Hertz's Board of Directors approved a $2 billion share repurchase program
The shares of Hertz Global Holdings Inc (NASDAQ:HTZ) are up 5% at $18.10 this morning, following news that the company's Board of Directors approved a $2 billion share repurchase program. This new buyback program is in addition to the preexisting $2 billion buyback program established in November 2021.
The equity has been in selloff mode since failing at the 40-day moving average, though it looks to have found a floor at the $16.50 mark. In 2022, HTZ has lost 31%, though it's added nearly 10% in the past nine months.
Analysts have been incredibly bullish over Hertz stock, with all four in coverage calling it a "strong buy." Plus the 12-month consensus price target of $28.71 is a 66.5% premium to last night's close.
Short sellers, meanwhile, have been coming in in droves. Short interest rose 17.8% in the last reporting period, and now makes up 5.8% of the stock's available float, or a little under three days' worth of pent-up buying power.
it's worth noting that HTZ options can be had at a relative bargain right now. This is per the stock's Schaeffer's Volatility Index (SVI) of 64%, which sits higher than just 14% of readings from the past year. In other words, options traders have been pricing in comparatively low volatility expectations at the moment.