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Why Herc (HRI) Shares Are Plunging Today

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

HRI Cover Image

What Happened?

Shares of equipment rental company Herc Holdings (NYSE: HRI) fell 7.3% in the afternoon session after BofA Securities double-downgraded the stock to "underperform" from "buy," citing impacts from the Hollywood writers and actors strike. 

The investment bank also cut its price target on the stock to $140 from $150 a share. BofA's decision to lower its rating was based on the potential effects of the Hollywood writers and actors strike. The bank expressed concern that prolonged labor disputes in the entertainment industry could reduce the need for Herc's rental equipment, which is frequently used for film and television productions, thereby affecting the company's performance.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Herc? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Herc’s shares are extremely volatile and have had 40 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 6 days ago when the stock dropped 4.7% on the news that the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

Herc is down 4.8% since the beginning of the year, and at $144.99 per share, it is trading 30.8% below its 52-week high of $209.39 from February 2025. Investors who bought $1,000 worth of Herc’s shares 5 years ago would now be looking at an investment worth $2,266.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.

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