Avis Budget Group (NASDAQ:CAR) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Avis Budget Group from “hold” to “strong sell,” adding to largely negative analyst sentiment. The stock has a consensus “Reduce” rating and an average price target of $125.71.
• Avis Budget Group shares opened at $102.45, well below their 50-day moving average of $122.90 and 200-day moving average of $172.00. The stock’s 12-month range is $85.96 to $847.70.
• The company reported quarterly EPS of $0.98, missing the $2.05 consensus estimate, while revenue fell 1.3% year over year to $3 billion. Institutional investors own approximately 96.35% of the stock.

Avis Budget Group (NASDAQ:CAR - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday, Zacks reports.

A number of other equities research analysts have also recently weighed in on the stock. JPMorgan Chase & Co. cut their price objective on shares of Avis Budget Group from $145.00 to $105.00 and set an "underweight" rating on the stock in a report on Thursday, October 8th. Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Morgan Stanley lowered their target price on shares of Avis Budget Group from $99.00 to $95.00 and set an "equal weight" rating for the company in a report on Friday, September 11th. The Goldman Sachs Group boosted their price target on Avis Budget Group from $85.00 to $95.00 and gave the stock a "sell" rating in a research report on Friday, July 24th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Avis Budget Group in a research report on Monday, August 17th. Five research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $125.71.

Avis Budget Group Stock Performance

Shares of CAR stock opened at $102.45 on Monday. The company's fifty day moving average price is $122.90 and its 200-day moving average price is $172.00. Avis Budget Group has a 12 month low of $85.96 and a 12 month high of $847.70.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The business services provider reported $0.98 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.05 by ($1.07). The company had revenue of $3 billion for the quarter, compared to the consensus estimate of $3.10 billion. During the same period last year, the firm posted $0.10 EPS. Avis Budget Group's quarterly revenue was down 1.3% compared to the same quarter last year. As a group, research analysts expect that Avis Budget Group will post 1.08 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd boosted its position in shares of Avis Budget Group by 1,845.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider's stock valued at $27,000 after buying an additional 203 shares during the last quarter. Hollencrest Capital Management bought a new stake in Avis Budget Group in the 1st quarter worth about $44,000. Allworth Financial LP bought a new stake in Avis Budget Group in the 2nd quarter worth about $77,000. Nykredit A S bought a new stake in Avis Budget Group in the 2nd quarter worth about $80,000. Finally, Blue Trust Inc. raised its position in Avis Budget Group by 3,914.3% in the 1st quarter. Blue Trust Inc. now owns 562 shares of the business services provider's stock worth $82,000 after buying an additional 548 shares during the last quarter. 96.35% of the stock is owned by hedge funds and other institutional investors.

About Avis Budget Group

Avis Budget Group, Inc is a provider of mobility and vehicle-rental services. Through its Avis and Budget brands, the company offers car and truck rentals to business and leisure customers, serving travelers through airport and neighborhood locations as well as digital booking channels.

The company also operates Zipcar, a car-sharing service that provides members with access to vehicles for short-term use. Its brand portfolio has also included Payless, which serves value-oriented rental customers.

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