc Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 4th. Investors of record on Tuesday, February 18th were given a dividend of $0.70 per share. This is a boost from Herc's previous quarterly dividend of $0.67. This represents a $2.80 annualized dividend and a yield of 2.58%. The ex-dividend date of this dividend was Tuesday, February 18th. Herc's dividend payout ratio (DPR) is currently 37.79%.

Analyst Ratings Changes

HRI has been the topic of a number of analyst reports. Barclays dropped their price objective on shares of Herc from $250.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday. Robert W. Baird dropped their price target on shares of Herc from $129.00 to $110.00 and set a "neutral" rating on the stock in a research report on Wednesday. The Goldman Sachs Group reiterated a "buy" rating and issued a $146.00 price objective (down previously from $171.00) on shares of Herc in a research report on Tuesday. Citigroup lowered their target price on shares of Herc from $165.00 to $140.00 and set a "buy" rating on the stock in a research note on Tuesday, April 8th. Finally, JPMorgan Chase & Co. cut their price target on Herc from $225.00 to $140.00 and set a "neutral" rating for the company in a research note on Monday, April 14th. Three analysts have rated the stock with a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat.com, Herc currently has a consensus rating of "Moderate Buy" and a consensus price target of $139.20.

Hedge Funds Weigh In On Herc

A number of large investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp increased its stake in shares of Herc by 878.9% during the fourth quarter. Jones Financial Companies Lllp now owns 186 shares of the transportation company's stock worth $35,000 after purchasing an additional 167 shares in the last quarter. Quarry LP increased its stake in Herc by 646.7% during the 4th quarter. Quarry LP now owns 224 shares of the transportation company's stock worth $42,000 after buying an additional 194 shares in the last quarter. Nomura Asset Management Co. Ltd. raised its holdings in shares of Herc by 53.3% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 230 shares of the transportation company's stock valued at $44,000 after acquiring an additional 80 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of Herc during the fourth quarter valued at approximately $59,000. Finally, PNC Financial Services Group Inc. lifted its position in shares of Herc by 54.6% in the fourth quarter. PNC Financial Services Group Inc. now owns 368 shares of the transportation company's stock valued at $70,000 after acquiring an additional 130 shares in the last quarter. 93.11% of the stock is currently owned by institutional investors and hedge funds.

Herc Price Performance

The company has a debt-to-equity ratio of 2.99, a current ratio of 1.38 and a quick ratio of 1.38. The stock has a market capitalization of $3.09 billion, a price-to-earnings ratio of 14.63, a price-to-earnings-growth ratio of 1.61 and a beta of 1.93. The stock has a 50 day moving average price of $130.80 and a 200-day moving average price of $178.48.

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.