Why Hertz (HTZ) Shares Are Trading Lower Today

What Happened?

Shares of global car rental company Hertz (NASDAQ:HTZ) fell 8.6% in the afternoon session after Northcoast Research downgraded the stock to Sell from Neutral and set a $5 price target. 

The downgrade highlighted several concerns about the company's financial health and market position. Analysts pointed to weakening pricing power and a strong used-car market, which hurts the resale values of Hertz's fleet. The firm's research also underscored Hertz's underlying financial struggles, noting the company posted a full-year 2025 net loss of $747 million.

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What Is The Market Telling Us

Hertz’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 15 days ago when the stock gained 10.2% on the news that data from Cox Automotive showed a significant jump in used car prices, reaching their highest levels since mid-2023. 

The Manheim Used Vehicle Value Index reported a 6.2% year-over-year increase for March 2026, a massive win for Hertz. Since a major expense for the company is the depreciation of its fleet, higher resale values mean Hertz loses much less money when it eventually sells its older vehicles. 

Adding to the momentum, major airport delays pushed more travelers toward car rentals. Staffing shortages at the Transportation Security Administration (TSA) caused massive security lines across the country, which typically encourages passengers to skip flights in favor of driving. This surge in demand raised optimism about the rental giant's recovery and ability to capture higher booking rates.

Hertz is up 25.8% since the beginning of the year, but at $6.57 per share, it is still trading 24.1% below its 52-week high of $8.65 from April 2025. Investors who bought $1,000 worth of Hertz’s shares at the IPO in June 2021 would now be looking at an investment worth $243.24.

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