Shares of Hertz Global Holdings Inc. shot up 7.7% in premarket trading Wednesday, after the auto rental company announced a new $2.0 billion stock repurchase program. The new program comes seven months after the last $2.0 billion buyback program was announced, in November 2021. With about $200 million remaining in the previous buyback program, the company can now repurchase up to $2.2 billion worth of its stock, which represents about 31% of Hertz’s market capitalization of $7.10 billion as of Tuesday’s stock closing prices. “The increased authorization underscores the confidence that management and the board have in the direction of the company,” said Chief Executive Stephen Scherr. Hertz’s stock has tumbled 31.0% year to date through Tuesday, while shares of rival auto rental company Avis Budget Group Inc. has dropped 22.7% and the S&P 500 has lost 21.6%.
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