On October 24, 2024, Michael A. Kelly, a director at Herc Holdings Inc. (NYSE:HRI), sold 3,880 shares of common stock. The shares were sold at a weighted average price of $208.83, resulting in a total transaction value of approximately $810,260. Following this sale, Kelly holds 13,774 shares indirectly through The Michael A. Kelly and Karen E. Kelly Living Trust, and 834 shares directly. The sale was conducted within a price range of $208.59 to $209.43 per share.
In other recent news, Herc Holdings reported record third-quarter revenue of $965 million, marking a 6% year-over-year increase, but fell short of earnings per share estimates with an adjusted EPS of $4.35, below the expected $4.55. The equipment rental segment, a significant revenue contributor, saw a 13% increase to $866 million compared to the same period last year. Despite these gains, higher operating costs and interest expenses impacted profitability. The company has updated its 2024 guidance, now forecasting revenue growth between 9.5% and 11%, up from the previously estimated 7% to 10%. This outlook is partly due to the company's aggressive mergers and acquisitions strategy, which has seen $567 million in expenditures to date. Analysts at Baird have added Herc Holdings to their 'Fresh Pick' list and raised the price target from $165.00 to $267.00, while BofA Securities has increased their price target to $150 from $125, maintaining an Underperform rating. These are the recent developments impacting Herc Holdings Inc.
InvestingPro Insights
The recent insider sale by Michael A. Kelly at Herc Holdings Inc. (NYSE:HRI) comes at a time when the company's stock is showing strong performance across multiple timeframes. According to InvestingPro data, HRI has demonstrated impressive returns, with a 21.62% increase in the past week and a substantial 108.48% gain over the last year. This robust performance has pushed the stock to trade near its 52-week high, with the current price at 97.76% of that peak.
InvestingPro Tips highlight that HRI has raised its dividend for three consecutive years, which may be attractive to income-focused investors. The company's current dividend yield stands at 1.27%, with a dividend growth rate of 5.14% over the last twelve months. This consistent dividend increase, coupled with the stock's strong price appreciation, suggests a balanced approach to shareholder returns.
However, investors should note that the stock's RSI indicates it may be in overbought territory, and it's trading at a high Price/Book multiple of 4.03. These factors, along with the stock's high P/E ratio of 17.11 relative to near-term earnings growth, suggest that careful consideration is warranted for potential investors.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for HRI, providing a more comprehensive view of the company's financial health and market position.
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