On Thursday, shares of Hertz Global Holdings, Inc. (NYSE: HTZ) showed a 15.75% increase with a closing price of $15.07. The stock is trading higher for a week as it climbed from its July 5 close of $11.03 to Thursday’s close of $15.07. Founded in 1918, Hertz Global Holdings Inc. is a U.S. car rental and leasing company with international locations in 150 countries worldwide and is the second largest U.S. car rental company by sales, location, and fleet size.
In an industry that is not doing so well, the rebound in stock price comes at a timely manner. Similar companies such as Avis are also suffering from quarterly losses, below estimated revenue, and huge drops in stock price. For NYSE: HTZ, its shares in one year showed a decline of around 70% and its six month showed a decline of around 30%. However, for this month, Hertz saw a huge rebound as it is up over 60% from its year low of $8.70 in June.
What could be contributed to this surge in the stock? It was announced earlier in the month that apple is working with Hertz to manage its self-driving car. Apple Inc. (NASDAQ: AAPL) will be leasing a small fleet of cars, all Lexus SUVs, from Hertz for autonomous software testing. Pricing checks on the industry over the past month also suggest that pricing trends have turned positive for Hertz, reversing weaker trends from earlier in the year. Comments from the airline industry that travel demand in the U.S. is staying strong also bolstered shares of Hertz, because rental car demand and air travel volume are typically positively correlated.