Categories AlphaGraphs, Consumer, Earnings

Hertz Global stock tumbles 13% as Carl Icahn cuts holding

Florida-based rental company Hertz Global (HTZ) saw its shares plunge 13% on Tuesday after it emerged that one of its primary backers is selling his stake.

According to a Securities and Exchange Commission (SEC) filing, billionaire investor Carl Icahn has reduced his stake in the company from over 35% to around 29%. Icahn’s investment firms – Icahn Partners LP, High River Limited Partnership and Icahn Partners Master Fund LP – together sold about 5 million outstanding shares of Hertz on Monday.

Photo by Nabeel Syed on Unsplash

Icahn currently holds over 24.2 million shares of HTZ.

The 83-year-old businessman had more-than-doubled his stake in Hertz Global two years back when the rental company was facing a slew of skeptic remarks from analysts and market watchers due to its poor performance as well as an accounting scandal. A month before this, Icahn had installed Kathryn Marinello as the CEO of the company to steady the ship.

HTZ stock is up 42% since the start of this year.

Hertz-Global-Holdings-stock-performance-since-2017

Hertz has not responded to a request for management comment on the stock sale. The story would be updated once we get a response.

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Hertz Global had last week posted narrower-than-expected fourth quarter results and higher revenues.  The company posted a loss of 55 cents per share, compared to 90 cents expected by analysts. The results had sent the stock up 15% during pre-market trading that day.

CEO Marinallo said, following the results, “We finished 2018 strong, delivering improvements in rental price, volume, utilization and fleet costs for the full year as a result of targeted strategies, disciplined execution and well-placed investments.”

“We have tremendous momentum as we move into 2019 and will focus on continued revenue growth as well as productivity to drive margin expansion,” she had added.

 

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