9 Stocks on Jim Cramer’s Radar

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

Number of Hedge Fund Holders: 35

When a caller mentioned that investor Bill Ackman started a sizeable position in Hertz Global Holdings, Inc. (NASDAQ:HTZ), Cramer said:

“Okay, well, you know, I don’t know what Bill Ackman’s going to do because it’s, I don’t know him, and all I can tell you is that the stock’s had a very big run. It’s not a great company. I’ve seen great people befell by the stock. So I think you could take the money and run and be, or at least take out your cost basis. How about that? And let the rest ride. That would be the most prudent thing to do.”

Hertz Global (NASDAQ:HTZ) is a vehicle rental company offering services under the Hertz, Dollar, and Thrifty brands. It also sells vehicles and provides additional services through various locations worldwide. On April 17, BofA highlighted that after Pershing Square disclosed in a Form 13F that it held 4.1% of HTZ shares at the end of 2024, CNBC later reported that the firm had increased its stake to 19.8% through shares and swaps.

BofA suggested that Pershing Square’s investment could provide much-needed capital for the company. If the rise in Hertz Global’s (NASDAQ:HTZ) shares holds, it could give the company more options to tap into equity markets. However, BofA still believes the company will need to raise over $500 million in capital, given its forecasted free cash flow usage of around $920 million in 2025 and $300 million in 2026. The firm maintained an Underperform rating on Hertz with a price target of $2.70.