Why Hertz Global Holdings, Inc. Stock Soared Today

Image source: Hertz Global.

What happened

Shares of Hertz Global Holdings, Inc. (NYSE: HTZ) were up 10% as of 2:00 p.m. EST Tuesday following reports the rental car specialist may be a takeover target.

So what

More specifically, Hertz is spiking amid renewed rumors that activist investor Carl Icahn is in talks with other potential bidders in an effort to acquire the ailing company.

Now what

That wouldn't be entirely surprising considering Icahn bought 15 million shares of Hertz last month, after the stock crashed as much as 52% following its painful quarterly earnings report and reduced full-year guidance. In doing so, Icahn more than doubled his stake, and increased his share of the company to more than a third.

However, this hardly guarantees a deal will be made. In the meantime, I think investors would be wise to focus on Hertz's actual business when formulating an investment thesis.

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Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of Hertz Global Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.