Hertz Shares Fall After Ackman’s Pershing Sells Stake in Firm
Hertz Global Holdings Inc. shares tumbled as Pershing Square Inc.'s chief investment officer said the asset management firm has sold its stake in the car-rental company. The stock dropped as much as 13%…
Hertz Global Holdings Inc. shares tumbled as Pershing Square Inc.’s chief investment officer said the asset management firm has sold its stake in the car-rental company.
The stock dropped as much as 13%, reversing earlier gains, after Ryan Israel said in a call posted on social media platform X that Pershing lost confidence in Hertz’s management after the firm announced a funding plan that “we did not think was necessary,” said Israel. “It’s unlike anything we had really seen a company do before.”
Pershing, helmed by billionaire Bill Ackman, held a 4.3% stake in Hertz as of March 31, down from 19.8% last spring, according to data compiled by Bloomberg. Pershing reported second-quarter results after the bell on Wednesday.
Hertz’s slide snaps an 85% run-up for the stock over just six sessions as of Wednesday’s close. The bulk of that rally followed the release of the Florida-based firm’s second-quarter earnings, which featured losses that were narrower than feared. Before the stretch of gains began, Hertz had plunged 70% since late June to record an all-time low of $1.51 per share on Aug. 4.
Hertz’s slide snaps an 85% run-up for the stock over just six sessions as of Wednesday’s close.
Hertz, which declared bankruptcy in 2020 before re-listing in 2021, has seen its stock swing wildly over the course of 2026. Earlier this year, shares surged as long lines at US airports bolstered rental-car demand and a short squeeze sent peer Avis Budget Group Inc.’s stock sky-high. But Hertz itself then cratered, suffering its worst day since it re-listed as the company warned of weakness in the used-vehicle market and announced a simultaneous stock sale and bond deal.
“It certainly hurts the turnaround story to see a savvy investor like Ackman sell his position,” said Eric Diton, president and managing director for The Wealth Alliance.
The day before reports circulated regarding Pershing’s near-20% stake in Hertz last April, shares closed at $3.65. They ended Wednesday’s session at $2.80. Hertz is highly levered in a capital-intensive business, according Diton. “Volatility is here to stay,” he said.
