Harris Lawrence Silber Implements A Sell Strategy: Offloads $3.18M In Herc Hldgs Stock

A substantial insider sell was reported on May 15, by Harris Lawrence Silber, President & CEO at Herc Hldgs (NYSE:HRI), based on the recent SEC filing.

What Happened: Silber's recent move involves selling 20,000 shares of Herc Hldgs. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $3,176,121.

In the Thursday's morning session, Herc Hldgs's shares are currently trading at $159.25, experiencing a down of 0.0%.

About Herc Hldgs

Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest equipment rental company (4% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $6.4 billion. It serves commercial and residential construction customers, the environmental sector, industrial entities, and entertainment production companies. During much of its 50-year-plus history, the company has rented equipment such as aerial lifts to its customers for intermittent use. More recently, it has broadened its catalog to include a host of specialty items. Separately, Herc Holdings' strategy now incorporates long-term rentals to industrial customers where Herc maintains its own staff at the customer site.

Key Indicators: Herc Hldgs's Financial Health

Revenue Growth: Herc Hldgs's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 8.65%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Navigating Financial Profits:

Gross Margin: Achieving a high gross margin of 35.45%, the company performs well in terms of cost management and profitability within its sector.

Earnings per Share (EPS): Herc Hldgs's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.3.

Debt Management: Herc Hldgs's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.53, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

In-Depth Valuation Examination:

Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 13.16, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

Price to Sales (P/S) Ratio: The current P/S ratio of 1.35 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Herc Hldgs's EV/EBITDA ratio, lower than industry averages at 6.23, indicates attractively priced shares.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Herc Hldgs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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