MW Hertz's stock was flat this year. Billionaire Bill Ackman is driving it higher for the second straight day.

By Steve Gelsi

Ackman's Pershing Square Capital bought $46 million in Hertz's stock, which is rallying 17%

Hertz Global Holding Inc.'s stock has been gaining favor of late as investors bet that consumers would potentially pivot to buying more former rental-fleet cars in the face of higher prices for new cars due to tariffs.

Hertz's stock $(HTZ)$ is logging its second straight day of double-digit gains with a 29% jump on Wednesday. On Tuesday, the stock moved into positive territory for the year with a 56% rise.

Hertz's stock is now trading at $7.43 a share, up from a closing level of $3.65 a share on Tuesday.

The stock price has roughly doubled since billionaire Bill Ackman and his hedge fund Pershing Square disclosed the purchase of about $46.5 million in Hertz's stock, or 12.71 million shares, on Wednesday. The purchase amounts to about 4.14% of the rental-car company's shares.

Pershing Square now ranks as the third-largest shareholder of Hertz after Knighthead Capital Management LLC, which holds 181.5 million shares, and BlackRock Fund Advisors, with 18.36 million shares, according to FactSet data.

Pershing Square's stake is just a bit larger than the 12.19 million shares of Hertz held by the Vanguard Group.

Hertz's stock started heating up earlier this month.

On April 3, Hertz and rival Avis Budget Group Inc. $(CAR)$ rallied after President Donald Trump announced sweeping tariffs on goods imported into the United States.

Investors speculated that market prices for cars overall would rise and deliver a boost to the value of the vehicles owned by the rental-car companies as consumers gravitate toward buying used cars. Inflated car prices would also make it easier for Avis and Hertz to sell off their used cars.

Also read: GM's cost for cars made in Mexico or Canada to rise by $4,300 per vehicle and dent profit

Still, if a recession takes hold, Americans may travel less and rent fewer cars.

But for now, Ackman's move on Hertz is lifting the stock for investors.

Also read: Used-car sellers should benefit from tariffs - here's why the stocks are down

-Steve Gelsi

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April 17, 2025 11:23 ET (15:23 GMT)

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