According to 13D filings with the U.S. Securities and Exchange Commission, activist investor Carl Icahn made a move into Hertz Global Holdings, Inc. (NYSE:HTZ). The 13D document showed that Icahn now owns a 8.48% stake in Hertz, which is valued at $1.2 billion. Following Icahn’s move in Hertz, Fast Money trader Karen Finerman discussed on CNBC how to read 13D filings and what could be some of the reasons behind Icahn’s recent acquisition.
The move by Icahn into Hertz Global Holdings, Inc. (NYSE:HTZ) appear to have been also motivated by a desire to acquire the stock while it is undervalued, especially following the accounting troubles that the rental car company has had to deal with in the recent times. However, his move can still offer great investment lessons for those who know how to read 13D filings, especially where one needs to understand the important reason behind the investment move by the activist investor – Icahn.
“[…] I want to know when did he buy this stock. On the front page of a 13D it says the date that he took an action that triggered this filing. [...] August 12, he went over 5%. He has 10 days to file. He has done nothing wrong by not filing till now, that is perfectly fine […],” stated Finerman.
She said that 13D usually bear so much information that can be useful to an investor. She cited things like one being able to know how much stock Icahn, for instance, now owns in Hertz Global Holdings, Inc. (NYSE:HTZ) if all is put together according to the different filings listed in the document.
”[…] He is very frustrated with the accounting issues, management – maybe, he wants to put some directors on the board. For Carl that is not the most aggressive 13D we’ve ever seen. If you think he would put Hertz up for sale now, I think that is very unlikely because they don’t have their accounting in place. Nobody wants to buy before they know exactly what they are buying [...],” she observed while ruling out the possibility of Icahn pushing Hertz Global Holdings, Inc. (NYSE:HTZ) towards a sale.