Hertz Stock Soars Tuesday: What's Driving the Action?
Hertz Global Holdings Inc (NASDAQ: HTZ ) shares are surging Tuesday, extending last week’s rally as retail traders continue to focus on the heavily-shorted stock following better-than-expected earnings. Hertz Global Holdings stock is charging ahead with explosive momentum. Why is HTZ stock surging? Retail Traders Target Hertz Stock’s High Short Interest Hertz is the most discussed stock on WallStreetBets over the past 24 hours by a wide margin, continuing a trend that started last week as shares charged higher. According to Pro, 73% of available Hertz shares are currently sold short, meaning most of the stock’s float has been borrowed and sold into the market by traders who expect the price to drop. When a stock with high short interest stages a sharp rally, short sellers can be forced to buy back their borrowed shares to limit losses, which pushes the share price hi...
Hertz Global Holdings Inc (NASDAQ: HTZ ) shares are surging Tuesday, extending last week’s rally as retail traders continue to focus on the heavily-shorted stock following better-than-expected earnings.
Hertz Global Holdings stock is charging ahead with explosive momentum.
Why is HTZ stock surging? Retail Traders Target Hertz Stock’s High Short Interest Hertz is the most discussed stock on WallStreetBets over the past 24 hours by a wide margin, continuing a trend that started last week as shares charged higher.
According to Pro, 73% of available Hertz shares are currently sold short, meaning most of the stock’s float has been borrowed and sold into the market by traders who expect the price to drop.
When a stock with high short interest stages a sharp rally, short sellers can be forced to buy back their borrowed shares to limit losses, which pushes the share price higher in a “short squeeze.” That is the main topic of discussion on the WallStreetBets subreddit this week.
The short interest appears to be the main driver of buying activity.
The only other news surrounding Hertz this week is a price target cut from Susquehanna.
Susquehanna analyst Christopher Stathoulopoulos maintained a Neutral rating on Monday, but cut the price target to $2.50 from $5.50.
The broader analyst community carries a consensus Hold rating on the stock with an average price target of $3, according to analyst data.
Last Week’s Earnings Report Sparked Retail Buying Hertz posted second-quarter revenue of $2.4 billion last week, beating the $2.28 billion estimate and growing 10% from a year earlier.
The adjusted loss of 11 cents per share was significantly better than the 24 cent loss analysts had expected.
If Hertz can sustain this trajectory, the results would represent a meaningful step forward in the company’s ongoing turnaround.
Revenue per day also hit a second-quarter record, excluding pandemic-era comparisons from 2022, a milestone the company said reflects continued progress in its transformation strategy.
HTZ Shares Are Soaring HTZ Price Action: Hertz shares were up 24.53% at $2.64 at the time of publication on Tuesday, according to Pro.
Read Also: S&P 500 Eyes Records, Fed Hike Odds Near 51% Before CPI: Stock Market Today Image: Ricochet64/Shutterstock