08 August 2017
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
Hedge funds continue to attract inflows, says J.P. Morgan survey
23 February 2018 | London | Reporter: Brian Bollen
Hedge funds continue to attract inflows, according to a J.P. Morgan 2018 Institutional Investor Survey
SEC votes to extend compliance date for liquidity classification
23 February 2018 | Washington DC | Reporter: Jenna Lomax
The deadline, which will be extended by six months, will provide funds additional time to complete implementation of the final rule's classification requirement
ISDA releases best practice for margin call issuance and response
23 February 2018 | London | Reporter: Jenna Lomax
The ISDA CIC examined the minimum set of fields which is required to communicate the issuance of a margin call, as well as the expected response of a margin call
Saxo Bank sees positive growth in 2017
23 February 2018 | Copenhagen | Reporter: Jenna Lomax
Saxo Bank’s reported 33 percent increase in net profit follows the sale of its subsidiary Saxo Privatbank earlier this month
Unsecured euro money market borrowing down
22 February 2018 | Frankfurt | Reporter: Brian Bollen
Daily average borrowing turnover in the unsecured segment fell from €112 billion in the ECB’s seventh reserve maintenance period to €110 billion in its eighth such period
Deutsche Börse sees revenue growth for 2017
21 February 2018 | Frankfurt | Reporter: Jenna Lomax
Deutsche Börse has reported that its yearly revenue increased by 3 percent in 2017, ending the year with €2.4 million, compared to €2.3 million at the end of 2016
Top of hot stocks: TechnipFMC PLC and Match
21 February 2018 | London | Reporter: Jenna Lomax
TechnipFMC PLC, formed by the merger of oil services companies, led the FIS Astec Analytics hot stocks list for EMEA last week