After being heavily bet on by hedge fund giant Ackman, rental car giant Hertz surged over 56% in a single day

Zhitong
2025.04.16 23:57
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Famous investor Bill Ackman's Pershing Square Capital Management has significantly increased its stake in Hertz Global Holdings, Inc., causing the stock price of the car rental company, which completed its bankruptcy restructuring four years ago, to soar. On Wednesday, Hertz's stock price surged over 56%, and continued to rise more than 35% in after-hours trading, after a regulatory filing revealed that Pershing Square held 4.1% of Hertz's shares as of the end of 2024. According to informed sources, through stock and derivative trading, the institution's stake has significantly increased to 19.8%, making it Hertz's second-largest shareholder. Sources indicated that Ackman's investment firm obtained a waiver from the U.S. Securities and Exchange Commission, allowing it to delay disclosing its holdings until Wednesday, enabling it to significantly increase its shareholding. Over the past decade, Hertz has been mired in operational difficulties, including declaring bankruptcy during the pandemic in 2020. After completing its bankruptcy restructuring in 2021, the company made a significant bet on all-electric vehicles, particularly Tesla models, but suffered billions of dollars in losses due to a sharp decline in used car residual values. The financial report released in February this year showed that Hertz's total loss for 2024 reached $2.9 billion, with a loss of $245 million in the fourth quarter due to the disposal of electric vehicle assets

According to Zhitong Finance APP, renowned investor Bill Ackman's Pershing Square Capital Management has significantly invested in Hertz Global Holdings, Inc. (HTZ.US), causing the stock price of the car rental company, which completed its bankruptcy restructuring four years ago, to soar.

On Wednesday, Hertz's stock price surged over 56%, continuing to rise more than 35% in after-hours trading, after a regulatory filing revealed that as of the end of 2024, Pershing Square held 4.1% of Hertz's shares. According to informed sources, through stock and derivative trading, the institution's shareholding has significantly increased to 19.8%, making it Hertz's second-largest shareholder.

Informed sources indicated that Ackman's investment firm obtained a waiver from the U.S. Securities and Exchange Commission, allowing it to delay disclosing its holdings until Wednesday, enabling it to significantly increase its stake.

Over the past decade, Hertz has long been mired in operational difficulties, including declaring bankruptcy during the pandemic in 2020.

After completing its bankruptcy restructuring in 2021, the company made a significant bet on all-electric vehicles, particularly Tesla (TSLA.US) models, but suffered billions of dollars in losses due to a sharp decline in used car residual values.

The financial report released in February this year showed that Hertz's total loss for 2024 reached $2.9 billion, with the fourth quarter alone incurring a loss of $245 million from the disposal of electric vehicle assets

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