Why Hertz Stock Jumped Another 19% on Monday

Why Hertz Stock Jumped Another 19% on Monday

Shares of bankrupt vehicle-rental company Hertz Global Holdings (NYSE: HTZ) jumped almost 20% in early Monday trading -- likely riding some momentum from Friday's $1.65 billion debtor-in-possession financing -- before reversing and giving back all those gains. After social distancing crippled travel and Hertz's rental demand, the company filed for bankruptcy protection on May 22 in a move that generally wipes out shareholders. Despite the likelihood of current Hertz shares ending up worthless for common shareholders, there continues to be a strange disconnect between the stock price and the reality of Hertz being a bankrupt company.