Herc (NYSE:HRI) Shares Gap Up After Better-Than-Expected Earnings

Herc Holdings Inc. (NYSE:HRI) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $127.13, but opened at $138.90. Herc shares last traded at $143.12, with a volume of 298,213 shares traded.

The transportation company reported $3.91 EPS for the quarter, beating analysts’ consensus estimates of $2.92 by $0.99. Herc had a net margin of 1.01% and a return on equity of 10.33%. The business had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.35 billion. During the same quarter in the prior year, the firm posted $2.22 earnings per share. The business’s quarterly revenue was up 4.6% compared to the same quarter last year.

Herc Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd were paid a dividend of $0.70 per share. The ex-dividend date was Wednesday, September 2nd. This represents a $2.80 annualized dividend and a yield of 1.9%. Herc’s dividend payout ratio (DPR) is 190.48%.

Key Headlines Impacting Herc

Here are the key news stories impacting Herc this week:

• Positive Sentiment: Third-quarter earnings beat estimates. Herc reported adjusted earnings of $3.91 per share, well above the $3.08 Zacks consensus and the $2.92 estimate cited by other coverage. EPS also rose from $2.22 a year earlier, indicating significant year-over-year earnings growth. Herc Holdings Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Revenue reached a record $1.36 billion. Quarterly revenue increased approximately 4.6% to 5% year over year and slightly exceeded the $1.35 billion analyst expectation. Equipment rental revenue grew 12% on an average fleet investment base, reflecting stronger customer demand and rental activity. Herc Holdings Reports Third Quarter 2026 Results
• Neutral Sentiment: CEO succession was announced. President Aaron Birnbaum will succeed Larry Silber as CEO on January 1, 2027, while continuing as president and joining the board. The planned transition provides continuity, but investors may watch for changes in strategy, capital allocation and operating execution. Herc Holdings Announces CEO Succession Plan
• Negative Sentiment: Full-year guidance remains a concern. Herc increased its 2026 guidance, but reports indicate the revised full-year sales outlook is still materially below analyst expectations. That shortfall may offset some of the quarterly earnings strength and raise questions about demand, fleet utilization and future growth.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Zacks Research upgraded Herc from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 14th. Wells Fargo & Company reduced their price target on shares of Herc from $218.00 to $176.00 and set an “overweight” rating for the company in a research report on Thursday, October 8th. BNP Paribas Exane raised their price objective on shares of Herc from $160.00 to $165.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. Citigroup decreased their price objective on shares of Herc from $175.00 to $150.00 and set a “buy” rating for the company in a report on Monday, October 12th. Finally, KeyCorp lifted their price objective on shares of Herc from $165.00 to $185.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $174.86.

Institutional Trading of Herc

Institutional investors have recently modified their holdings of the business. Bank of New York Mellon Corp bought a new position in Herc in the 2nd quarter worth approximately $86,054,000. Cooper Creek Partners Management LLC purchased a new stake in shares of Herc during the first quarter worth $21,866,000. Dimensional Fund Advisors LP lifted its position in shares of Herc by 17.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,164,022 shares of the transportation company’s stock worth $115,872,000 after acquiring an additional 170,189 shares in the last quarter. Penn Capital Management Company LLC purchased a new stake in shares of Herc during the second quarter worth $21,070,000. Finally, Bank of America Corp DE boosted its holdings in shares of Herc by 147.8% in the first quarter. Bank of America Corp DE now owns 235,320 shares of the transportation company’s stock worth $23,426,000 after acquiring an additional 140,355 shares during the period. 93.11% of the stock is currently owned by hedge funds and other institutional investors.

Herc Stock Performance

The company has a 50-day moving average price of $140.38 and a two-hundred day moving average price of $139.59. The company has a market capitalization of $4.83 billion, a PE ratio of 98.54 and a beta of 2.04. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 4.22.

About Herc

Herc Holdings Inc, operating primarily through the Herc Rentals brand, is an equipment rental supplier serving construction, industrial, commercial and government customers. The company provides access to equipment and related services intended to help customers complete projects without purchasing and maintaining their own fleets.

Its rental fleet includes aerial work platforms, earthmoving equipment, material-handling equipment, trucks and trailers, power generation and climate-control equipment, pumps, and general tools.