Hertz Hits New Low Amid Forbearance Deal

The shares are still off over 85% since their February peak

Deputy Editor
May 5, 2020 at 10:08 AM
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Since investors caught wind that Hertz Global Holdings Inc (NYSE:HTZ) was looking at the possibility of filing for bankruptcy, the shares of the car rental name have been in a landslide. Coming into today HTZ was off over 35% month-over-month; however, reports this morning say Hertz has entered into forbearances and limited waivers with some of its corporate lenders and debt holders in an effort to avoid bankruptcy. Nevertheless, the stock is trading at fresh lows this morning, down 15.7% at $3.03, at last check. 

It has been a devastating year for HTZ, which was trading just atop the $20 region during its late-February peak. And while the security did try dragging itself out of penny stock territory late last month, its descending 30-day moving average has acted as a stiff ceiling on the charts. Since this aforementioned February high, HTZ has lost roughly 85%. 

Unsurprisingly, of the six analysts covering Hertz, three say "hold" and three say "strong sell." There's still room for price-target cuts, though. The consensus 12-month price target of $9.76 is nearly three times last night's close. 

Options players have also taken a pessimistic position. This is per HTZ's 10-day put/call volume ratio of 2.15 at the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 76th percentile of its annual range, implying a much healthier appetite for bearish bets of late. 

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