Shares of vehicle rental service company Hertz Global Holdings Inc (NASDAQ:HTZ) are moving higher Wednesday after the company announced a buyback.
What To Know: The Hertz board approved a new $2 billion share repurchase program in addition to the $2 billion buyback that was announced in November. With approximately $200 million remaining on the previous buyback, Hertz now has a total of $2.2 billion available under the share repurchase programs.
"The increased authorization underscores the confidence that management and the board have in the direction of the Company," said Stephen Scherr, CEO of Hertz.
Share repurchases will be made at management's discretion, as the company did not put any time restraints on the buyback. The authorization does not obligate Hertz to acquire any particular amount of stock and can be discontinued at any time.
"We remain committed to our capital allocation strategy that utilizes organic cash flows and appropriate leverage to invest in technology, modernize our fleet, and return capital to shareholders," Scherr concluded.
Hertz had corporate liquidity of $2.7 billion as of March 31st, including $1.5 billion in unrestricted cash.
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HTZ Price Action: Hertz has traded between $46 and $14.15 over 52 weeks.
The stock was up 4.7% at $18.05 at press time, according to data from Benzinga Pro.
Photo: Steven Damron from Flickr.
