On September 12, 2023, Lawrence Silber, President & CEO of Herc Holdings Inc (HRI, Financial), sold 4,000 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 20,714 shares and purchased none.
Lawrence Silber has been with Herc Holdings Inc for several years, leading the company in its mission to provide equipment rental solutions to a diverse customer base. Herc Holdings Inc is a full-line equipment-rental supplier in locations primarily in the United States and Canada, providing a wide array of equipment necessary for industrial, construction, and governmental sectors.
The insider's recent sell-off comes at a time when the stock is trading at $128.85 per share, giving the company a market cap of $3.442 billion. This is interesting to note as the company's price-earnings ratio is 10.52, lower than the industry median of 16.68 and also lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate developed by GuruFocus based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Herc Holdings Inc is modestly undervalued. With a price of $128.85 and a GuruFocus Value of $172.08, Herc Holdings Inc has a price-to-GF-Value ratio of 0.75.
The insider transaction history for Herc Holdings Inc shows that there have been no insider buys over the past year. Meanwhile, there have been 16 insider sells over the same timeframe. This could suggest that insiders believe the stock is currently overvalued, prompting them to sell their shares. However, the fact that the stock is considered modestly undervalued according to the GuruFocus Value could indicate that there is still potential for growth.
It's important for investors to consider these factors when making investment decisions. Insider selling can sometimes be a red flag, but it's also important to consider the overall financial health and prospects of the company. In the case of Herc Holdings Inc, the company's lower than average price-earnings ratio and its modest undervaluation according to the GuruFocus Value could make it an attractive investment opportunity despite the insider selling.
As always, investors should conduct their own research and consider multiple factors before making investment decisions.
