Billionaire Bill Ackman Is Betting Big on Hertz Stock. Should You?
Hertz (HTZ) is a car rental and lease service provider. The company provides services under different programs such as Ultimate Choice, Hertz Gold Plus Rewards, Hertz 24/7, and Hertz My Car. The company also provides fleet services and fleet management services through its subsidiaries. Hertz Global has operations across North America, the Caribbean, Latin America, Europe, the Middle East, and the Asia-Pacific region.
About Hertz Stock
Hertz’s stock has had an eventful 2025 and has gained 138% in the year to date. The company has more than doubled in value in the last 5 days thanks to interest from billionaire Bill Ackman. Hertz’s stock was delisted from the New York Stock Exchange after the company filed for bankruptcy in May 2020, but Hertz has made a comeback. Shares began trading on the Nasdaq in November 2021.
Hertz Reports Q4 Results
Hertz posted its fourth-quarter results on Feb. 13. The company reported a net loss of $479 million and an adjusted loss of $1.18 per share, a 13% improvement from Q4 2023. The figure widely missed analysts’ estimated loss of $0.72 per share. The company saw a 6.6% decline in revenue as it totaled $2.04 billion against analysts’ $2.12 billion estimate.
During the fourth quarter, Hertz had an operating margin of -13.1%, up from -15% posted in the same quarter last year. Adjusted EBITDA improved by 7% to a loss of $357 million, but still missed analysts’ estimates for a loss of $121.5 million.
Billionaire Focus on Hertz
Hertz’s shares have shot up on news that billionaire Bill Ackman has reportedly invested big in the company. Ackman’s hedge fund Pershing Square Capital has purchased 12.71 million Hertz shares. The figure makes up for 4.14% of the company’s total market cap.
Hertz’s shares have more than doubled following the news last week.
The move sees Ackman’s Pershing Square become the third-largest stakeholder in Hertz.
There is speculation that the upcoming recession could force people to look for rental cars giving rental companies a boost. On the other hand, there is a possibility that a recession might see fewer Americans on the road, leading to lower demand for rental cars.
Analyst Takes on HTZ Stock
The recent move has surpassed analysts’ expectations. Those covering Hertz have a consensus “Moderate Sell” rating with a mean price target of $3.24. The stock is now trading above $8.
Hertz has been reviewed by 10 analysts. Six give it a “Hold” rating, one has a “Moderate Sell” rating, and three analysts have a “Strong Sell” rating.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.