In recent transactions disclosed by Herc Holdings Inc. (NYSE:HRI), Mark Humphrey, the company's Senior Vice President and Chief Financial Officer, sold a total of 2,625 shares of common stock. The sales, which took place on November 1, 2024, were executed at prices ranging from $209.97 to $210.74 per share, amounting to a total transaction value of $551,488.
Following these transactions, Humphrey holds 24,160 shares directly. The sales were reported in two separate transactions, with 2,213 shares sold at a weighted average price of $209.97 and an additional 412 shares sold at a weighted average price of $210.74.
These transactions reflect part of Humphrey's ongoing management of his investment in the company, which operates in the miscellaneous equipment rental and leasing industry.
In other recent news, Herc Holdings reported record third-quarter revenue of $965 million, marking a 6% year-over-year increase. However, the company fell short of earnings per share estimates with an adjusted EPS of $4.35, below the expected $4.55. Despite this, Baird maintained a Neutral rating on Herc Holdings, significantly increasing the price target from $165.00 to $267.00. This was largely due to the company's reaffirmation of its EBITDA guidance, supported by recent mergers and acquisitions.
Meanwhile, BofA Securities raised its price target to $150 from $125, while maintaining an Underperform rating on the stock. This revision followed Herc's robust third-quarter results, which surpassed market expectations. Herc Holdings has also updated its 2024 guidance, now forecasting revenue growth between 9.5% and 11%, up from the previously estimated 7% to 10%.
However, the company's adjusted EBITDA forecast for 2024 remains at $1.55 billion to $1.6 billion. These are the recent developments impacting Herc Holdings Inc. These facts reflect the current state of affairs, with no speculation or subjective assessment.
InvestingPro Insights
The recent stock sales by Herc Holdings Inc.'s CFO Mark Humphrey come at a time when the company's stock is showing strong performance. According to InvestingPro data, Herc Holdings has seen a remarkable 70.18% price total return over the past year, and is currently trading near its 52-week high, with the price at 99.81% of its highest point.
This robust performance is reflected in several InvestingPro Tips. For instance, one tip notes that Herc Holdings has "raised its dividend for 3 consecutive years," indicating a commitment to shareholder returns. Additionally, the company has shown a "strong return over the last month" and "strong return over the last three months," aligning with the timing of Humphrey's stock sales.
However, investors should be aware that the stock's RSI suggests it may be in overbought territory, and it's trading at a high P/E ratio relative to near-term earnings growth. The current P/E ratio stands at 17.48, while the PEG ratio is notably high at 36.53, suggesting the stock might be overvalued relative to its growth prospects.
Despite these valuation concerns, Herc Holdings maintains solid financial fundamentals. The company boasts a healthy gross profit margin of 37.69% and an operating income margin of 20.44% for the last twelve months as of Q3 2024. Revenue growth stands at 6.55% over the same period, indicating steady expansion.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Herc Holdings, providing deeper insights into the company's financial health and market position.
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