Pershing Square founder Bill Ackman kicked off a massive Hertz (HTZ) stock rally yesterday when a Securities and Exchange Commission (SEC) filing revealed he now holds a large stake in the car rental company. That positive momentum continued on Thursday, with shares of HTZ stock up 25.22% this morning.
News of Ackman investing in HTZ stock has spurred interest from retail investors. As a result, trading volume surged this morning as some 40.76 million units have changed hands. For perspective, the three-month daily average trading volume for Hertz is roughly a quarter of that at 10.09 million units.
Ackman’s interest in Hertz has also pushed the company’s shares out of penny stock territory. Shares are now trading for more than $7, well above the $5-and-under threshold to be classified as a penny stock. However, the massive interest from retail traders could also attract meme investors, who previously targeted HTZ shares following its 2020 bankruptcy.
Bill Ackman’s Hertz Stock Investment Details
Ackman has acquired 12.7 million shares of HTZ stock through his investment firm, Pershing Square. This gives him a 4% stake in the car rental company. Investors should also note that his holdings in Hertz are worth $90.8 million after the company’s huge rally yesterday and today.
Investors are interested in Ackman’s stake in Hertz as he could bring some much-needed change to the car rental company. Hertz has struggled since its bankruptcy, as the company missed EPS estimates in five of its last eight quarters. Revenue was also below estimates in four of those quarters.
Is HTZ Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Hertz is Moderate Sell, based on two Hold and two Sell ratings over the last three months. With that comes an average price target of $2.93, representing a potential 59.81% downside for HTZ stock.
