Herc (NYSE:HRI) Shares Gap Down Following Weak Earnings

Herc Holdings Inc. (NYSE:HRI)’s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $111.50, but opened at $102.99. Herc shares last traded at $101.60, with a volume of 51,330 shares.

The transportation company reported $1.30 EPS for the quarter, missing the consensus estimate of $2.46 by ($1.16). Herc had a return on equity of 26.48% and a net margin of 5.91%.

Herc Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 4th. Stockholders of record on Tuesday, February 18th were issued a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.80%. The ex-dividend date was Tuesday, February 18th. This is a boost from Herc’s previous quarterly dividend of $0.67. Herc’s dividend payout ratio is 37.79%.

Analysts Set New Price Targets

Several research analysts recently commented on HRI shares. The Goldman Sachs Group reduced their price target on Herc from $234.00 to $201.00 and set a “buy” rating for the company in a research report on Wednesday, March 19th. Citigroup reduced their price target on Herc from $165.00 to $140.00 and set a “buy” rating on the stock in a research report on Tuesday, April 8th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Herc from $225.00 to $140.00 and set a “neutral” rating for the company in a research report on Monday, April 14th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $177.20.

Institutional Investors Weigh In On Herc

A number of large investors have recently made changes to their positions in HRI. Jones Financial Companies Lllp grew its position in Herc by 878.9% in the 4th quarter. Jones Financial Companies Lllp now owns 186 shares of the transportation company’s stock worth $35,000 after purchasing an additional 167 shares during the period. Quarry LP raised its position in shares of Herc by 646.7% during the 4th quarter. Quarry LP now owns 224 shares of the transportation company’s stock valued at $42,000 after buying an additional 194 shares in the last quarter. Nomura Asset Management Co. Ltd. boosted its stake in Herc by 53.3% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 230 shares of the transportation company’s stock worth $44,000 after buying an additional 80 shares during the period. Point72 Asia Singapore Pte. Ltd. purchased a new position in Herc during the 4th quarter valued at $59,000. Finally, PNC Financial Services Group Inc. grew its stake in Herc by 54.6% in the 4th quarter. PNC Financial Services Group Inc. now owns 368 shares of the transportation company’s stock worth $70,000 after acquiring an additional 130 shares in the last quarter. 93.11% of the stock is currently owned by institutional investors.

Herc Stock Performance

The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 2.99. The stock has a market cap of $2.85 billion, a PE ratio of 13.43, a price-to-earnings-growth ratio of 1.61 and a beta of 1.93. The firm has a 50 day moving average price of $137.92 and a 200 day moving average price of $180.14.

About Herc

Herc Holdings Inc, together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment.