NEW YORK (TheStreet) -- Shares of Hertz Global Holdings Inc. (HTZ) are gaining by 3.63% to $23.43 in late morning trading on Tuesday, as the company announces it raised the U.S. retail prices for all Hertz, Dollar, and Thrifty car rentals reserved for pick-up on or after January 1, 2015.
Investors were thrilled at the prospect of Hertz increasing its revenue and sent shares soaring. Hertz stock has fallen 21% this year through yesterday, Bloomberg reports.
The company said the price hike is due to "fleet depreciation increases, primarily related to residual value declines."
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"Fleet costs are escalating due to declining residual values and, as a result, we have implemented price increases across our car rental brands in the U.S.", Hertz CEO John Tague said in a statement.
"The company is pursuing cost reduction opportunities in addition to its previously announced program to cut expenses $100 million annually, while also increasing investment to improve our customers' rental experience, including refreshing the car rental fleet," Tague added.
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 a number of strengths, 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 compelling growth in net income, revenue growth, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."