Pershing Square Takes Nearly 20% Stake in Hertz

Bill Ackman's Pershing Square Capital Management has disclosed an almost 20% stake in Hertz Global Holdings, including swaps, making it the company's second-largest shareholder. Following the announcement, Hertz shares surged by more than 56%. Pershing Square acquired 12.7 million shares valued at about $46.5 million, and its significant investment has sparked speculation about a potential strategic turnaround or activist involvement. Hertz, which emerged from bankruptcy in 2021, has faced recent challenges including a failed electric vehicle initiative and declining stock performance. Despite the rally, six brokerages rate the stock as a 'hold' and four as 'sell,' with a median price target of $3. Neither Hertz nor Pershing Square have commented publicly on the investment.