HTZ Stock Recent News

President Trump's auto tariffs are bad news for much of the auto industry—but not rental car companies.

On Thursday, stocks of car rental companies Hertz and Avis saw their values unexpectedly take off. As of midday, shares of Hertz Global Holdings were trading at around $4.15, an intraday increase of more than 20%.

Geopolitical news is providing a lift to the auto rental sector.

Hertz Global Holding and Avis Budget Group shares surged after President Trump announced tariffs that would bring fresh complications to auto manufacturers.

Shares of highly shorted Hertz and Avis Budget Group surged on Thursday as U.S. President Donald Trump's plan to slap a 25% tariff on imported vehicles raised prospects of consumers opting for car rentals instead of buying expensive new cars.

Knighthead Capital Management is a New York-based hedge fund specializing in fundamental analysis, operational and financial turnarounds, and risk management.

[00:00:04] Doug McIntyre: Hertz made an interesting decision two or three years ago that they were going to buy several tens of thousands of Teslas on the theory that Americans would adopt EVs fast.

I maintain a sell rating for Hertz Global due to weak revenue trends, elevated depreciation per unit (DPU), and potential liquidity risks. HTZ's 4Q24 results were disappointing, with revenue declining 6.6% y/y and EBITDA significantly below expectations due to high DPU. Fleet reduction limits HTZ's ability to capture demand growth, potentially losing market share to competitors like Avis Budget Group.

Hertz's financial struggles stem from a poorly timed investment in electric vehicles, leading to significant losses, mounting debt, and a steep stock decline. Q4 2024 results were disappointing, with revenue down 7% year-over-year and a non-GAAP loss of $1.18 per share, both missing estimates for the third consecutive quarter. The balance sheet is very weak, with rising debt and insufficient cash flow, exacerbated by higher interest expenses and a large amount of debt maturing soon.

Today the markets are displaying a show of resilience in the face of headwinds like inflation and tariffs, with all three of the major indices trading higher out of the gate. The S&P 500 has been buoyed by stocks like Tesla (Nasdaq: TSLA) and Apple (Nasdaq: AAPL) while Microsoft (Nasdaq: MSFT) and Amazon (Nasdaq: AMZN) got off to a slower start. President Trump is expected to hold a news conference on reciprocal tariffs this afternoon, which should be positive for the auto sector. Tesla is extending its gains in morning trading, rising by nearly 4% after securing a massive $400 million contract from the U.S. government for its armored vehicles. Separately, following Elon Musk’s nearly $100 billion bid for OpenAI, the serial acquirer said he would drop his offer if the company remains in its current structure as a non-profit, according to reports. OpenAI backer Microsoft is trading slightly lower at last check. Here’s a look at market performance as of mid-morning: Dow Jones Ind