12 Cash-Rich Penny Stocks To Buy According To Hedge Funds

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3. Hertz Global Holdings, Inc. (NASDAQ:HTZ)

TTM Operating Cash Flow as of December 31, 2024: $2,224,000,000

Number of Hedge Fund Holders: 35

Share Price as of March 4: $4.04

Hertz Global Holdings, Inc. (NASDAQ:HTZ) is a Florida-based global vehicle rental company operating under the Hertz, Dollar, and Thrifty brands. It ranks 3rd on our list of the best cash-rich stocks. On December 5, 2024, Hertz announced a $500 million issuance of additional 12.625% First Lien Senior Secured Notes due 2029, increasing its total outstanding notes to $1.25 billion. The proceeds will be used to repay outstanding borrowings under its revolving credit facility, cover consent fees for amending debt terms, and support general corporate purposes.

Hertz Global Holdings, Inc. (NASDAQ:HTZ) recorded just over $2 billion in revenue for the fourth quarter and an adjusted EBITDA loss of $357 million. Revenue was down 7% from the same period last year because of lower rental volumes. However, the company stayed focused on efficiency, improving fleet utilization for the first time in 2024. Hertz also made progress on its fleet rotation, selling over 100,000 vehicles. As for cash flow, the company has a strong liquidity position with $1.8 billion available, about $500 million in cash and $1.2-$1.3 billion left on its credit line. While some cash burn is expected in the first half of 2025 due to fleet updates, Hertz expects to start generating cash again later in the year.

According to Insider Monkey’s fourth quarter database, 35 hedge funds were bullish on Hertz Global Holdings, Inc. (NASDAQ:HTZ), compared to 30 funds in the last quarter.

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