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Hertz Global Holdings, Inc. (HTZ)

NYSE - NYSE Delayed Price. Currency in USD
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0.00000.0000 (0.00%)
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Neutralpattern detected
Previous Close0.0000
Bid0.0000 x 45100
Ask0.0000 x 29200
Day's Range1.6600 - 1.9900
52 Week Range0.4000 - 20.8500
Avg. Volume35,774,306
Market Cap0
Beta (5Y Monthly)N/A
PE Ratio (TTM)-0.00
Earnings DateNov 02, 2020 - Nov 06, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est20.00
  • As Hertz Gets Delisted, It Does Not Belong In Long-Term Portfolios

    As Hertz Gets Delisted, It Does Not Belong In Long-Term Portfolios

    Vehicle rental company Hertz Global (OTCMKTS:HTZGQ) and Hertz stock is no longer traded on the New York Stock Exchange. On Oct. 29, Intercontinental Exchange (NYSE:ICE), which owns the NYSE announced, “the staff of NYSE Regulation has determined to suspend trading in the common stock of Hertz Global Holdings, Inc. (the “Company”) — ticker symbol HTZ — from the NYSE.” Source: Shutterstock The pandemic had a significant effect on a number of sectors, such as travel and leisure. The car rental sector relies heavily on air travel as many passengers rent vehicles at airports. Recent research has studied the “Impact of COVID-19 on Global Car Rental Industry and Ride and Share Transport Services.” The authors highlight, “The pandemic led to Hertz filing for bankruptcy, albeit after paying US$16 million in retention bonuses on the eve of bankruptcy to its executives. Losses led to various cost-containment measures, which saw a record number of employees being laid off and disposal of non-core assets.”InvestorPlace - Stock Market News, Stock Advice & Trading Tips Florida-based Hertz Global is more than 100 years old. Its vehicle rental brands worldwide include Hertz, Dollar and Thrifty. When a publicly-listed and well-established company like Hertz declares bankruptcy, it is not always emotionally or financially easy for shareholders to accept what that means for the common stock. Therefore, today’s article will discuss what investors in Hertz stock may expect in future months. Shareholders Have the Last Claim Not every travel or car rental company has gone bust during the pandemic. For example, Avis (NASDAQ:CAR) is up more than 12% year-to-date. 7 Retail Stocks That Will Benefit From 2020’s Holiday Shopping Season Steve Ford of Advanced Applied Project Management Solutions explains the demise of Hertz clearly: “Hertz had, in recent years, taken on more than $24 billion in debt, primarily due to corporate acquisitions and car purchases. This debt was set against a cash reserve of $1 billion… With the onset of COVID-19 … Hertz lost all revenue.. Unable to pay its creditors, Hertz filed for Chapter 11 bankruptcy protection on May 22, 2020.” We would add to this analysis that U.S. corporate bankruptcy laws determine who gets paid first. Shareholders have the last claim on assets. In most cases, they receive nothing. InvestorPlace.com contributor Mark R. Hake recently wrote about the delisting of Hertz stock and concluded, “This is an indication that Hertz stock has virtually no value and no one should be buying it… There’s nothing left for owners of HTZ stock.” Put another way, current investors in Hertz stock are not likely to get any money at the end of the bankruptcy. Earlier in the year, even billionaire investor Carl Icahn, who used to be the largest shareholder in Hertz stock, sold his holdings, representing a 39% stake in the car rental group. In the coming weeks, there could still be speculative trading with an up bias in Hertz stock. Yet, current shareholders should not get their hopes high. In fact, on Oct. 16, shares traded intraday between $1.67 and $2.86, on high volume with no apparent news or reason. Suggestions centered around algo program traders and Robinhood speculators. However, the shares are currently around $1.05. Bottom Line on Hertz Stock The recent delisting of Hertz stock was a negative development for Hertz shareholders. The group used a complex corporate structure and had extreme levels of debt, which led to insolvency during the rough months of 2020. Various negotiations and court proceedings leading to Hertz’s eventual bankruptcy will likely take more time. It is also a high-level bankruptcy, getting media attention. However, current investors in Hertz stock should appreciate that the shares will likely end up worthless. If I were a shareholder, I would sell now and get out completely. If I were a short-term trader, I would not speculate on Hertz stock. Our markets offer ample opportunities in robust asset classes or stocks both for long-term investors and short-term traders. But Hertz stock is not one of them. For example, those investors who are interested in speculative companies may consider investing in the high-yield corporate-bond market. They can use exchange-traded funds (ETFs) to buy into these junk bonds. Examples of such ETFs would include the Credit Suisse High Yield Bond Fund (NYSEARCA:DHY), the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG), or the SPDR Bloomberg Barclays High Yield Bond ETF (NYSEARCA:JNK). On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tezcan Gecgil has worked in investment management for more than two decades in the U.S. and U.K. In addition to formal higher education in the field including a Ph.D, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post As Hertz Gets Delisted, It Does Not Belong In Long-Term Portfolios appeared first on InvestorPlace.

  • Hertz Stock: It’s Time To Let This One Go Already

    Hertz Stock: It’s Time To Let This One Go Already

    One of the interesting trends in trading this year has been the rise of bankruptcy stocks. In the past, when a company filed bankruptcy, its stock usually went to zero almost immediately. This year, however, many such zombie companies have continued to trade at a fevered pitch for far longer than you might reasonably expect. Hertz (OTCMKTS:HTZGQ) is one such example. Hertz filed for bankruptcy this spring in the wake of the novel coronavirus. You’d normally expect Hertz stock to quickly disappear from the scene. Source: aureliefrance / Shutterstock.com Instead, Hertz’ shares soared to $6 each at one point after the bankruptcy filing. In fact, there was so much excitement among Robinhood and retail traders that Hertz tried to raise more money issuing new shares even after it was already insolvent. Now, however, as the bankruptcy drags on and it has become clear that current shareholders aren’t going to get anything, reality is finally setting in. The stock has settled back down to $1 per share and has been delisted from the New York Stock Exchange. And, let’s be clear, it’s only going to get worse from here. Don’t Mistake Funding For A Recovery Hertz stock has surged on several occasions in recent months. Often, these moves in the stock have come on news of Hertz arranging more financing. For example, on October 16, Hertz stock soared almost 150% in a single day because of news on its debtor-in-possession (DIP) financing agreement.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 7 Retail Stocks That Will Benefit From 2020’s Holiday Shopping Season The DIP arrangement will provide Hertz with an additional $1.6 billion in funding. This, in turn, will help cover Hertz’ operating losses and give it cash for updating its vehicle fleet. Though the pandemic rages on, Hertz can’t just stop spending money until customers come back. Rather, it still has to pay employees and maintain and care for its fleet of vehicles so that there is an operational business whenever travel does get going again. However, this debt doesn’t come free. In fact, it’s extremely expensive, as it bears a greater than 7% interest rate. And that’s not even the biggest problem. With DIPs, essentially, the lender now owns the assets and the company continues to operate them for the new creditors’ benefit. This is better than having to liquidate everything immediately in that it saves jobs and may allow the brand retain some value for new ownership. But it’s exceptionally uncommon for common stockholders to maintain any ownership in the business once the DIP lenders have taken control. Stock Delisted And More Losses Hertz made news earlier this summer when it attempted to pull off the unprecedented move of issuing new stock when it was already in bankruptcy. This was, needless to say, unusual. Regulators ultimately blocked the maneuver; it was simply too high risk to issue stock to the public in an already bankrupt firm with no meaningful prospects of saving common shareholders. Hertz’ own filing disclosed the fact that the new stock was likely to end up worthless. You might have imagined that Hertz stock would quietly disappear after that. But it took awhile for the show to wind down. It wasn’t until October 29 that the New York Stock Exchange finally delisted Hertz shares. There were delays with delisting firms due to Covid-19, but now the stock exchanges are catching up. Hertz stock dropped significantly following that, as you’d expect. Without being listed on a major exchange, trading volume tends to dry up, which leads to a slumping share price. Adding to that, the company reported its quarterly results on Monday. Hertz lost another $222 million for the quarter. Additionally, revenues slumped 56%; the economic reopening thus far hasn’t been nearly enough to get Hertz back on the road. And with the DIP lenders funding Hertz now, there won’t be much of anything left to support the common stock by the time business conditions really start to normalize. Hertz Stock Verdict Traders may be hoping that Hertz can be the next Luckin Coffee (OTCMKTS:LKNCY). Earlier this year, Luckin admitted to massive accounting fraud, and the stock collapsed. The Nasdaq delisted the firm’s shares and many of the key executives left. Shares slumped to just 95 cents. But now they’re back up to $5, even as they still trade on the pink sheets. Speculators are willing to give Luckin the benefit of the doubt. So why not Hertz as well? Here’s where the parallel breaks down: Luckin had no meaningful amount of debt. And, aside from leases for its cafes, Luckin didn’t have a ton of fixed costs — so it could carry on its business even with all the terrible headlines. Hertz, by contrast, needs billions of dollars to merely be operational. Cars aren’t cheap, and they depreciate quickly. Hertz can’t just wait for the coronavirus to blow over; it owes billions of dollars that have to be dealt with now. This is why Hertz stock will not have a similar comeback to some other stocks that have fallen sharply. Hertz simply needs more capital immediately, and there’s no way to obtain it that would leave current Hertz shareholders in tact. Take General Motors (NYSE:GM) for example. That company went bust during the financial crisis of 2008. The old General Motors stock turned into Motors Liquidation Company and eventually ended up worthless. While Motors Liquidation had no value, the debt-holders got stock in new GM, which is what you see on the stock market now. Hertz is likely to suffer a similar fate; the company may still exist in the future but people owning current Hertz stock won’t own anything. On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.  More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Hertz Stock: It’s Time To Let This One Go Already appeared first on InvestorPlace.

  • Hertz Global Holdings Reports Third Quarter 2020 Financial Results
    PR Newswire

    Hertz Global Holdings Reports Third Quarter 2020 Financial Results

    Hertz Global Holdings, Inc. (OTCPK: HTZGQ) ("Hertz Global" or the "Company") today reported results for its third quarter 2020 with revenue of $1.3 billion, a net loss attributable to the Company of $222 million and Adjusted Corporate EBITDA loss of $26 million. Liquidity at the end of the third quarter was $1.1 billion.