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

Key Points

• Securities of Herc Holdings Inc. (NYSE:HRI) witnessed a significant drop, opening at $137.75 from a previous close of $149.88, and last trading at $128.43.
• Analysts have varying opinions on Herc's stock, with Goldman Sachs setting a price target of $146.00 (down from $171.00) while Barclays reduced theirs from $250.00 to $160.00, indicating considerable bearish sentiment.
• Herc reported a strong earnings performance, with a quarterly EPS of $1.87, exceeding estimates by $0.58, but the stock has still declined 16.3% amid changing analyst ratings.

Shares of Herc Holdings Inc. (NYSE:HRI - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $149.88, but opened at $137.75. Herc shares last traded at $128.43, with a volume of 89,360 shares.

Analysts Set New Price Targets

HRI has been the subject of several research analyst reports. Robert W. Baird reduced their target price on shares of Herc from $142.00 to $137.00 and set a "neutral" rating for the company in a report on Wednesday. The Goldman Sachs Group reaffirmed a "buy" rating and set a $146.00 target price (down previously from $171.00) on shares of Herc in a report on Tuesday, April 22nd. JPMorgan Chase & Co. reduced their target price on shares of Herc from $225.00 to $140.00 and set a "neutral" rating for the company in a report on Monday, April 14th. Citigroup reduced their target price on shares of Herc from $170.00 to $140.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Barclays reduced their target price on shares of Herc from $250.00 to $160.00 and set an "overweight" rating for the company in a report on Thursday, April 24th. Two research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $144.60.

Herc Stock Down 2.0%

The company has a debt-to-equity ratio of 4.37, a quick ratio of 1.50 and a current ratio of 1.15. The stock has a market cap of $3.80 billion, a P/E ratio of 133.06, a P/E/G ratio of 1.38 and a beta of 1.86. The stock's fifty day simple moving average is $128.97 and its 200-day simple moving average is $141.71.

Herc (NYSE:HRI - Get Free Report) last posted its quarterly earnings data 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. The firm had revenue of $1 billion during the quarter, compared to the consensus estimate of $868.23 million. Herc had a net margin of 0.61% and a return on equity of 20.77%. As a group, research analysts forecast that Herc Holdings Inc. will post 12.84 earnings per share for the current fiscal year.

Herc Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Friday, May 30th were given a $0.70 dividend. The ex-dividend date was Friday, May 30th. This represents a $2.80 annualized dividend and a dividend yield of 2.4%. Herc's payout ratio is presently 325.58%.

Institutional Trading of Herc

Institutional investors and hedge funds have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC bought a new stake in shares of Herc during the 1st quarter worth approximately $11,259,000. D.A. Davidson & CO. lifted its holdings in shares of Herc by 9.6% during the 1st quarter. D.A. Davidson & CO. now owns 39,246 shares of the transportation company's stock worth $5,270,000 after acquiring an additional 3,435 shares during the period. Handelsbanken Fonder AB lifted its holdings in shares of Herc by 8.0% during the 1st quarter. Handelsbanken Fonder AB now owns 6,758 shares of the transportation company's stock worth $907,000 after acquiring an additional 500 shares during the period. Millennium Management LLC lifted its holdings in shares of Herc by 1,221.2% during the 4th quarter. Millennium Management LLC now owns 40,732 shares of the transportation company's stock worth $7,712,000 after acquiring an additional 37,649 shares during the period. Finally, Orion Portfolio Solutions LLC lifted its holdings in shares of Herc by 12.8% during the 4th quarter. Orion Portfolio Solutions LLC now owns 2,784 shares of the transportation company's stock worth $527,000 after acquiring an additional 315 shares during the period. Institutional investors own 93.11% of the company's stock.

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.