Hertz Stock Drops Monday, Giving Back Some Gains After Ackman-Fueled Rally

Hertz (HTZ) shares fell Monday, erasing some of last week’s gains after billionaire Bill Ackman’s Pershing Square disclosed a large investment in the company. 

The stock dropped 5% Monday, possibly amid some profit-taking after the struggling rental car firm’s shares more than doubled last week. The surge came as Pershing Square revealed it held 12.7 million Hertz shares at the end of the fourth quarter, a roughly 4% stake in the company. 

Since then, Pershing has substantially increased its position to nearly 20%, making Ackman’s firm Hertz’s second-largest shareholder, CNBC reported Friday. Hertz declined to comment on the report.

Hertz CEO Gil West said in a letter to employees viewed by Investopedia, “we should all feel encouraged by Bill Ackman’s comments and energized by the strong support shown by him.”

Pershing’s growing investment comes after Hertz reported a loss of $2.86 billion in 2024. The company took a hit from vehicle depreciation and the fallout from its unsuccessful efforts to switch its fleet to electric vehicles, among other things.

UPDATE—April 21, 2025: This article has been updated since it was first published to reflect more recent share price values and that Hertz declined to comment on reports Pershing has increased its stake to close to 20%.