Herc (NYSE:HRI) Stock Price Down 7% - Here's Why

Key Points

• Herc shares fell about 7% to $125.33 during mid-day trading, with volume roughly 79% below the average daily level.
• Analyst sentiment remains positive overall: Herc has a consensus “Moderate Buy” rating and an average price target of $184.43, with recent upgrades from JPMorgan, Citigroup and Zacks Research.
• Recent quarterly results exceeded expectations, with revenue rising 20.2% year over year to $1.20 billion and EPS of $1.43 versus the $0.76 consensus estimate; the company also paid a $0.70 quarterly dividend.

Herc Holdings Inc. (NYSE:HRI - Get Free Report)'s share price was down 7% during mid-day trading on Wednesday. The company traded as low as $124.40 and last traded at $125.33. 125,486 shares traded hands during trading, a decline of 79% from the average daily volume of 603,210 shares. The stock had previously closed at $134.73.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. BNP Paribas Exane lifted their target price on shares of Herc from $160.00 to $165.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Weiss Ratings raised Herc from a "sell (d+)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. JPMorgan Chase & Co. upgraded Herc from a "neutral" rating to an "overweight" rating and raised their target price for the company from $165.00 to $175.00 in a research note on Thursday, September 10th. Citigroup upped their price target on Herc from $155.00 to $175.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Finally, Zacks Research upgraded Herc from a "hold" rating to a "strong-buy" rating in a report on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, Herc currently has a consensus rating of "Moderate Buy" and an average price target of $184.43.

Herc Stock Down 6.4%

The firm has a market capitalization of $4.22 billion, a P/E ratio of 85.80 and a beta of 2.04. The company has a fifty day simple moving average of $149.55 and a 200 day simple moving average of $136.98. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 4.22.

Herc (NYSE:HRI - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.67. Herc had a return on equity of 10.33% and a net margin of 1.01%.The firm had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same quarter in the previous year, the firm earned $1.87 EPS. Herc's quarterly revenue was up 20.2% compared to the same quarter last year. On average, equities analysts expect that Herc Holdings Inc. will post 6.97 EPS for the current fiscal year.

Herc Dividend Announcement

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

Institutional Investors Weigh In On Herc

Several institutional investors and hedge funds have recently made changes to their positions in HRI. Bank of New York Mellon Corp purchased a new position in shares of Herc in the second quarter worth approximately $86,054,000. Cooper Creek Partners Management LLC bought a new position in Herc in the first quarter worth approximately $21,866,000. Dimensional Fund Advisors LP raised its position in Herc by 17.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,164,022 shares of the transportation company's stock worth $115,872,000 after acquiring an additional 170,189 shares during the period. Penn Capital Management Company LLC purchased a new position in shares of Herc during the 2nd quarter worth $21,070,000. Finally, Bank of America Corp DE grew its position in shares of Herc by 147.8% during the 1st quarter. Bank of America Corp DE now owns 235,320 shares of the transportation company's stock valued at $23,426,000 after acquiring an additional 140,355 shares during the period. Institutional investors own 93.11% of the company's stock.

About Herc

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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