Hertz Stock Slides on Pershing Square Exit, S&P Credit Downgrade

Hertz Global Holdings (HTZ) shares fell 2.8% in after-hours trading on Thursday, dropping to $2.28 after a high-profile institutional investor exit and a credit rating downgrade rattled market confidence in the car-rental company.

Pershing Square Sells Entire Stake

The primary catalyst for the decline was the disclosure that Bill Ackman's Pershing Square hedge fund had completely exited its position in Hertz during July 2026. On a conference call, Ackman described Hertz’s June equity offering as “bungled and unnecessary.”

Adding to the critique, Pershing Square CIO Ryan Israel stated that the firm had “lost confidence in Hertz’s management team,” according to the source. The departure of a significant institutional shareholder like Pershing Square often signals deep concerns about a company's strategy and future prospects, weighing heavily on investor sentiment.

Credit Downgrade Cites Debt Risk

The news from Pershing Square compounded pressure from the previous day, when S&P Global Ratings downgraded Hertz’s credit rating to 'CCC+' from 'B-'. The ratings agency cited an “unsustainable capital structure” and “elevated refinancing risk” as key factors for the decision.

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S&P highlighted significant corporate debt maturities looming for the company, including:

• Approximately $2.8 billion due in 2028
• An additional $2.5 billion coming due in 2029

Market Reversal

Thursday's late-day slide marked a sharp reversal for Hertz stock, which had opened the session at $2.68 and traded as high as $2.95. The earlier gains were reportedly fueled by continued interest from retail traders following the company's second-quarter earnings beat last week. However, the combination of the credit downgrade and the institutional exit proved sufficient to erase those gains.