Hertz (HTZ) has announced that it has received a letter from the New York Stock Exchange (NYSE) revealing plans to delist Hertz’s common stock from the exchange. Shares in HTZ are currently down 13% in Wednesday’s pre-market trading.
According to an SEC filing made by Hertz, NYSE Regulation reached its decision after Hertz disclosed on May 22, 2020 that it has commenced voluntary petitions for reorganization under chapter 11 of the Bankruptcy Code.
Hertz says it has appealed the determination and has requested a hearing before the NYSE. “At this time, the common stock of the company will continue to be listed and trade on the NYSE pending resolution of such appeal” Hertz says.
The company adds that there can be no assurance that the NYSE will grant its request for continued listing at the hearing and therefore “whether there will be equity value in the company’s common stock.”
Despite an impressive rally over the last few days, Hertz has seen its stock plunge 73% in value year-to-date. The troubled car rental company has a bearish Moderate Sell consensus from the Street with 2 recent hold ratings and 4 sell ratings. (See Hertz stock analysis on TipRanks).
The average analyst price target stands at just $2.33, indicating a further 44% downside potential lies ahead. Deutsche Bank’s Chris Woronka has a hold rating on Hertz and $3 price target, saying “it’s difficult to fundamentally analyze the company” due to the bankruptcy proceedings.
While the “reopening trade” for stocks set to improve post-lockdown has become popular, Woronka nevertheless finds himself “questioning the true depth of the buying in what increasingly feels like a capitulation-type short squeeze being exacerbated by high frequency trading programs.”
Related News:
Beleaguered Hertz Sinks 36% In After-Market On Bankruptcy Protection Filing
Hertz Down 11% After-Hours As Carl Icahn Sells Stake At $1.8B Loss
Global Airlines Are Set To Lose $84.3 Billion In 2020, IATA Says
