Hertz News: HTZ Stock Rockets 31% on Buyout Speculation

Hertz (NYSE:HTZ) is in the news Wednesday as speculation about a buyout has HTZ stock heading higher.

Whether It's Uncertainty or Speculation Ignore Any Moves in Hertz Stock
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While there no concrete news yet that could save Hertz from bankruptcy, Jefferies analyst Hamzah Mazari suggests an idea that could benefit it. The analyst believes it’s possible that CarMax (NYSE:KMX) or AutoNation (NYSE:AN) may be HTZ’s saving grace.

How exactly could the used car sellers benefit Hertz? Either company could choose to buy up a large chunk of vehicles making up the rental company’s fleet. Doing so could provide it with capital to continue operations.

This isn’t to say that CarMax or AutoNation will do so, but a transaction like that could also benefit them. One of the biggest reasons they may want to help Hertz is to keep it from offloading its entire fleet of cars. That could flood the used-car market and hurt their own businesses, reports The Motley Fool.

The most recent Hertz news is part of its continuing bankruptcy saga. As is expected, it saw a major drop in its stock price when filing for bankruptcy. Despite that, news of travel reopening after had investors pinning hope on the company, which saw shares jump again earlier this month.

While Hertz has seen its stock surge higher at certain points, it always seems to come crashing back down. The bankruptcy, as well as a possible delisting of the stock, makes it hard to recommend anyone pick up HTZ shares at this point.

HTZ stock was up 30.8% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/06/hertz-speculation-news-boosts-htz-stock/.

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