Herc (NYSE:HRI) Price Target Raised to $230.00

Herc (NYSE:HRI) had its target price increased by JPMorgan Chase & Co. from $165.00 to $230.00 in a research note issued to investors on Wednesday morning,Benzinga reports. They currently have an overweight rating on the transportation company’s stock.

HRI has been the topic of several other research reports. Zacks Research raised Herc from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 14th. BNP Paribas Exane increased their price target on shares of Herc from $165.00 to $176.00 and gave the company a “neutral” rating in a research note on Wednesday. KeyCorp raised their price objective on shares of Herc from $165.00 to $185.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Weiss Ratings reissued a “hold (c)” rating on shares of Herc in a report on Monday. Finally, Barclays boosted their price objective on shares of Herc from $175.00 to $200.00 and gave the stock an “overweight” rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $201.57.

Herc Stock Performance

NYSE:HRI opened at $165.24 on Wednesday. The firm has a market capitalization of $5.53 billion, a PE ratio of 22.83 and a beta of 2.04. The business’s fifty day moving average price is $139.30 and its 200 day moving average price is $139.39. The company has a debt-to-equity ratio of 4.08, a current ratio of 1.08 and a quick ratio of 1.10. Herc has a 12 month low of $88.45 and a 12 month high of $188.35.

Herc (NYSE:HRI) last announced its quarterly earnings results on Tuesday, October 27th. The transportation company reported $3.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.92 by $0.99. The company had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.35 billion. Herc had a return on equity of 13.21% and a net margin of 2.50%. Herc’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the previous year, the business earned $2.22 EPS. On average, sell-side analysts anticipate that Herc will post 7.87 earnings per share for the current fiscal year.

Herc Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Investors of record on Wednesday, September 2nd were given a $0.70 dividend. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.7%. Herc’s dividend payout ratio is 76.29%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp acquired a new stake in Herc during the 2nd quarter worth $86,054,000. Cooper Creek Partners Management LLC purchased a new position in shares of Herc in the 1st quarter valued at approximately $21,866,000. Dimensional Fund Advisors LP grew its stake in shares of Herc by 17.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,164,022 shares of the transportation company’s stock valued at $115,872,000 after purchasing an additional 170,189 shares during the last quarter. Penn Capital Management Company LLC acquired a new position in shares of Herc in the second quarter valued at approximately $21,070,000. Finally, Bank of America Corp DE increased its holdings in shares of Herc by 147.8% in the first quarter. Bank of America Corp DE now owns 235,320 shares of the transportation company’s stock valued at $23,426,000 after purchasing an additional 140,355 shares during the period. Hedge funds and other institutional investors own 93.11% of the company’s stock.

Key Stories Impacting Herc

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Strong earnings beat: Herc reported third-quarter adjusted earnings of $3.91 per share, well above the $2.92 analyst consensus. Revenue reached approximately $1.36 billion, up 4.6% year over year and slightly ahead of expectations. Why Herc Holdings Stock Surged This Week
• Positive Sentiment: Improved rental economics: Equipment rental revenue increased 12% despite fleet growth of less than 2%, indicating better utilization and operating efficiency. These results helped drive the stock’s recent gains. HRI Q3 Deep Dive
• Positive Sentiment: Favorable growth outlook: Expansion in specialty equipment and demand tied to large infrastructure and industrial projects are improving management’s outlook and could support future revenue and margins. HRI Q3 Deep Dive
• Positive Sentiment: Analyst support: Analysts at Robert W. Baird, JPMorgan, BNP Paribas Exane and Citigroup issued positive forecasts or indicated potential for further appreciation, reinforcing bullish sentiment. Baird Forecast
• Neutral Sentiment: Momentum remains strong: Zacks highlighted HRI as a strong momentum stock, while reports noted that it has outperformed many transportation-related peers. Momentum-based interest may continue attracting investors. Why Herc Is a Strong Momentum Stock
• Negative Sentiment: Profit-taking and financial risk: After rising substantially toward its 52-week high, HRI may face short-term selling pressure. Its elevated debt-to-equity ratio and relatively modest net margin remain risks, particularly if equipment demand or rental pricing weakens.

About Herc

Herc Holdings Inc, operating primarily through the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, commercial and government customers. The company provides access to equipment and related services intended to help customers complete projects without purchasing and maintaining their own fleets.

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