What Happened?
Shares of equipment rental company Herc Holdings (NYSE:HRI) jumped 2.4% in the afternoon session after the stock extended its positive momentum as the company completed the integration of its $5.3 billion acquisition of H&E Equipment Solutions.
According to President and CEO Larry Silber, speaking at Morgan Stanley’s 13th Annual Laguna Conference on September 11, all 165 acquired locations were expected to be on the Herc platform and operating as one company by Monday morning. The successful integration of H&E boosts Herc Rentals' scale by more than 30% and significantly expands its specialty fleet offerings. This development signals the successful execution of a major strategic move for the equipment rental company, positioning it for enhanced market presence.
After the initial pop the shares cooled down to $129.36, up 2.4% from previous close.
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What Is The Market Telling Us
Herc’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 5.8% after concerns about the health of the U.S. economy grew following a significant downward revision of job market data.
The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
Herc is down 30.5% since the beginning of the year, and at $129.36 per share, it is trading 45.9% below its 52-week high of $239.28 from November 2024. Investors who bought $1,000 worth of Herc’s shares 5 years ago would now be looking at an investment worth $3,171.
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