Herc (NYSE:HRI) Shares Gap Down Following Weak Earnings

Herc Holdings Inc. (NYSE:HRI - Get Free Report) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $111.50, but opened at $102.99. Herc shares last traded at $101.60, with a volume of 51,330 shares trading hands.

The transportation company reported $1.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.51 by ($1.21). Herc had a return on equity of 26.48% and a net margin of 5.91%. The business had revenue of $861.00 million for the quarter, compared to analyst estimates of $841.67 million. During the same period last year, the business earned $2.36 EPS.

Herc Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 4th. Shareholders of record on Tuesday, February 18th were paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 2.58%. The ex-dividend date was Tuesday, February 18th. This is a positive change from Herc's previous quarterly dividend of $0.67. Herc's dividend payout ratio (DPR) is 37.79%.

Analysts Set New Price Targets

Several equities analysts have recently commented on HRI shares. The Goldman Sachs Group restated a "buy" rating and issued a $146.00 price objective (down from $171.00) on shares of Herc in a report on Tuesday. Robert W. Baird decreased their price target on Herc from $129.00 to $110.00 and set a "neutral" rating on the stock in a research note on Wednesday. Citigroup dropped their price objective on Herc from $165.00 to $140.00 and set a "buy" rating for the company in a research note on Tuesday, April 8th. Barclays decreased their target price on Herc from $250.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday. Finally, JPMorgan Chase & Co. cut their price target on shares of Herc from $225.00 to $140.00 and set a "neutral" rating on the stock in a research note on Monday, April 14th. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, Herc has a consensus rating of "Moderate Buy" and a consensus target price of $139.20.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of HRI. Vanguard Group Inc. grew its position in shares of Herc by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 3,066,892 shares of the transportation company's stock worth $580,655,000 after buying an additional 27,578 shares in the last quarter. Capital World Investors grew its holdings in Herc by 435.8% during the 4th quarter. Capital World Investors now owns 1,419,015 shares of the transportation company's stock worth $268,662,000 after acquiring an additional 1,154,182 shares in the last quarter. FMR LLC increased its position in shares of Herc by 69.0% in the 4th quarter. FMR LLC now owns 1,245,168 shares of the transportation company's stock valued at $235,748,000 after purchasing an additional 508,359 shares during the last quarter. Norges Bank acquired a new stake in shares of Herc in the 4th quarter valued at $183,786,000. Finally, American Century Companies Inc. lifted its position in shares of Herc by 0.8% during the 4th quarter. American Century Companies Inc. now owns 812,270 shares of the transportation company's stock worth $153,787,000 after purchasing an additional 6,777 shares during the last quarter. 93.11% of the stock is owned by institutional investors and hedge funds.

Herc Trading Down 2.8 %

The stock has a market cap of $3.09 billion, a price-to-earnings ratio of 14.63, a P/E/G ratio of 1.61 and a beta of 1.93. The business's 50 day moving average is $130.80 and its 200 day moving average is $178.38. The company has a debt-to-equity ratio of 2.99, a current ratio of 1.38 and a quick ratio of 1.38.

About Herc

Herc Holdings Inc, together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment.