Herc (NYSE:HRI) Stock Price Down 5.7% - Should You Sell?

Key Points

• Herc Holdings Inc. (NYSE:HRI) shares dropped by 5.7%, closing at $130.16 with a significant decline in trading volume.
• Analysts have mixed opinions on HRI, with three giving a "buy" rating and three a "hold," while Zacks upgraded the stock to "hold" from "strong sell."
• The company recently announced a quarterly dividend of $0.70, reflecting an annualized dividend yield of 2.1%, despite a high dividend payout ratio of 325.58%.

Herc Holdings Inc. (NYSE:HRI - Get Free Report) shares traded down 5.7% on Tuesday . The stock traded as low as $129.24 and last traded at $130.16. 187,608 shares changed hands during mid-day trading, a decline of 63% from the average session volume of 511,785 shares. The stock had previously closed at $138.02.

Wall Street Analyst Weigh In

Several research analysts recently commented on HRI shares. Zacks Research raised Herc from a "strong sell" rating to a "hold" rating in a research report on Friday, August 29th. Citigroup lowered their price target 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. Finally, Robert W. Baird lowered their price target 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. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Herc has an average rating of "Moderate Buy" and an average price target of $144.60.

Herc Stock Performance

The company has a market capitalization of $4.44 billion, a P/E ratio of 155.25, a PEG ratio of 1.63 and a beta of 1.83. The stock has a fifty day simple moving average of $130.73 and a 200-day simple moving average of $127.19. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 4.37.

Herc (NYSE:HRI - Get Free Report) last issued 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 company had revenue of $1 billion during the quarter, compared to analysts' expectations of $868.23 million. Herc had a return on equity of 20.77% and a net margin of 0.61%. Equities analysts forecast that Herc Holdings Inc. will post 12.84 EPS for the current year.

Herc Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 5th. Stockholders of record on Friday, August 22nd were paid a $0.70 dividend. The ex-dividend date was Friday, August 22nd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.1%. Herc's dividend payout ratio (DPR) is 325.58%.

Institutional Trading of Herc

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. University of Texas Texas AM Investment Management Co. acquired a new stake in Herc in the second quarter worth about $36,000. Larson Financial Group LLC increased its position in Herc by 1,831.3% in the first quarter. Larson Financial Group LLC now owns 309 shares of the transportation company's stock worth $41,000 after purchasing an additional 293 shares during the period. Point72 Asia Singapore Pte. Ltd. acquired a new stake in Herc in the fourth quarter worth about $59,000. Byrne Asset Management LLC acquired a new stake in Herc in the second quarter worth about $45,000. Finally, FNY Investment Advisers LLC acquired a new stake in Herc in the second quarter worth about $47,000. 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.

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