NEW YORK (TheStreet) -- Shares of Hertz Global Holdings HTZ rose 0.53% to $28.61 in morning trading Monday after chairman and CEO Mark P. Frissora stepped down amid pressure from activist investor Carl Icahn.
The company said Frissora vacated his position for personal reasons. Brian P. MacDonald, the head of Hertz Equipment Rental, will succeed him as interim CEO. Hertz Equipment Rental will be spun off early next year. Linda Fayne Levinson, the head independent director of the board, will become nonexecutive chairwoman.
Icahn disclosed an 8.48% stake in Hertz last month and announced plans to increase value for shareholders. The activist investor said one of his problems with the company was "lack of confidence in management."
More than 10.3 million shares had changed hands as of 10:15 a.m., compared to the average volume of 9,545,740.
Separately, TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."