08 August 2017
London
Reporter: Drew Nicol

Car rental company in a world of Hertz ahead of earnings


American car rental firm Hertz was the star of the show for short sellers ahead of earnings with a 50 percent increase in demand to borrow shares, according to IHS Markit.

The flood of interest took shares on loan to an all time high of 35 percent.

“The high demand to borrow Hertz demonstrates that short sellers are still wary of the ongoing weakness in the rental market and the firm’s exposure to cratering secondhand car values,” explained IHS Markit analyst Simon Colvin in a research note on short regional interest ahead of earnings.

Colvin also noted that more than a quarter of analysts that cover Hertz have a sell or underweight rating despite the rental company’s shares rallying in recent weeks.

Hertz just beat LGI homes, a Texas-based housing developer, and Axon Enterprises, an aerospace manufacturer, to the top spot, according to IHS Markit data.

LGI Homes has currently has 31.5 percent of shares out on loan, while Axon hit 30.5 percent, as of last week.

More Industry news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Al Ramz Capital gains short selling licence
24 November 2017 | Abu Dhabi | Reporter: Jenna Lomax
Al Ramz Capital is one of the first investment providers to offer short-selling in the UAE
Hedge funds continue 2017 run
23 November 2017 | Madrid | Reporter: Drew Nicol
Global AUM of hedge funds rose 24 percent to $3.2 trillion in the past two years, according to data captured by IOSCO’s latest market survey.
Goldman Sachs appointed by Thrivent for agent lending
23 November 2018 | Minneapolis | Reporter: Jenna Lomax
Thrivent Financial has appointed Goldman Sachs as it new lending agent
Hedge fund industry reaches new highs in Q3
22 November 2017 | London | Reporter: Zsuzsa Szabo
The hedge fund industry has recorded strong performance in Q3 2017, after stumbling in 2016, according to Preqin
Eurex Clearing’s partnership entices strong market interest
20 November 2017 | Frankfurt | Reporter: Zsuzsa Szabo
Citigroup, Deutsche Bank, HSBC and J.P. Morgan Securities, to name but a few, signed up for the programme, which opened its registration in October
ISLA and the CBI tackle UCITS collateral rules
17 November 2017 | Dublin | Reporter: Drew Nicol
The Central Bank of Ireland’s director of policy and risk has confronted industry concerns around stringent collateral re-use and “arbitrary” fee splits for UCITS funds at a roundtable discussion
NEX imbues derivatives platform with KVA analytics
16 November 2017 | London | Reporter: Drew Nicol
KVA calculations determine the lifetime costs of capital as part of the pricing of an OTC derivative and the service will helps firms understand the capital costs an OTC trade will consume over the portfolio’s lifetime.