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Thursday, April 22, 2021

Is Hertz Stock A Buy Right Now?

As the major vehicle leasing and rental services provider company, Hertz Global inches towards bankruptcy, analysts find an interesting yet risky proposal for Hertz stocks right now.

The coronavirus pandemic hit the world in the beginning of this year and since then the popular car rental company has been going down the financial ladder. Apart from the air-line and cruise-line industries, the car rental services companies also faced a major downturn in the market because of reduced rental demands. And there seems to be no end to this till a vaccine is on the horizon. With this as the situation, investors are in a dilemma whether or not to invest in Hertz stock right now?

Hertz Global Filed For Bankruptcy

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A company official mentioned that the uncertainty regarding Hertz stock is likely to linger till revenue returns and the second-hand car market completely opens up its sales. The company’s upcoming bearish trend is clear to investors but bullish investors are still looking for a twist in the Hertz stock tale.

Hertz Global (OTCMKTS: HTZGQ) reported a petition for bankruptcy in May that shook many investors who have been investing in the trusted stock for a long time. The company was established in 1918 and since then 2020 is the worst time that Hertz stock has faced.

Hertz stock (HTZ) was under the New York Stock Exchange earlier. However, on 30th October, the company was delisted from NYSE. The stock that once traded at an average daily of $100 about six years ago is now threatened by bankruptcy.

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However, investors are not ready to give up. The company’s stock has seen a rise to $1.10 from 80 cents in the October-to-November period. Bullish investors are seeing this as an opportune moment to grab Hertz stock for another reason as well.

Hertz Stock In The Face Of A Takeover?

The meager rise in the stock is not enough to say that the company is making progress, despite what the company’s CEO and President Paul Stone mentions in one of his statements. However, investors are inclined towards investing in Hertz stock right now because of a potential takeover. With the company filing bankruptcy and the decreased stock value in the market, Hertz Global is the perfect match as a target of a takeover.

Companies like Hamzah Mazari might move into the business of car -renting as they have expressed interest in second-hand retailers like AutoNation or CarMax and so on earlier in 2020. They also acquired a portion of Hertz fleet several months ago.

Another possible option could be that Avis Budget Group, a rival company might be open for acquisition of Hertz Global holdings.

However, official sources are yet to corroborate this information. Till then, Hertz stock is in the downward curve. Risk-loving investors might be interested in the present status of Hertz stock.

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