Monday, September 8, 2025

The Madness Goes On! Bankrupt Hertz Stock Continues to Attract Risky Investors

Once again, Hertz has taken the spotlight in the investing scene. Shortly after the infamous car rental company filed for bankruptcy after it got crushed by the weight of the coronavirus pandemic, retail investors, for some unexplainable reason, rushed to purchase the bankrupt stock, causing it to increase by nearly 168%! All meanwhile billionaire investor Carl Icahn, was at the same time dumping his 55.3 million Hertz shares faster than you can say bankruptcy.

But the madness continues! It appears that investors are pushing their optimism about the distraught rental company to new levels. Right after regular trading commenced on Friday, Hertz’s stock was trading as high as $3.7 – which amounts to a 353% increase since close on Wednesday. Now either there is looming optimism about a rebound in the air travel industry, or the coronavirus pandemic has given rise to a swarm of extreme risk-seeking investors.

The new post-pandemic Hertz equity holders are exposing themselves to a significant risk, because once a company files for a Chapter 11 bankruptcy as per the US Bankruptcy Code, the said company has to repay all debts in full before payments to stockholders are made. However, some of that investor optimism may stem from the rebound of prices in the used car market. According to market researcher JD Power, used vehicle prices have increased to to the pre-virus forecast since suffering a historic decline in April. This may be good news for Hertz, which has a fleet of nearly 500,000 rental vehicles slated for used vehicle auctions in the next short while.

According to Jefferies analyst Hamzah Mazari, there is a very high probability that Hertz stock will not come out with a positive rebound. Optimistic equity holders are most likely going to be met with disappointment, because Mazari is anticipating a 90% chance that the stock will once again trade below $0.50 once the dust settles.

Information for this briefing was found via Bloomberg and JD Power. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

Related News

Morgan Stanley Anticipates Hertz Stock to Hit Zero

Morgan Stanley has issued a prediction regarding the infamously bankrupt car rental company Hertz Global...

Tuesday, June 23, 2020, 07:13:00 PM

Gamblers Resort to Stock Trading as Means of Filling Empty Void

While almost the entire country went into lockdown mode as the government imposed stay-at-home orders,...

Sunday, May 24, 2020, 01:51:00 PM

Courts Side With Banks, Reject Class Action Against Unearned Brokerage Fees

Ontario Superior Court Justice Edward Belobaba dismissed an application to certify a class-action lawsuit against...

Thursday, January 26, 2023, 05:26:00 PM

Hertz Announces Plan to Sell 20,000 Electric Vehicles from U.S. Fleet

Hertz Global Holdings Inc. (NASDAQ: HTZ) revealed on Thursday its decision to sell approximately 20,000...

Thursday, January 11, 2024, 10:32:00 AM

Hertz Global Files For Chapter 11 Bankruptcy Protection

Hertz Global Holdings (NYSE: HTZ) has finally filed for bankruptcy protection as of this evening...

Friday, May 22, 2020, 11:38:55 PM