Hertz Global Holdings, Inc. (HTZ) is an international provider of vehicle and equipment rentals to individual, professional, and corporate customers. At the time of this post (12:00PM CST) HTZ is currently trading at 24.30, up 2.2% on the day. The stock has traded in a fairly wide 52 week range of 18.50-31.61, though most of the volatility in share prices has taken place just over the last few months. 52 week highs printed in Hertz in late August, but the stock was unable to hold its gains and sold off hard into the lows just two months later on news of continued accounting reviews and mixed investor sentiment regarding activist investor Carl Icahn’s 8% stake in the company. Hertz has managed to rebound off of these lows however, and has held up fairly well following last Friday’s news that the company had found its new CEO in John Tague. HTZ is set to report earnings today, 11/24/2014 after the market close.
Over the past eight quarters, HTZ has traded with mixed to negative results following earnings, trading lower on 5 out of 8 sessions immediately following the EPS release. HTZ has been a relatively modest mover on these sessions, with an average historical move of just 1.6% during this time period. The options market is currently pricing in a move of about 3.87% or $0.95 in the underlying stock following this afternoon’s report. Despite the recent rebound in HTZ as it has rebounded off of 52 week lows last month, I will be leaning towards a resumption in bearish sentiment, and looking to get short this name into earnings.