What Happened?
Shares of global car rental company Hertz (NASDAQ: HTZ) jumped 11.8% in the afternoon session after prominent investor Bill Ackman highlighted a bullish analysis of the company on social media. Ackman drew attention to an optimistic outlook for Hertz by reposting it on the social media platform, X. He suggested the company held promising potential. Given his influence in the investment world, such endorsements often drew significant attention to a stock's future prospects, potentially sparking investor interest.
The shares closed the day at $5.72, up 10.4% from previous close.
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What Is The Market Telling Us
Hertz’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. But moves this big are rare even for Hertz and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 4.7% on the news that a generally bearish sentiment from analysts and technical indicators weighed on the stock.
The negative outlook was supported by multiple data points. The average short-term price target from seven analysts pointed to a potential decline of 11.33% from the stock's last closing price. Furthermore, among eleven brokerage firms covering the company, four had issued either a "Sell" or "Strong Sell" rating. Technical indicators also painted a bearish picture, with signals for a downward trend significantly outnumbering those suggesting an upward move. This combination of factors appeared to contribute to the selling pressure on the shares.
Hertz is up 53.4% since the beginning of the year, but at $5.72 per share, it is still trading 33.9% 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 $211.93.
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