Hertz shares skyrocketed by 56%, closing at $5.71 on Wednesday, following the revelation that Pershing Square, an investment firm run by billionaire Bill Ackman, has acquired a significant stake in the beleaguered car rental company. According to a regulatory filing on Wednesday, at the end of the fourth quarter, Pershing Square owned more than 12.7 million shares in Hertz, estimating about 4% of the company. No immediate response was received from Hertz regarding the development.
In 2024, Hertz reported a substantial loss of $2.86 billion due to factors like depreciation of its vehicle fleet and failed attempts to transition to electric cars, leading to a nearly two-thirds drop in its stock value the same year. Despite the significant rise in share prices on Wednesday, the company’s shares are down by around 11% over the past 12 months.
In a separate announcement on Wednesday, Hertz proclaimed a collaboration with UVeye, touted to bring advanced AI inspection to the company's operations in the United States.