Hertz Global Holdings, Inc (NYSE:HTZ) shares have fallen another 3% today after yesterday’s 9% plunge. Due to the decline, Hertz Global Holdings, Inc (NYSE:HTZ) now trades well below $20 per share. Shares of Hertz likely fell today due to data showing that used car sales have been soft, with prices for vehicles up to 8 years old inching lower by 1.6% sequentially. Analysts were expecting a 1% increase instead. If the used car market is soft, Hertz might not realize as much for the cars it eventually sells and the resale value of its fleet isn’t nearly quite as high.
At this point, we would be on the sidelines. Although the long thesis that Hertz Global Holdings, Inc (NYSE:HTZ) is undervalued and that Carl Icahn’s Icahn Capital LP could shake things up is true, the company is currently trending lower and it’s hard to see any sure-fire catalysts that can send prices higher as of yet. Hertz has also not participated in the bull market, with shares languishing due to several disappointing earnings reports. Although the company was formerly a strong free cash flow generator, the company also has a considerable amount of debt and faces competition from growing technologies such as the ride sharing app Uber and driver-less cars. If Hertz’s next earnings report beats expectations or if Icahn does more, we might change our mind however.
What Does Smart Money Sentiment Say?
Of the 742 elite funds we track, 34 funds owned $1.01 billion of Hertz Global Holdings, Inc (NYSE:HTZ) and accounted for 56.40% of the float on December 31, versus 43 funds and $1.55 billion respectively on September 30.