After Hertz Global recovered from its bankruptcy filing last year, the company has stated it intends to buy back up to $2 billion of its stock.
The company, which primarily focuses on car rental, suffered significant losses due to demand drops throughout the Covid-19 pandemic. Apollo Global Management Inc. purchased a significant portion of the company’s stock in an attempt to bail them out of bankruptcy. The majority of the shares that Hertz intends to purchase will be those that are currently held by Apollo. Since Hertz has announced its intentions to buy back stock, Hertz's stock rose more than 1.5%.
Before Hertz declared bankruptcy, the Covid-19 pandemic plummeted sales and resulted in the company’s stock price dropping down to 56 cents. As the stock began to drop, numerous stock traders began to capitalize on the low price, however, once the company filed for bankruptcy the New York Stock Exchange suspended trading of Hertz.
Since the release of the Covid-19 vaccine, Hertz has rebounded and revenue doubled throughout 2021 when compared to 2020. Hertz has again been listed on the Nasdaq earlier this month and has reached a share price of $29, however, this number has been decreasing slowly.
Source: CNBC
