Hertz Stock Sinks on Disappointing Earnings Update

HTZ remains heavily shorted

Managing Editor
May 8, 2018 at 9:51 AM
facebook twitter linkedin

Car rental stock Hertz Global Holdings Inc (NYSE:HTZ) is trading significantly lower this morning, after the company reported a larger-than-expected first-quarter loss. Down 9% at $20.09 at last check, HTZ has fallen below the 200-day moving average, with the shares moving back into the red on a year-to-date basis.

Ahead of earnings, options traders had been heavily bearish in recent weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the security with a 10-day put/call volume ratio of 4.34, ranking in the 90th annual percentile. This suggests puts have been purchased over calls at a much faster-than-usual clip during the past two weeks.

HTZ is heavily shorted, even after short interest fell during the two recent reporting periods. At Hertz Global stock's average daily trading volume, it would take almost three weeks for the shorts to cover their bearish bets. 

Analysts have been skeptical of HTZ stock, with the stock's average 12-month price-target coming in at just $21.29. Furthermore, five of the six analysts following the stock have "hold" or "strong sell" recommendations in place.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners