Hertz Global Holdings Inc. shares are on track for their largest weekly decline since 2021 after the company warned of earnings pressure and announced plans for a stock issuance and bond offering. The stock fell 41% on Wednesday and an additional 11% on Thursday.
Hertz's significant stock decline and unusual financing strategy highlight investor concerns about the company's profitability and financial health, potentially impacting its ability to fund operations and fleet expansion.
Hertz Global Holdings Inc. stock is experiencing a record-setting decline, with shares plummeting 41% on Wednesday and falling an additional 11% on Thursday, putting the company on track for its largest weekly drop since re-listing in 2021. The sharp sell-off follows the company's announcement of a concurrent stock issuance and bond offering, coupled with preliminary earnings that missed analyst expectations.
Hertz is employing an unusual strategy for its debt issuance, offering $100 million of shares specifically designed to be shorted by buyers of its $300 million offering of convertible payment-in-kind notes. This move aims to allow investors to hedge their investment in the notes by shorting the accompanying shares.
Earlier reports indicated that the company's used car market 'softness' was impacting profits. However, a November 2025 press release highlighted positive developments, including record utilization rates, a return to profitability with $184 million in net income and $0.42 diluted EPS in Q3 2025, and strong liquidity of over $2.2 billion.