Herc (NYSE:HRI) Shares Up 4.2% - Should You Buy?

Key Points

• Herc shares rose 4.2% to approximately $128.64, though trading volume was 85% below the average session level.
• Analyst sentiment is broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $178.43. Recent firms raised their ratings or targets, while Wells Fargo lowered its target to $176 but maintained an overweight rating.
• Herc reported quarterly revenue of $1.20 billion and adjusted earnings of $1.43 per share, exceeding estimates, while revenue increased 20.2% year over year. The company also pays a $0.70 quarterly dividend, although its 190.48% payout ratio is elevated.

Herc Holdings Inc. (NYSE:HRI - Get Free Report) shot up 4.2% during mid-day trading on Monday. The stock traded as high as $128.70 and last traded at $128.6360. Approximately 87,473 shares changed hands during trading, a decline of 85% from the average session volume of 601,725 shares. The stock had previously closed at $123.46.

Analysts Set New Price Targets

A number of equities research analysts recently commented on HRI shares. Wells Fargo & Company reduced their price objective on shares of Herc from $218.00 to $176.00 and set an "overweight" rating for the company in a research report on Thursday. JPMorgan Chase & Co. raised Herc from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $165.00 to $175.00 in a research note on Thursday, September 10th. Zacks Research raised Herc from a "hold" rating to a "strong-buy" rating in a report on Monday, September 14th. KeyCorp lifted their price target on Herc from $165.00 to $185.00 and gave the company an "overweight" rating in a research note on Wednesday, July 29th. Finally, Citigroup restated a "buy" rating on shares of Herc in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $178.43.

Herc Stock Performance

The stock's 50-day moving average price is $148.18 and its 200-day moving average price is $137.44. The company has a debt-to-equity ratio of 4.22, a quick ratio of 1.10 and a current ratio of 1.10. The company has a market capitalization of $4.29 billion, a price-to-earnings ratio of 87.44 and a beta of 2.04.

Herc (NYSE:HRI - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.67. Herc had a return on equity of 10.33% and a net margin of 1.01%. The business had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.16 billion. During the same quarter in the prior year, the firm posted $1.87 EPS. The company's revenue was up 20.2% compared to the same quarter last year. As a group, equities research analysts expect that Herc Holdings Inc. will post 7.05 earnings per share for the current year.

Herc Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd were given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date was Wednesday, September 2nd. Herc's payout ratio is presently 190.48%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in HRI. State of Wyoming increased its position in Herc by 21.0% during the 1st quarter. State of Wyoming now owns 616 shares of the transportation company's stock worth $61,000 after purchasing an additional 107 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in Herc in the 2nd quarter valued at about $68,000. NewEdge Advisors LLC lifted its holdings in Herc by 61.4% in the 1st quarter. NewEdge Advisors LLC now owns 694 shares of the transportation company's stock valued at $69,000 after purchasing an additional 264 shares in the last quarter. Nykredit A S acquired a new stake in shares of Herc during the 2nd quarter worth about $133,000. Finally, Arthur M. Cohen & Associates LLC purchased a new stake in shares of Herc during the fourth quarter worth about $208,000. Institutional investors and hedge funds own 93.11% of the company's stock.

Herc Company Profile

Herc Holdings Inc is an equipment rental supplier operating under the Herc Rentals brand. The company provides construction, industrial, commercial and government customers with access to equipment and related services without requiring them to purchase and maintain their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, and general construction tools. Herc Rentals also offers specialty equipment and services for power generation, climate control, pumps, remediation, trench safety, and other specialized project requirements.

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