The reason for Hertz's bounce-back isn't clear
Hertz Global Holdings Inc (NYSE:HTZ) seems to be skipping out on the selloff the car rental sector is currently experiencing as restrictions put in place amid coronavirus concerns severely limit travel. The stock is now up 17.46% at $3.97, though the reason for this massive pop is not quite clear. This surge comes just one day after the equity hit an all-time low of $3.18, while the equity now appears to be bouncing off the $3.50 region.
Among the brokerage bunch, sentiment is somewhat cautious. Of the six in coverage, only two consider HTZ a "strong buy." Meanwhile, the consensus 12-month price target of $18.14 is nearly quadruple current levels.
Short sellers have been piling on Hertz. Short interest is up 19.3% in the last reporting period, and now makes up almost 13% of the stock's available float, or 5.7 days of trading at its average pace. It should be noted, however, that Hertz is sitting on the short-sale restricted (SSR) list today.