Optimism about Hertz Global Holdings, Inc. (NYSE:HTZ) long-term gains continues to increase in the wake of Carl Icahn‘s Icahn Capital Lp increasing his stake in the company from 8.7% to 10.8%. CNBC’s Dominic Chu reports that an SEC filing indicates that Icahn now owns 49.3 million shares in Hertz valued at $1.24 billion at current market rates up from 38 million shares.
Newly appointed CEO, John Tague, has also reiterated his belief on the renting car services company by essentially investing $2 million of his own money. Karen Finerman believes Hertz Global Holdings, Inc. (NYSE:HTZ) needs to carry out an aggressive restructuring at the back of appointing a new CEO, who is expected to do a lot if growth is to be achieved going forward.
“He has got some work to do but in the longer term you’ve got an industry that has consolidated, and you’ve got a real opportunity for some big price moves,” said Mrs. Finerman.
Carl Icahn was already the largest shareholder at Hertz Global Holdings, Inc. (NYSE:HTZ) having been pushing for management changes in the wake of the appointment of a new CEO. The company is entangled in an accounting error scandal that dates back to 2011 that forced it to restate earnings of the past three fiscal years with former CEO, Mark Frissora being forced to step down.
The accounting error scandal seems to be cooling off seen by Hertz Global Holdings, Inc. (NYSE:HTZ) registering impressive gains over the past weeks. Management changes saw Tague outpace Dollar Thrifty CEO, Scott Thompson, who was also thought to be a favorite for the post after the resignation of Frissora
Icahn bolstering his stakes in the company may in way acts as an entry point to other investors who may be eyeing the stock as a possible investment opportunity. Finerman notes the fact that Hertz Global Holdings, Inc. (NYSE:HTZ) has not spiked by big percentages on the latest news, may signal a possible entry point as Icahn and Tague continue to air positive sentiments on the stock’s long-term prospects.
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