This post was originally published on this site
Hertz Global (NASDAQ:HTZ) shares jumped 5% in pre-open trading Wednesday after the company announced that its Board of Directors approved a new $2 billion share repurchase program.
The new repurchase program is in addition to the $0.2 billion remaining under the previous $2 billion authorization, giving the company a total of $2.2 billion to spend on share repurchases.
The $2.2 billion buyback authorization compares to the company’s entire market cap of $7.1 billion, or 31% of the current market cap.
Hertz repurchased approximately 88 million shares as of June 14, 2022, under its old $2.0 billion plan, for about $1.8 billion. The prior plan was announced in November 2021.
“The increased authorization underscores the confidence that management and the board have in the direction of the Company,” said Stephen Scherr, Hertz’s chief executive officer. “We remain committed to our capital allocation strategy that utilizes organic cash flows and appropriate leverage to invest in technology, modernize our fleet, and return capital to shareholders.”
Shares of Hertz are down 31% year-to-date.
