Home / Business and Economy / Hertz Faces Record Short Interest Amid Downturn
Hertz Faces Record Short Interest Amid Downturn
7 Jul
Summary
- Short interest in Hertz stock has reached an all-time high.
- The company's stock has fallen approximately 60% in under two weeks.
- Concerns over vehicle depreciation and used car market weakness impact HTZ.
Hertz Global Holdings (HTZ) has seen its stock price hit record lows, with bearish investors rapidly increasing their wagers against the company. As of Thursday's close, over 56% of Hertz's float was borrowed by traders anticipating further price declines, a surge attributed to a disappointing preliminary second-quarter earnings report and a capital-raising effort. The rental car company recently issued a profit warning and slashed its second-quarter earnings forecast, citing unexpected weakness in the used car market. This news sent the stock plunging 41% in a single session, continuing a downward trend that has seen its value drop approximately 60% in less than two weeks. Additionally, Hertz completed a $350 million secured exchangeable notes offering to bolster liquidity. Concerns about rising vehicle depreciation costs and the struggling used-car market are also contributing factors to the ongoing sell-off.
