Hertz (HTZ) shares fell 14.8% in afternoon trading, extending a 27.6% drop from the previous session, after the car rental giant slashed its second-quarter Adjusted Corporate EBITDA guidance to between $50 million and $80 million, missing analyst estimates. The company blamed unexpected weakness in the used car market, which drove up depreciation costs and turned vehicle sale gains into losses. Hertz also announced plans to raise $100 million in stock and $300 million in convertible senior notes. J.P. Morgan reiterated a “Sell” rating. The stock is down 51.6% year-to-date, trading at $2.53.
In-Depth:
What Happened?
Shares of global car rental company Hertz 
HTZfell 14.8% in the afternoon session after the stock continued to retreat as the company cut its second-quarter profit forecast and announced plans to raise capital through stock and note offerings.
The shift extfinishs a sharp drop from the previous session after Hertz lowered its second-quarter Adjusted Corporate EBITDA guidance to a range of $50 million to $80 million, well short of analyst estimates. The company cited “unexpected softness in the utilized car market” for the revision, which is increasing depreciation costs and caapplying losses on vehicle disposals. Alongside the weaker outview, Hertz revealed plans to offer $100 million in stock and $300 million in notes. Such capital-raising efforts are often seen by investors as a sign that a company necessarys cash, adding to negative sentiment. Following the news, analysts at firms including J.P. Morgan reiterated their “Sell” ratings on the stock, pointing to the weaker operating performance.
What Is The Market Telling Us
Hertz’s shares are extremely volatile and have had 54 shifts greater than 5% over the last year. But shifts this large are rare even for Hertz and indicate this news significantly impacted the market’s perception of the business.
The previous large shift we wrote about was 1 day ago when the stock dropped 27.6% on the news that the company reduced its second-quarter earnings forecast and announced plans to raise capital through stock and debt offerings.
Hertz lowered its second-quarter Adjusted Corporate EBITDA outview to a range of $50 million to $80 million, citing unexpected weakness in the utilized car market. The company explained that softness in May turned vehicle sale gains from April into losses, increasing its depreciation costs. Compounding the negative outview, Hertz also announced plans for two separate offerings: $300 million in exalterable senior notes and $100 million in common stock. These capital-raising efforts, combined with the weaker earnings forecast, fueled investor concerns, leading to the significant sell-off.
Hertz is down 51.6% since the launchning of the year, and at $2.53 per share, it is trading 68.3% below its 52-week high of $7.97 from July 2025. Investors who bought $1,000 worth of Hertz’s shares 5 years ago would now be viewing at only $93.55.
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