NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Hertz Global Holdings, Inc. (NASDAQ: HTZ) breached their fiduciary duties to shareholders. If you currently own Hertz stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about yo. ...

Core Viewpoint - Moore Law, PLLC is investigating potential claims against Hertz Global Holdings Inc. regarding misleading statements related to vehicle depreciation and demand for electric vehicles (EVs) [1]. Group 1: Investigation Details - The investigation focuses on claims that Hertz downplayed the financial impact of vehicle depreciation and overstated its ability to manage it [1]. - It is alleged that demand for Hertz's EVs was not as strong as investors were led to believe, and that the company had an excessive number of vehicles, particularly EVs, in its fleet [1]. - As a result of these factors, Hertz is likely to incur significant losses on the sale of both internal combustion engine (ICE) vehicles and EVs, negatively impacting its financial results [1]. Group 2: Financial Impact - On January 11, 2024, Hertz announced plans to sell approximately 20,000 EVs, about one-third of its global EV fleet, to better align supply with expected demand [2]. - The company indicated that the fourth quarter of 2023 Adjusted Corporate EBITDA would be negatively affected by increased net depreciation expenses due to this sales plan, alongside higher ordinary depreciation expenses [2]. - Following this announcement, Hertz's stock price fell by $0.40 per share, or 4.28%, closing at $8.95 per share on the same day [2].

Core Insights - The article introduces Vasileios Prassas as a new contributing analyst for Seeking Alpha, emphasizing his experience and focus on asymmetric investment opportunities [2]. Group 1 - The analyst has ten years of experience in investment analysis, having worked for notable firms such as Morgan Stanley Investment Management [2]. - The analyst specializes in identifying investment opportunities where companies have faced strategic missteps but have the potential to recover [2]. - The analyst intends to contribute investment ideas infrequently, highlighting the rarity of great investment opportunities [2].

Core Insights - Hertz's decision to allow buyers to complete the entire car purchasing process online aligns with the industry's shift towards digital buying habits, driven by consumer expectations for a seamless online experience [1][2] - The company has formed key partnerships, notably with Amazon Autos, enhancing its e-commerce presence and expanding its inventory visibility [1][2] - Industry forecasts indicate that by 2026, 15% of car purchases in the U.S. could be fully online, making Hertz's online strategy essential for improving resale outcomes [2] Financial Performance - Hertz's stock has increased nearly 64% over the past year and more than 50% since January, reflecting positive market sentiment towards its new strategy [4] - Despite the stock gains, Hertz reported a loss of $0.34 per share in the last quarter and a trailing yearly loss of $3.32 per share, indicating ongoing financial challenges [5] - The second quarter marked a turning point with core profits turning positive for the first time in nearly two years, with net income and adjusted EBITDA improving by approximately $500 million year-over-year [5] Operational Efficiency - The company's strategy of smarter vehicle management has led to a reduction in depreciation per vehicle to $251 per month, below its target of $300, and an increase in vehicle utilization to 83% [6] - Retail car sales reached a five-year high in the second quarter, suggesting that Hertz's digital sales initiatives are effectively engaging consumers [6] - Hertz has improved its financial position with over $1.45 billion in liquidity and a 3% reduction in direct operating costs [6]

Core Insights - The industrials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Hertz Global Holdings Inc (NASDAQ:HTZ)**: - Recently appointed Mike Moore as Chief Operating Officer to enhance operational excellence [7] - Stock price decreased by approximately 19% over the past five days, with a 52-week low of $2.77 [7] - Current RSI value is 28.7, indicating it is oversold [7] - Shares closed at $5.60, down 10.3% on Monday [7] - Momentum score is 82.78 [7] - **Alaska Air Group Inc (NYSE:ALK)**: - Analyst Christopher Stathoulopoulos maintained a Positive rating but lowered the price target from $60 to $58 [7] - Stock fell around 24% over the past month, with a 52-week low of $39.79 [7] - Current RSI value is 24.7, indicating it is oversold [7] - Shares closed at $48.46, down 1.5% on Monday [7] - **Ambipar Emergency Response (NYSE:AMBI)**: - Reported FY24 net revenue of R$3.25 billion, reflecting a year-over-year increase of 25.4% [7] - Stock price decreased by approximately 76% over the past month, with a 52-week low of $0.72 [7] - Current RSI value is 20.9, indicating it is oversold [7] - Shares closed at $1.08, down 4.4% on Monday [7]

Core Insights - The industrials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, typically below 30 [1] Company Summaries - **Hertz Global Holdings Inc (NASDAQ:HTZ)**: - Recently appointed Mike Moore as Chief Operating Officer to enhance operational excellence [7] - Stock has decreased approximately 19% in the last five days, with a 52-week low of $2.77 [7] - Current RSI value is 28.7, with shares closing at $5.60, down 10.3% [7] - **Alaska Air Group Inc (NYSE:ALK)**: - Analyst Christopher Stathoulopoulos maintained a Positive rating but lowered the price target from $60 to $58 [7] - Stock has fallen around 24% over the past month, with a 52-week low of $39.79 [7] - Current RSI value is 24.7, with shares closing at $48.46, down 1.5% [7] - **Ambipar Emergency Response (NYSE:AMBI)**: - Reported FY24 net revenue of R$3.25 billion, reflecting a year-over-year increase of 25.4% [7] - Stock has plummeted approximately 76% over the past month, with a 52-week low of $0.72 [7] - Current RSI value is 20.9, with shares closing at $1.08, down 4.4% [7]

Core Viewpoint - Hertz has promoted Mike Moore to the position of Chief Operating Officer, indicating a strategic move to enhance operational leadership within the company [1] Company Summary - Mike Moore's promotion reflects Hertz's commitment to strengthening its executive team and operational efficiency [1] - The decision to elevate Moore to COO suggests a focus on improving service delivery and operational performance in the car rental industry [1]

Core Insights - Hertz Global Holdings Inc is launching a fully online car-buying platform named HertzCarSales.com, allowing customers to browse inventory and purchase vehicles online [1] Company Developments - The new platform aims to enhance customer experience by providing a seamless online purchasing process [1] - This initiative reflects Hertz's strategy to adapt to changing consumer preferences towards digital solutions in the automotive market [1] Industry Trends - The move towards online car sales is indicative of a broader trend in the automotive industry, where digital platforms are becoming increasingly important for consumer engagement and sales [1] - Companies in the automotive sector are increasingly investing in technology to streamline the buying process and meet customer demands for convenience [1]

Core Viewpoint - Hertz Global has launched a fully online car-buying marketplace to capitalize on the demand for used vehicles, which has positively impacted its stock price [1]. Group 1: Business Developments - The new online marketplace follows Hertz's collaboration with Amazon Autos to sell preowned vehicles [1]. - Customers will have the option for trade-in offers as part of the new marketplace [1]. Group 2: Market Challenges - Hertz has experienced fluctuating rental demand, leading to a reduction in its electric vehicle fleet in favor of gas-powered cars [2]. - The company sold a majority of its Tesla vehicles last year due to increased repair costs [2]. Group 3: Operational Overview - Hertz operates its car rental business through brands such as Dollar, Thrifty, and Firefly in 160 countries [2]. - The Hertz Car Sales brand offers used cars for purchase both online and at various locations across the U.S. [2].

Core Insights - Hertz is enhancing its online shopping platform to facilitate vehicle purchases, allowing customers to secure financing and trade-in offers, marking a significant shift towards online retail [1][2] - The company aims to modernize customer experience and make retail its primary car selling channel, supported by a promotional campaign featuring Tom Brady [2] - The changes are expected to improve vehicle resale values and accelerate fleet turnover, which is crucial for rental companies [3] Company Strategy - Hertz's new e-commerce platform is a critical milestone in its strategy to transition to retail as the main sales channel [2] - The company has a fleet of approximately 560,000 vehicles, with about 80% being less than a year old, indicating a focus on maintaining a modern fleet [3] Financial Implications - Maximizing resale prices is essential for Hertz's profit and loss statement, as rental companies typically sell a portion of their cars at wholesale auctions, which yield lower prices [4] - Hertz's primary resale channel is direct to consumers, supplemented by listings on platforms like Autotrader and partnerships with Carvana and Amazon Autos [5][6] Market Context - Hertz is undergoing a turnaround after filing for bankruptcy in 2020 due to the pandemic, with a focus on fleet management and cost efficiency [7] - Recent earnings reports indicate a recovery, with the second-quarter results being the best in nearly two years, as vehicle supply stabilizes and demand remains steady [8]