In a recent transaction, Christian J. Cunningham, the Senior Vice President and Chief Human Resources Officer of Herc Holdings Inc. (NYSE:HRI), sold 4,350 shares of the company's common stock. The shares were sold at a price of $242.28 each, amounting to a total transaction value of approximately $1,053,918. Following this sale, Cunningham retains ownership of 48,111 shares in the company. Herc Holdings, based in Bonita Springs, Florida, is a prominent player in the equipment rental and leasing industry.
In other recent news, Herc Holdings reported noteworthy third-quarter results, with record revenue of $965 million, marking a 6% increase year-over-year. However, the company's earnings per share fell short of expectations, reporting an adjusted EPS of $4.35, below the projected $4.55. In addition, the equipment rental segment, a significant revenue contributor, saw a 13% increase to $866 million compared to the same period last year.
In response to these developments, Baird maintained a Neutral rating on Herc Holdings but raised the price target from $165 to $267, adding the company's stock to its Fresh Pick list. BofA Securities also adjusted its outlook, raising the price target to $150 from $125 while maintaining an Underperform rating.
Herc Holdings continues to make strategic moves, with its aggressive mergers and acquisitions strategy, which has seen $567 million in expenditures to date, contributing to an updated 2024 revenue growth forecast of between 9.5% and 11%, up from the previously estimated 7% to 10%. Despite the revenue growth, the company's profitability was impacted by higher operating costs and interest expenses.
The company's adjusted EBITDA forecast for 2024 remains at $1.55 billion to $1.6 billion. These are the recent developments impacting Herc Holdings Inc.
InvestingPro Insights
The recent insider sale by Christian J. Cunningham comes at a time when Herc Holdings Inc. (NYSE:HRI) is experiencing strong market performance. According to InvestingPro data, HRI's stock has shown impressive returns, with a 89.22% price total return over the past year and a 34.4% return in the last month alone. This robust performance is reflected in the company's market capitalization, which currently stands at $6.8 billion.
Despite the recent insider sale, HRI's financial metrics paint a picture of a company with solid fundamentals. The company reported a revenue of $3.45 billion in the last twelve months as of Q3 2024, with a healthy gross profit margin of 37.69%. Moreover, HRI's operating income margin of 20.44% suggests efficient management of operating expenses.
InvestingPro Tips highlight that HRI has raised its dividend for three consecutive years, which may be attractive to income-focused investors. However, it's worth noting that the stock's RSI suggests it may be in overbought territory, which could be a factor in the insider's decision to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for HRI, providing a deeper understanding of the company's financial health and market position. These insights can be valuable for those looking to make informed investment decisions in the equipment rental sector.
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