Shares of Hertz Global Holdings Inc. HTZ, +4.55% surged 6.8% in premarket trading Monday, after the car rental company announced a new stock repurchase program of up to $2.0 billion. The company said the new program, which is effective immediately and has not time limit, includes the $200 million remaining in the previous program. The program represents nearly 18% of the company’s market capitalization of $11.30 billion as of Friday’s close. “The repurchase program allows for ongoing and profitable investment in the business while utilizing moderate balance sheet leverage and facilitating opportunistic share repurchases,” the company said in a statement. Hertz’s stock moved its listing to the Nasdaq as of Nov. 9, after trading over the counter since the company emerged from bankruptcy. Hertz’s stock has dropped 23.1% over the past month while shares of rival Avis Budget Group Inc. CAR, +9.07% have soared 66.7% and the S&P 500 SPX, +0.94% has inched 0.2% lower.
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