Herc (NYSE:HRI) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Herc (NYSE:HRI) from a strong-buy rating to a hold rating in a report published on Wednesday morning, Zacks.com reports.

According to Zacks, “Herc Holdings, Inc. through its subsidiary Herc Rentals Inc. provides equipment rental suppliers primarily in North America. The company is a full-line equipment-rental supplier in commercial and residential construction, industrial and manufacturing, refineries and petrochemicals, civil infrastructure, automotive, government and municipalities, energy, remediation, emergency response, facilities, entertainment and agriculture. The equipment rental business is supported by ProSolutions (Tm). Herc Holdings Inc., formerly known as Hertz Global Holdings, Inc., is based in Bonita Springs, United States. “

Several other research firms also recently weighed in on HRI. The Goldman Sachs Group lifted their target price on shares of Herc from $125.00 to $143.00 and gave the company a buy rating in a report on Friday, July 23rd. Barclays lifted their target price on shares of Herc from $128.00 to $135.00 and gave the company an overweight rating in a report on Friday, July 23rd. TheStreet upgraded shares of Herc from a c+ rating to a b- rating in a research note on Thursday, July 22nd. KeyCorp boosted their price target on shares of Herc from $145.00 to $175.00 and gave the stock an overweight rating in a research note on Wednesday. Finally, Robert W. Baird boosted their price target on shares of Herc from $145.00 to $158.00 and gave the stock an outperform rating in a research note on Monday, September 20th. One analyst has rated the stock with a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of Buy and a consensus target price of $138.17.

Shares of NYSE HRI opened at $159.98 on Wednesday. The company has a 50 day simple moving average of $126.97 and a 200-day simple moving average of $112.84. The company has a market capitalization of $4.74 billion, a P/E ratio of 30.88, a P/E/G ratio of 0.38 and a beta of 3.09. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.97 and a quick ratio of 0.97. Herc has a 1 year low of $35.44 and a 1 year high of $160.47.

Herc (NYSE:HRI) last posted its earnings results on Thursday, July 22nd. The transportation company reported $1.57 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.24 by $0.33. Herc had a net margin of 8.09% and a return on equity of 21.16%. The firm had revenue of $490.90 million during the quarter, compared to the consensus estimate of $456.93 million. During the same quarter last year, the firm earned $0.25 EPS. The firm’s revenue for the quarter was up 33.4% on a year-over-year basis. As a group, research analysts expect that Herc will post 6.9 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 4th. Stockholders of record on Wednesday, October 20th will be given a dividend of $0.50 per share. The ex-dividend date of this dividend is Tuesday, October 19th. This represents a $2.00 annualized dividend and a dividend yield of 1.25%.

Institutional investors have recently added to or reduced their stakes in the company. EAM Investors LLC purchased a new stake in shares of Herc during the 1st quarter worth $4,751,000. BNP Paribas Arbitrage SA lifted its position in shares of Herc by 45.2% during the 1st quarter. BNP Paribas Arbitrage SA now owns 15,886 shares of the transportation company’s stock worth $1,610,000 after purchasing an additional 4,948 shares during the last quarter. Principal Financial Group Inc. purchased a new stake in shares of Herc during the 1st quarter worth $1,202,000. Westwood Holdings Group Inc. purchased a new stake in shares of Herc during the 1st quarter worth $560,000. Finally, Eaton Vance Management purchased a new stake in shares of Herc during the 1st quarter worth $23,302,000. 96.19% of the stock is owned by institutional investors and hedge funds.

Herc Company Profile

Herc Holdings Inc, together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment.

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