Herc Holdings Posts 30% Rental Growth While Big Fund Rebalances $4 Million
Key Points
GAMCO Investors sold 34,492 shares of Herc Holdings in the fourth quarter; the estimated transaction value was $4.73 million (based on quarterly average pricing).
Nevertheless, the quarter-end position value actually rose by $29.81 million, reflecting both share sales and price movement.
Post-trade, the fund reported holding 1,066,722 shares valued at $158.28 million.
- 10 stocks we like better than Herc ›
On Feb. 5, GAMCO Investors reported selling 34,492 shares of Herc Holdings (NYSE:HRI) in a fourth-quarter SEC filing, an estimated $4.73 million trade based on quarterly average pricing.
What happened
According to its SEC filing dated Feb. 5, GAMCO Investors sold 34,492 shares of Herc Holdings (NYSE:HRI) during the fourth quarter. The estimated trade size was $4.73 million, based on average closing prices for the quarter. The value of the Herc Holdings stake, meanwhile, increased by $29.81 million in the period, reflecting both the share reduction and price changes (with shares up more than 25% in the period).
What else to know
Following the sale, Herc Holdings represents 1.52% of GAMCO’s reportable U.S. equity AUM.
Top five holdings after the filing:
- NYSE:MLI: $214.36 million (2.1% of AUM)
- NYSE:GATX: $203.12 million (2.0% of AUM)
- NYSE:CR: $196.42 million (1.9% of AUM)
- NYSE:MSGS: $158.65 million (1.5% of AUM)
- NYSE:HRI: $158.28 million (1.5% of AUM)
As of Feb. 4, shares of Herc Holdings were priced at $169.38, down 15.4% over the past year and well underperforming the S&P 500’s roughly 14% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Price (as of Feb. 4) | $169.38 |
| Market capitalization | $5.73 billion |
| Revenue (TTM) | $3.88 billion |
| Dividend yield | 1.62% |
Company snapshot
- Herc Holdings provides equipment rental services, including aerial, earthmoving, material handling, trucks, trailers, and specialty solutions such as power generation, climate control, and remediation equipment.
- The company generates revenue primarily through short- and long-term equipment rentals, ancillary services (repair, maintenance, equipment management, safety training), and sales of used equipment and contractor supplies.
- It serves a diverse customer base across non-residential and residential construction, specialty trades, industrial manufacturing, infrastructure, government, and commercial facility sectors.
Herc Holdings is a leading equipment rental provider with a broad portfolio of products and services tailored to construction, industrial, and specialty markets. The company leverages its extensive branch network and value-added services to support contractors, industrial clients, and institutional customers. Its scale and focus on solution-based offerings provide a competitive advantage in meeting complex project needs and driving recurring revenue streams.
What this transaction means for investors
Herc sits at the intersection of infrastructure spending, fleet scale, and operational leverage, which helps explain why it continues to command a meaningful spot alongside GAMCO’s other industrial and asset-heavy holdings like GATX and Mueller Industries.
Operationally, the latest quarterly results reinforced that thesis. Equipment rental revenue climbed 30% year over year to $1.12 billion, pushing total revenue up 35% to $1.30 billion. Adjusted EBITDA rose 24% to $551 million, even as margins compressed due to acquisition integration costs tied to H&E Equipment Services. That pressure looks temporary; management completed full IT integration during the quarter and reaffirmed full-year guidance, signaling confidence that synergies and utilization improvements are still ahead.
The sale itself appears more like portfolio housekeeping than a shift in conviction. Herc still represents roughly the same weight as other core GAMCO positions, so exposure was effectively just reduced and certainly not abandoned. With shares down more than 15% over the past year despite accelerating revenue and reaffirmed guidance, the disconnect is notable. But ultimately, Herc remains a scaled operator benefiting from infrastructure demand and fleet economics, even as short-term integration noise creates volatility.
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American Express is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mueller Industries. The Motley Fool recommends Herc. The Motley Fool has a disclosure policy.
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