What Happened?
Shares of global car rental company Hertz (NASDAQ: HTZ) jumped 3.1% in the afternoon session after the company announced its new virtual showroom technology has driven a 30% uplift in lead conversions for its Public Carriage Office (PCO) program.
The PCO program offers hire-ready vehicles to professional drivers. The new system uses 3D photography to create an immersive virtual showroom, making sales channels available to drivers 24/7. This operational improvement suggests increased efficiency and potential for revenue growth in that segment. Adding to the positive sentiment, prominent investment firm Pershing Square Holdings recently disclosed its position in Hertz. This endorsement highlights institutional confidence in the company's ongoing turnaround and recovery strategy, further bolstering investor optimism despite the company's higher financial leverage compared to peers.
The shares closed the day at $6.39, up 2.7% from previous close.
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What Is The Market Telling Us
Hertz’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 8.2% on the news that Pershing Square Holdings recently reiterated its confidence in the company in its second-quarter 2025 investor letter. The investment firm, which began buying shares late last year, noted that it views Hertz as a turnaround story and believes the stock price "can increase by a multiple of our cost in reasonably likely scenarios.".
Hertz is up 71.6% since the beginning of the year, but at $6.40 per share, it is still trading 26% below its 52-week high of $8.65 from April 2025. Investors who bought $1,000 worth of Hertz’s shares at the IPO in June 2021 would now be looking at an investment worth $237.12.
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