HTZ Stock Hits Record Low — Extends Losing Streak To Nine Sessions As Short Interest Hits Record High

• Negative wagers against Hertz have surged to an all-time high as bearish investors capitalize on the company's severe market downturn. 
• The massive surge in short interest was triggered after the rental car company's stock plummeted by roughly 60% in less than 14 days. 
• The steep sell-off follows a disappointing preliminary second-quarter earnings report, a sudden capital-raising push via a new stock issuance, and a concurrent bond offering.

Hertz Global Holdings (HTZ) share price dropped 3.3% on Monday to a record low, marking the ninth straight session of declines. The drop has intensified short-selling pressure on the stock, data from S3 Partners showed. 

The dramatic drop was set off by a multi-pronged financial update that severely disappointed Wall Street. Hertz issued a profit warning and reported preliminary second-quarter adjusted corporate EBITDA that missed consensus analyst expectations. 

Following the announcements, the stock plunged a record 41% in a single session—marking its steepest one-day decline since its 2021 post-bankruptcy relisting—before continuing its downward trajectory. 

HTZ Stock Sees Surging Short Interest 

As the stock rapidly devalued, bearish traders moved in quickly to maximize their positions. As of Thursday's close, more than 56% of Hertz’s float has been borrowed by traders betting on its stock price falling further, S3 Partners data showed as reported by Bloomberg.  

“Short interest has increased dramatically,” said Ihor Dusaniwsky, managing director at S3 told Bloomberg. Hertz has seen an additional 13.7 million shares shorted — worth $30 million — since June 24, according to Dusaniwsky. That means about 20% of short positions have been opened in less than two weeks. 

Hertz Depreciation Concerns

Hertz stock fell to record lows as concerns about the company’s rising vehicle depreciation costs and weakness in the used-car market have triggered a sell-off. 

The rental car company also slashed its second-quarter earnings forecast to a range of $50 million to $80 million, citing unexpected weakness in the used car market.

Last month, the company also completed a $350 million secured exchangeable notes offering, with an option to raise an additional $50 million, which it said would help boost liquidity and financial flexibility as it advances its turnaround efforts.

HTZ Stock: Retail View 

Retail sentiment on Stocktwits was ‘bullish’ with ‘high’ message volumes. Retail chatter on the stock surged over 1,600% from the previous session. 

HTZ stock has lost 62% year-to-date. 

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