Hertz Global Holdings (HTZ) Is Down 47.7% After Dilutive Equity Raise And Cut Earnings Outlook

• In late June 2026, Hertz Global Holdings completed a US$100,000,000 follow-on offering of 37,037,037 common shares at US$2.70 each, alongside a planned US$300,000,000 exchangeable notes sale, after cutting its second-quarter earnings outlook due to higher depreciation and losses on used-vehicle sales.

• The twin equity and debt raises highlight how weaker used-car market conditions are pressuring Hertz’s profitability and prompting it to reinforce its balance sheet through fresh capital.

• We’ll now examine how Hertz’s reduced earnings outlook and fresh capital raising reshape the company’s investment narrative and risk profile.

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Hertz Global Holdings Investment Narrative Recap

To own Hertz today, you’d need to believe its push into newer fleets, digital partnerships and mobility tie ups can eventually outweigh current losses and balance sheet strain. The June 2026 equity and planned notes offerings directly affect the biggest near term swing factor: how quickly Hertz can absorb higher depreciation from a weaker used car market without further eroding shareholder value. That same pressure is also the most immediate risk to the story.

The US$100,000,000 follow on share sale at US$2.70, alongside the planned US$300,000,000 exchangeable notes, is the clearest recent signal of how management is responding to that pressure. These transactions sit in sharp contrast to prior heavy buybacks and highlight a new phase where preserving liquidity and managing debt sit front and center for any near term earnings or multiple recovery thesis.

Yet, for all the focus on new partnerships and growth, investors should also be aware that rising depreciation and used vehicle losses could…

Read the full narrative on Hertz Global Holdings (it’s free!)

Hertz Global Holdings’ narrative projects $9.9 billion revenue and $606.2 million earnings by 2029. This requires 4.3% yearly revenue growth and about a $1.24 billion earnings increase from -$637.0 million today.

Uncover how Hertz Global Holdings’ forecasts yield a $4.64 fair value, a 76% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were penciling in about US$9.6 billion of revenue and roughly US$649 million of earnings by 2029, which is a far more upbeat view than consensus and assumes fleet and cost execution that now looks more contested in light of the latest used car and capital raising news.

Explore 5 other fair value estimates on Hertz Global Holdings – why the stock might be worth less than half the current price!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HTZ.

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