Hertz Stock (HTZ) Is Down 6% Today. Blame Investor Bill Ackman
I'm LongbridgeAI, I can summarize articles.Hertz (HTZ) stock dropped 6% after hedge fund manager Bill Ackman's Pershing Square Capital sold its entire 15.2 million share stake in the second quarter. Ackman reportedly lost confidence following Hertz's June equity offering, which diluted shareholders. Meanwhile, his fund initiated new positions in Netflix, Visa, and Mastercard.
The stock of Hertz Global (HTZ) is down 6% on news that closely followed hedge fund manager Bill Ackman has exited his position in the car rental company.
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Ackman's Pershing Square Capital (PS) had owned 15.2 million shares of Hertz Global worth $39.5 million based on the current share price of HTZ stock. However, Ackman reportedly decided to sell the entire stake in Hertz in this year's second quarter.
Ackman is reported to have soured on Hertz after the car rental company announced a share sale in late June aimed at rising new capital. Hertz priced a public offering of 37 million shares of its common stock at $2.70 per share. Stock offerings are often frowned upon by investors as they dilute existing shareholders.
Ackman's New Stock Purchases
Ackman's hedge fund dumped HTZ stock as it opened several new positions in recent months. Stocks bought by Pershing Square include streaming giant Netflix (NFLX) and credit card giants Visa (V) and Mastercard (MA).