Herc Stock Is Down 5% as One Fund Makes $6 Million Bet. Is Now the Time to Buy?

By Jonathan Ponciano – Mar 10, 2026 at 4:49PM ESTKey PointsSoviero Asset Management added 38,000 shares of Herc Holdings in the fourth quarter.The quarter-end position value increased by $5.64 million due to the new purchase.The new position represents nearly 3% of the fund’s AUM, placing it outside the fund’s top five holdings.Soviero Asset Management disclosed a new position in Herc Holdings (HRI 5.37%) in its February 17, 2026, SEC filing, acquiring 38,000 shares in a trade estimated at $5.64 million based on quarter-end position values.What happenedAccording to a SEC filing dated February 17, 2026, Soviero Asset Management disclosed a new stake in Herc Holdings, acquiring 38,000 shares. The position’s quarter-end value stood at approximately $5.64 million.What else to knowThis was a newly initiated position, representing 2.7% of Soviero’s reported U.S. equity assets under management as of December 31, 2025.Top holdings after the filing:NYSE:CLF: $6.37 million (3.3% of AUM)NASDAQ:AMZN: $6.00 million (3.1% of AUM)NASDAQ:VISN: $5.80 million (3.0% of AUM)NYSE:HRI: $5.64 million (2.7% of AUM)NYSE:PATH: $5.24 million (2.5% of AUM)As of Tuesday, Herc Holdings shares were priced at $114.90, down about 5% over the past year, and well underperforming the S&P 500’s roughly 21% gain in the same period.Company overviewMetricValueRevenue (TTM)$4.3 billionNet Income (TTM)$1.0 millionDividend Yield2%Price (as of Tuesday)$114.90Company snapshotHerc Holdings offers equipment rental solutions, including aerial, earthmoving, material handling, trucks, trailers, and specialty equipment, as well as ancillary services such as repair, maintenance, and equipment management.The firm generates revenue primarily through equipment rental fees, value-added services, and sales of used equipment and contractor supplies.It serves non-residential and residential construction, specialty contractors, industrial manufacturing, infrastructure, government, and commercial facility sectors.Herc Holdings is a leading equipment rental supplier with a broad portfolio of products and services tailored to construction, industrial, and specialty markets. The company leverages its national footprint and value-added service offerings to support a diverse customer base across multiple industries. Its integrated approach and specialized solutions position it competitively within the rental and leasing services sector.What this transaction means for investorsHerc Holding has an extremely volatile run over the past year, and even over the past month, with shares crashing more than 35% following a steep rally through mid-February.Much of that decline has come since the company’s latest earnings report on February 17. Transaction costs associated with H&E (the largest acquisition in the rental industry) wiped out most of 2025's GAAP net income, interest expense nearly doubled after new debt facilities funded the deal, and integration-related redundancies pressured margins.Nevertheless, what matters more is what's coming. Management is guiding for $2 billion to $2.1 billion in adjusted EBITDA in 2026, up meaningfully from $1.8 billion last year, with equipment rental revenue targeted between $4.275 billion and $4.4 billion. The company says run-rate cost synergies are already ahead of schedule, and revenue synergies haven't meaningfully kicked in yet. With that in mind, it’s not surprising that a fund like Soviero would step in, but the risk, of course, certainly remains.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedHercNYSE: HRI$114.66(-5.37%)-$6.50*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.