Hertz stock jumps over 50% following Bill Ackman’s significant investment in the rental car company.

Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in NYC on Sept. 28th, 2023.

@ Adam Jeffery | CNBC

Bill Ackman’s Pershing Square has taken a significant stake in Hertz, the rental-car company that emerged from bankruptcy four years ago, leading to a notable rise in its stock price. Shares of Hertz surged 56% on Wednesday after a regulatory filing disclosed that Pershing Square had built a 4.1% position as of the end of 2024. The firm has substantially increased this position to 19.8% through shares and swaps, making it Hertz’s second largest shareholder, according to a source familiar with the situation.

Stock Chart:
Your stock chart icon here for Hertz

The source indicated that Ackman’s investment firm received permission from the SEC to postpone the filing of the position until Wednesday, which enabled it to acquire a significantly larger number of shares. Hertz has faced challenges over the past decade, including filing for bankruptcy during the coronavirus pandemic in 2020.

After emerging from Chapter 11 bankruptcy in 2021, the company made substantial investments in all-electric vehicles, particularly Teslas, which resulted in significant financial losses due to a steep drop in their residual values. In its fourth-quarter earnings report for 2024, Hertz disclosed a $2.9 billion loss for the year, including a $245 million loss from the sale of EVs in the fourth quarter.