Herc (NYSE:HRI) Shares Gap Down – Here’s What Happened

Herc Holdings Inc. (NYSE:HRI)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $173.12, but opened at $158.00. Herc shares last traded at $155.5660, with a volume of 212,927 shares trading hands.

Herc News Summary

Here are the key news stories impacting Herc this week:

• Positive Sentiment: EPS topped expectations — Herc reported $2.07 EPS vs. consensus ~ $1.84–$1.87, which helped limit downside and shows operating profits beat consensus assumptions. Earnings Top Estimates
• Positive Sentiment: Management highlighted 2025 as a pivotal year after closing the industry‑leading acquisition and issued full‑year 2026 guidance, signaling confidence in integration and long‑term value creation. Full Year 2025 Results & 2026 Guidance
• Positive Sentiment: Revenue grew materially year‑over‑year (+27.1%), reflecting the contribution from the recent acquisition and underlying demand recovery in equipment rental. Earnings Release / Transcript
• Neutral Sentiment: Transcripts and slide deck are available — useful for investors who want detail on capital allocation, integration milestones and guidance assumptions before trading. Q4 2025 Earnings Transcript
• Neutral Sentiment: Analyst presentation / earnings call materials provide forward commentary but may take time to translate into revisions — watch the slides and call for deeper guidance detail. Earnings Call Presentation
• Negative Sentiment: Revenue missed estimates — $1.21B reported vs. ~$1.25B expected, which triggered concern that margin leverage and organic demand aren’t yet fully offsetting acquisition-related costs. Revenue Miss Coverage
• Negative Sentiment: EPS declined sharply year‑over‑year (from $3.58 to $2.07), raising questions about one‑time items, integration costs or mix shifts that reduced profitability compared with the prior year. YoY EPS Drop
• Negative Sentiment: Margin and leverage concerns persist — the company reported a negative net margin and carries elevated debt (highlighted in the release and analyst notes), which makes investors cautious while integration‑related cash needs continue. Earnings Snapshot

Analyst Upgrades and Downgrades

A number of research firms recently commented on HRI. JPMorgan Chase & Co. lifted their target price on shares of Herc from $150.00 to $165.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Weiss Ratings reissued a “sell (d+)” rating on shares of Herc in a report on Thursday, January 22nd. Wall Street Zen upgraded Herc from a “sell” rating to a “hold” rating in a research note on Sunday, November 2nd. Citigroup lifted their price target on Herc from $170.00 to $195.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Finally, Wells Fargo & Company raised their price objective on Herc from $170.00 to $189.00 and gave the stock an “overweight” rating in a research note on Friday, January 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Herc presently has an average rating of “Moderate Buy” and a consensus target price of $181.43.

Herc Stock Performance

The stock has a market capitalization of $5.07 billion, a price-to-earnings ratio of -60.47, a PEG ratio of 1.61 and a beta of 1.77. The company has a debt-to-equity ratio of 4.28, a quick ratio of 1.22 and a current ratio of 1.22. The firm’s 50 day moving average is $159.92 and its 200-day moving average is $139.57.

Herc (NYSE:HRI) last posted its earnings results on Tuesday, February 17th. The transportation company reported $2.07 EPS for the quarter, beating analysts’ consensus estimates of $1.87 by $0.20. The firm had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.25 billion. Herc had a positive return on equity of 16.32% and a negative net margin of 1.68%.The company’s quarterly revenue was up 27.1% on a year-over-year basis. During the same period last year, the firm earned $3.58 EPS. Analysts forecast that Herc Holdings Inc. will post 12.84 earnings per share for the current fiscal year.

Herc Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Investors of record on Wednesday, February 18th will be issued a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Wednesday, February 18th. Herc’s payout ratio is presently -111.11%.

Institutional Investors Weigh In On Herc

Several institutional investors have recently bought and sold shares of the company. Hantz Financial Services Inc. lifted its position in shares of Herc by 342.1% in the fourth quarter. Hantz Financial Services Inc. now owns 168 shares of the transportation company’s stock valued at $25,000 after acquiring an additional 130 shares in the last quarter. Harbor Capital Advisors Inc. boosted its position in Herc by 53.1% during the third quarter. Harbor Capital Advisors Inc. now owns 248 shares of the transportation company’s stock worth $29,000 after acquiring an additional 86 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in Herc in the 3rd quarter valued at about $31,000. Advisory Services Network LLC acquired a new position in shares of Herc during the 3rd quarter worth approximately $35,000. Finally, University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Herc in the second quarter valued at approximately $36,000. 93.11% of the stock is currently owned by institutional investors and hedge funds.

Herc Company Profile

Herc Holdings Inc (NYSE: HRI) operates as a leading equipment rental provider in North America, offering a wide range of machinery and support services to construction, industrial, government and event sectors. The company’s fleet includes aerial work platforms, earthmoving equipment, material handling solutions, power generation units and specialty tools, enabling clients to scale their operations without the capital expense of ownership. In addition to basic machinery rentals, Herc provides value-added services such as equipment maintenance, on-site safety training and project consulting to help customers optimize productivity and maintain compliance with industry standards.

Founded as part of Hertz Global Holdings, the equipment rental business was spun off as an independent public company in early 2016.