Hertz is Sinking as New CFO and COO Are Already Jumping Ship: Should Investors Cut Losses Too?

Hertz Global Holdings Inc. (HTZ) fell more than 7% yesterday after announcing that two key executives – who spent as little as 6 months with the company – were resigning. This follows the resignation of its CEO just a few months back after the car rental company struggled to gain footing in its new EV strategy. 

CFO Alexandra Brooks just took the reins of the CFO position last summer, and is already moving on to pursue other opportunities. She’ll be replaced by the current CFO of Spirit Airlines Scott Haralson at the end of June. In the meantime, Brooks will stay on board to facilitate as seamless a transition as possible. While she only spent a year in the role, she had been an employee with the company since 2020.

To make matters worse, COO Justin Keppy also announced his departure yesterday morning just 6 months into his stint with Hertz. There was no reason announced for his resignation.

However, the company did its best to shield against negative press by voicing excitement about the addition of new CFO Scott Haralson. 

New CEO Gil West says Haralson has a deep understanding of financial management and has exhibited an ability to leverage capital markets to drive business transformation. His expertise will be invaluable as Hertz seeks to rotate its fleet and enhance its cost discipline while working to boost financial performance across the board.

It’s been a brutal year for HTZ investors as the stock has been steadily sliding lower and lower. It’s down more than 60% year-to-date and 75% in the past year. Seeing 3 key executives jump ship within 3 months of each other certainly isn’t going to help turn things around.

So, is this your sign to follow suit and cut ties on this stock if you haven’t already? We’ve taken a look at HTZ through the VectorVest stock analysis software and found 3 things you need to see.

HTZ Still Has Fair Upside Potential, But Poor Safety and Very Poor Timing Mean It’s Time to SELL This Stock

VectorVest is a proprietary stock rating system that saves you time and stress while empowering you to win more trades. It does this by boiling down complex technical data into clear, actionable insights. 

In fact, you’re given everything you need to know to make calculated decisions in 3 simple ratings: relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation.

It gets even better, though. You’re given a clear buy, sell, or hold recommendation for any given stock at any given time based on its overall VST rating. As for HTZ, here’s what we found:

• Fair Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This makes it a far superior indicator than the typical comparison of price to value alone. The RV rating of 1.09 is fair for HTZ, and the stock is actually undervalued with a current value of $6.58/share.
• Poor Safety: The RS rating is a risk indicator. It’s derived from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. HTZ has a poor RS rating of 0.59.
• Very Poor Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. This is the biggest issue for HTZ right now, as the very poor RT rating of 0.23 looks to be getting worse and worse.

The overall VST rating of 0.69 is poor for HTZ, and is accompanied by a SELL warning. If you haven’t cut losses on this stock already, it may be time to do so - but not before you review this free stock analysis. There’s more to the story than meets the eye, so transform your trading strategy with VectorVest today!

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Use VectorVest to analyze any stock free. VectorVest is the only stock analysis tool and portfolio management system that analyzes, ranks and graphs over 18,000 stocks each day for value, safety, and timing and gives a clear buy, sell or hold rating on every stock, every day.

VectorVest advocates buying safe, undervalued stocks, rising in price. HTZ is sliding lower and lower after the company announced the resignation of both its CFO and COO, following the departure of its CEO just a few months back. The stock is down 60% so far this year - it has fair upside potential, but poor safety and very poor timing.

Before you invest, check VectorVest! Click here to ANALYZE ANY STOCK FREE and see our system in action!