Hertz Stock Delisted From New York Stock Exchange
During the 30th October session, Hertz stock was delisted by the New York Stock Exchange. It has been a giant in this field since the 1950s. Unfortunately, this colossal stock giant has fallen down. There are several factors that have contributed to this fall. The COVID-19 pandemic is definitely one of them. Let’s break down how the stock market is reacting to Hertz stock right now.
Hertz Stock And The Pandemic
The coronavirus has hit all sectors of life. Several businesses have been forced to shut down, which has resulted in mass unemployment. Even though we are nearing the end of this year, the novel coronavirus does not seem to be going anywhere. And this is a massive concern for everyone.
The stock market has felt the worst burns in many years due to this pandemic. Hertz stocks’ decline, too, can be attributed to the pandemic and the lockdowns. Any place of business that relied on outdoor activities has been severely affected by the shutdowns. It’s no wonder that a rental car agency such as Hertz has lost a majority of its profits.
However, if we look closely, the company had already been facing a decline even in 2017. The time was not particularly difficult for the country’s economy. Even so, the company lost around 93 percent of its value from the year 2014 to 2017. Now, the company is clearly bankrupt, and the stock market investors are not happy about it.
How Are The Stock Market Investors Reacting To Hertz?
The confidence of the stock market investors in Hertz had been fading for quite some time now. On 18th May, Kathryn Marinello, the CEO of Hertz, left the company just days before that company had to restructure its leases. Later on, Henry R, the chairman of Hertz, released a statement introducing Paul Stone, the next CEO.
What did this news mean for Hertz stock? Not much. The investors were still annoyed that the lenders were let down and left in an unstable position by the former CEO.
Since May, the company has further lost 75 percent of its stock market value. Keeping everything in mind, it’s safe to say that Hertz stock is not going to increase in value anytime soon. All the stock market institutional investors and hedge funds are steering clear of the age-old car rental company.
Some experts have discussed what the arrival of the coronavirus vaccine would mean for Hertz and other declining companies. Some say that business could pick up soon. However, the safe bet would be to not touch Hertz stock for a while since it was going down even before the pandemic had hit.
Even so, some are still expecting that Hertz will make a miraculous comeback like Citi.
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