10 Most Promising Penny Stocks According to Hedge Funds

2. Hertz Global Holdings Inc. (NASDAQ:HTZ)

Share Price as of October 11: $3.15

Number of Hedge Fund Holders: 38

Hertz Global Holdings Inc. (NASDAQ:HTZ) is a global car rental company, operating rental car agencies in various countries, offering a range of vehicles for rent. It is known for its extensive network of locations, making it convenient for travelers to rent cars at airports, train stations, and other popular destinations.

Insiders at Hertz Global Holdings Inc. (NASDAQ:HTZ) have been buying shares in the past year, with CEO Wayne West making the biggest purchase. That single transaction was for US$1.1m worth of shares for $4.46 each. However, insider ownership remains modest at 1.5% of the company.

The company reported increased direct operating expenses due to non-recurring charges, insurance, personnel, collision, and damage costs in Q2 2024. Rental vehicles increased by 3%, but utilization dropped 2%, leading to overall revenue of $2.35 billion, down 3.45% year-over-year. Vehicle-related debt increased 4.3%, and non-vehicle debt surged 33%, resulting in an 11% rise in total debt to $17.4 billion.

The company’s Q2 revenue resulted from pricing discipline and managed capacity. DPU increased due to fleet refresh acceleration. It renegotiated national contracts and reduced maintenance and collision costs by 12%. SG&A decreased 9% year-over-year. It ended Q2 with $1.8 billion in liquidity and raised $1 billion in June. Vehicle debt increased due to ABS facility design.

The company is making progress on its strategic priorities, including strengthening its balance sheet, building a strong leadership team, and accelerating its fleet rotation. Hertz Global Holdings Inc. (NASDAQ:HTZ) is confident that these actions will improve its financial performance and create long-term shareholder value.