Why Hertz (HTZ) Stock Spiked Today
NEW YORK (TheStreet) -- Shares of Hertz Global (HTZ) - Get Report closed up 12.60% to $8.67 on heavy trading volume Tuesday after key executives purchased shares on Friday and Monday.
The car rental company revealed that CEO John Tague bought 47,000 shares at $7.85 on Friday and 19,000 shares at $7.80 on Monday, while CFO Thomas Kennedy purchased 40,000 shares at $7.76 on Friday and Chief Revenue Officer Jeffrey Foland bought 65,000 shares at $7.63 on Friday, according to MarketWatch.
Hertz has been negatively impacted by a global decline in rental prices, and reported a first quarter loss of $51 million last Monday. The company nonetheless backed its previous forecast for the full year.
MKM Partners analyst Christopher Agnew believes that Hertz's outlook will in fact improve, CNBC reports. Used car prices increased in April vs. March, "which likely indicates that selling pressure from excess rental fleet in March has largely abated," he pointed out in a note.
The stock is down 1.32% to $8.56 in after-hours trading.
About 17.45 million shares of Hertz were traded today vs. its average trading volume of roughly 9.42 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Hertz's weaknesses include its generally disappointing historical performance in the stock itself, generally high debt management risk and weak operating cash flow.
You can view the full analysis from the report here: HTZ
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
