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.

Herc Holdings Inc. (NYSE:HRI - Get Free Report)'s stock price 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.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on HRI. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $146.00 price objective (down from $171.00) on shares of Herc in a report on Tuesday, April 22nd. JPMorgan Chase & Co. reduced their price objective on Herc from $225.00 to $140.00 and set a "neutral" rating for the company in a report on Monday, April 14th. Citigroup cut their price objective on Herc from $170.00 to $140.00 and set a "buy" rating on the stock in a research report on Wednesday. Robert W. Baird lowered 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. Finally, Barclays lowered 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 investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $144.60.

Herc Trading Down 1.2%

The company has a debt-to-equity ratio of 4.37, a current ratio of 1.15 and a quick ratio of 1.50. The business's 50-day simple moving average is $129.20 and its two-hundred day simple moving average is $142.31. The stock has a market capitalization of $3.84 billion, a price-to-earnings ratio of 134.37, a PEG ratio of 2.94 and a beta of 1.86.

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

Herc Announces Dividend

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

Institutional Trading of Herc

Several institutional investors have recently added to or reduced their stakes in the stock. University of Texas Texas AM Investment Management Co. acquired a new position in Herc in the second quarter valued at $36,000. Larson Financial Group LLC raised its stake in shares of Herc by 1,831.3% in the 1st quarter. Larson Financial Group LLC now owns 309 shares of the transportation company's stock valued at $41,000 after acquiring an additional 293 shares during the period. Quarry LP grew its holdings in Herc by 646.7% during the 4th quarter. Quarry LP now owns 224 shares of the transportation company's stock valued at $42,000 after purchasing an additional 194 shares in the last quarter. Nomura Asset Management Co. Ltd. grew its holdings in Herc by 53.3% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 230 shares of the transportation company's stock valued at $44,000 after purchasing an additional 80 shares in the last quarter. Finally, Byrne Asset Management LLC acquired a new stake in Herc during the 2nd quarter valued at $45,000. Institutional investors and hedge funds 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.