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Hertz Global (HTZ) Stock Gains on Share Repurchase Program

Hertz Global (HTZ) aims to reward its shareholders through a bulk buyback plan of up to $2 billion of its common shares.

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This story originally appeared on Zacks

Hertz Global Holdings HTZ, which completed its Chapter 11 restructuring process in June this year, unveiled a large stock repurchase program. The move is in line with its efforts to realign its finances after exiting bankruptcy protection, aided by strong demand for used cars during the pandemic.

- Zacks

The share-holder friendly plan, approved by Hertz’s board, naturally found favor with investors. As evidence, shares of HTZ gained 6% on Nov 29, closing the trading session at $25.30.

Per management, this car-rental entity, currently carrying a Zacks Rank #3 (Hold), intends to buy back up to $2 billion of its common shares. The repurchase program takes effect immediately and will initially comprise the remaining $200-million amount authorized for buyback at the time of Hertz’s NASDAQ listing earlier this month.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The announcement pertaining to the $2-billion buyback plan comes close on the heels of Hertz reaching a deal with the majority holder of its $1.5 billion of preferred stock. HTZ further announced that it aims to maintain a Net Corporate Leverage of not more than 1.5X.

Key Picks

Some better-ranked stocks in the Transportation sectorare as follows:

ArcBest Corporation ARCB currently sports a Zacks Rank #1 (Strong Buy). ARCB has a stellar earnings surprise history as its bottom line outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 27.4%.

Shares of ArcBest have rallied more than 100% so far this year. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB.

Knight-Swift Transportation Holdings KNX also flaunts a Zacks Rank of 1 at present. KNX’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 14%.

Shares of Knight-Swift have surged 39.1% so far this year. A strong performance of its logistics segment is aiding growth. Efforts to reward its shareholders also bode well.

Old Dominion Freight Line ODFL currently carries a Zacks Rank #2 (Buy). ODFL’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.2%.

Shares of Old Dominion have soared more than 83% so far this year. Improved freight market conditions are aiding ODFL. Efforts to reward its shareholders also augur well.



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Hertz Global Holdings, Inc. (HTZ): Free Stock Analysis Report

 

Old Dominion Freight Line, Inc. (ODFL): Free Stock Analysis Report

 

KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report

 

ArcBest Corporation (ARCB): Free Stock Analysis Report

 

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