- Hertz (HTZ) stock is gaining today on share repurchase news.
- The Board has approved a $2 billion stock buyback plan.
- The has its total repurchase amount sitting at $2.2 billion.
Hertz (NASDAQ:HTZ) stock is gaining on Wednesday after the car rental company revealed a new share repurchase plan.
The Board of Directors at Hertz has approved a $2 billion stock repurchase plan. This is in addition to its other $2 billion share repurchase plan from November 2021. It’s worth mentioning that the November plan only has $200 million remaining.
A new stock repurchase plan shows investors that Hertz is confident in its business. This comes after it bought 88 million shares of HTZ stock through the other share repurchase plan.
Hertz said that it will repurchase shares at the discretion of management. It will do so through open-market transactions, privately negotiated transactions, accelerated share repurchases and other approved methods.
Stephen Scherr, CEO of Hertz, said the following in the share repurchase announcement: “We remain committed to our capital allocation strategy that utilizes organic cash flows and appropriate leverage to invest in technology, modernize our fleet, and return capital to shareholders.”
It’s worth noting that the share buyback plan makes up a hefty portion of the company’s market capitalization. It’s roughly a fourth of the $7.6 billion market cap the car rental company has today.
HTZ stock is up 7.2% as of Wednesday morning. However, the stock is still down 25.3% since the start of the year.
Investors seeking out more stock market news for Wednesday are in the right place!
InvestorPlace has all of the hottest stock market coverage that traders need to know about for today! That includes this morning’s premarket stock movers, an event from Nio (NYSE:NIO), as well as what’s happening with shares of Digital World Acquisition Corp (NASDAQ:DWAC) stock. You can read up on all of that news at the following links below!
More Stock Market News for Wednesday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
