MW Hertz's stock was flat this year. Now billionaire Bill Ackman is driving it higher.

By Steve Gelsi

Bill Ackman's Pershing Square Capital buys $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 more used-auto purchases of ex-fleet cars in the face of higher new-car costs due to tariffs.

Now Hertz's stock $(HTZ)$ has pushed its way into positive territory for the year with a 17% rally on Wednesday.

The stock got a boost from billionaire Bill Ackman, whose hedge fund Pershing Square disclosed the purchase of about $46.5 million in Hertz stock, or 12.71 million shares. The purchase amounts to about 4.14% of the car rental company's shares.

Pershing Square now ranks as the third-largest shareholder of Hertz after the 181.5 million shares held by Knighthead Capital Management LLC, and the 18.36 million shares owned by BlackRock Fund Advisors, 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.

While Hertz's stock is still trading about 35% below its level from a year ago, its stock - along with shares of rival Avis Budget Group Inc. $(CAR)$ - rallied on April 3 after President Donald Trump announced more tariffs on goods coming into the U.S.

Investors speculated that market prices for cars overall would rise and deliver a boost to the value of the autos owned by the rental-car companies as consumers gravitate toward used-car purchases. 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

Prior to Wednesday's trading, Hertz's stock had gained traction lately, but it was still down fractionally so far in 2025.

Avis stock rose 2.3% on Wednesday, trimming its year-to-date stock loss to 11.6%.

To be sure, 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 16, 2025 10:52 ET (14:52 GMT)

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