Herc (NYSE:HRI) Stock Price Up 5.4% - Here's What Happened

Key Points

• Herc shares jumped 5.4% to about $138.06 in Friday trading, though volume was 71% below the average session level.
• Analysts have broadly raised their price targets, with a consensus “Moderate Buy” rating and an average target of $184.43; Wells Fargo’s target rose to $218.
• Herc exceeded quarterly earnings expectations, reporting $1.43 in EPS versus $0.76 expected and $1.20 billion in revenue, up 20.2% year over year. The company also pays a $0.70 quarterly dividend, yielding approximately 2% annually.

Shares of Herc Holdings Inc. (NYSE:HRI - Get Free Report) shot up 5.4% during mid-day trading on Friday. The company traded as high as $138.43 and last traded at $138.0630. 173,901 shares were traded during trading, a decline of 71% from the average session volume of 602,917 shares. The stock had previously closed at $130.94.

Analyst Upgrades and Downgrades

Several analysts have recently commented on HRI shares. KeyCorp increased their target price on shares of Herc from $165.00 to $185.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Citigroup boosted their price target on shares of Herc from $155.00 to $175.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. BNP Paribas Exane upped their price objective on shares of Herc from $160.00 to $165.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Wells Fargo & Company increased their price objective on shares of Herc from $176.00 to $218.00 and gave the company an "overweight" rating in a research note on Monday, August 17th. Finally, Zacks Research upgraded Herc from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $184.43.

Herc Stock Performance

The stock has a market capitalization of $4.59 billion, a PE ratio of 93.49, a P/E/G ratio of 19.66 and a beta of 1.86. The company has a debt-to-equity ratio of 4.22, a current ratio of 1.10 and a quick ratio of 1.10. The business's fifty day moving average price is $152.93 and its 200-day moving average price is $135.82.

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

Herc Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Investors of record on Wednesday, September 2nd were paid a dividend of $0.70 per share. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $2.80 annualized dividend and a yield of 2.0%. Herc's dividend payout ratio (DPR) is currently 190.48%.

Institutional Trading of Herc

A number of hedge funds have recently bought and sold shares of the company. Hantz Financial Services Inc. boosted its holdings in Herc by 342.1% during the 4th quarter. Hantz Financial Services Inc. now owns 168 shares of the transportation company's stock valued at $25,000 after acquiring an additional 130 shares during the period. State of Wyoming lifted its position in Herc by 21.0% in the first quarter. State of Wyoming now owns 616 shares of the transportation company's stock valued at $61,000 after purchasing an additional 107 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in Herc in the second quarter valued at approximately $68,000. NewEdge Advisors LLC boosted its stake in shares of Herc by 61.4% during the first quarter. NewEdge Advisors LLC now owns 694 shares of the transportation company's stock valued at $69,000 after purchasing an additional 264 shares during the period. Finally, Nykredit A S bought a new position in shares of Herc in the second quarter worth approximately $133,000. Institutional investors own 93.11% of the company's stock.

Herc Company Profile

Herc Holdings Inc, operating under the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, government, commercial, and other customers. The company provides short- and long-term rentals of equipment used for construction, maintenance, infrastructure, remediation, and event-related projects.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power-generation and climate-control systems, pumps, trench-safety equipment, tools, and general construction equipment.

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