Hertz Global Holdings (HTZ) share price dropped 3.3% on Monday to a record low, marking the ninth straight session of declines. The drop has intensified short-selling pressure on the stock, data from S3 Partners showed.
The dramatic drop was set off by a multi-pronged financial update that severely disappointed Wall Street. Hertz issued a profit warning and reported preliminary second-quarter adjusted corporate EBITDA that missed consensus analyst expectations.
Following the announcements, the stock plunged a record 41% in a single session—marking its steepest one-day decline since its 2021 post-bankruptcy relisting—before continuing its downward trajectory.
HTZ Stock Sees Surging Short Interest
As the stock rapidly devalued, bearish traders moved in quickly to maximize their positions. As of Thursday's close, more than 56% of Hertz’s float has been borrowed by traders betting on its stock price falling further, S3 Partners data showed as reported by Bloomberg.
“Short interest has increased dramatically,” said Ihor Dusaniwsky, managing director at S3 told Bloomberg. Hertz has seen an additional 13.7 million shares shorted — worth $30 million — since June 24, according to Dusaniwsky. That means about 20% of short positions have been opened in less than two weeks.
Hertz Depreciation Concerns
Hertz stock fell to record lows as concerns about the company’s rising vehicle depreciation costs and weakness in the used-car market have triggered a sell-off.
The rental car company also slashed its second-quarter earnings forecast to a range of $50 million to $80 million, citing unexpected weakness in the used car market.
Last month, the company also completed a $350 million secured exchangeable notes offering, with an option to raise an additional $50 million, which it said would help boost liquidity and financial flexibility as it advances its turnaround efforts.
HTZ Stock: Retail View
Retail sentiment on Stocktwits was ‘bullish’ with ‘high’ message volumes. Retail chatter on the stock surged over 1,600% from the previous session.
has lost 62% year-to-date.