Avis Budget Group, Inc. (NASDAQ:CAR) Given Average Rating of "Reduce" by Analysts

Key Points

• Shares of Avis Budget Group have a consensus recommendation of "Reduce" from nine brokerages (four sell, five hold) with an average 12‑month target price of $115.
• Several analysts have recently cut targets and downgraded the stock — notably Barclays lowered its target to $95 and Morgan Stanley to $97 — reflecting growing caution among brokers.
• Major shareholder Pentwater Capital purchased 425,000 shares at $94.26 (an 11.93% increase in its stake), while institutional investors are reported to own about 96.35% of the stock, signaling heavy institutional positioning.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) have been given a consensus recommendation of "Reduce" by the nine brokerages that are currently covering the stock, MarketBeat reports. Four investment analysts have rated the stock with a sell recommendation and five have assigned a hold recommendation to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $115.00.

Several equities research analysts recently issued reports on the company. Barclays reduced their price objective on Avis Budget Group from $120.00 to $95.00 and set an "equal weight" rating for the company in a research note on Thursday, February 26th. Weiss Ratings reissued a "sell (d)" rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Wall Street Zen downgraded Avis Budget Group from a "hold" rating to a "sell" rating in a research note on Saturday, February 21st. Deutsche Bank Aktiengesellschaft downgraded Avis Budget Group from a "buy" rating to a "hold" rating and set a $128.00 price target for the company. in a research note on Monday. Finally, Morgan Stanley cut their price target on Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating for the company in a research note on Friday, March 6th.

Avis Budget Group Trading Up 13.7%

Shares of Avis Budget Group stock opened at $297.08 on Friday. The stock has a 50-day moving average price of $125.87 and a 200 day moving average price of $133.45. The company has a market cap of $10.50 billion, a P/E ratio of -11.70 and a beta of 1.94. Avis Budget Group has a 1 year low of $66.69 and a 1 year high of $297.98.

Insider Transactions at Avis Budget Group

In other news, major shareholder Pentwater Capital Management L purchased 425,000 shares of the business's stock in a transaction dated Friday, February 20th. The stock was bought at an average cost of $94.26 per share, with a total value of $40,060,500.00. Following the purchase, the insider directly owned 3,987,100 shares of the company's stock, valued at approximately $375,824,046. This trade represents a 11.93% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Lynn Krominga sold 1,950 shares of the firm's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $91.54, for a total value of $178,503.00. The SEC filing for this sale provides additional information. 52.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Avis Budget Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CAR. ING Groep NV raised its stake in shares of Avis Budget Group by 440.2% during the 3rd quarter. ING Groep NV now owns 1,035,000 shares of the business services provider's stock worth $166,195,000 after purchasing an additional 843,400 shares in the last quarter. UBS Group AG raised its stake in shares of Avis Budget Group by 37.3% during the 4th quarter. UBS Group AG now owns 2,964,807 shares of the business services provider's stock worth $380,444,000 after purchasing an additional 804,814 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in shares of Avis Budget Group during the 3rd quarter worth about $97,951,000. National Bank of Canada FI raised its stake in shares of Avis Budget Group by 166.7% during the 2nd quarter. National Bank of Canada FI now owns 880,239 shares of the business services provider's stock worth $148,804,000 after purchasing an additional 550,239 shares in the last quarter. Finally, Morgan Stanley raised its stake in shares of Avis Budget Group by 38.1% during the 4th quarter. Morgan Stanley now owns 1,975,675 shares of the business services provider's stock worth $253,519,000 after purchasing an additional 545,574 shares in the last quarter. 96.35% of the stock is owned by hedge funds and other institutional investors.

Avis Budget Group Company Profile

Avis Budget Group, Inc operates as a leading global provider of vehicle rental and mobility solutions. Through its two core brands, Avis® and Budget®, the company offers a broad range of rental options including daily, weekly and monthly car rentals for leisure and business travelers. In addition to traditional airport and off-airport car rental services, Avis Budget Group delivers innovative mobility platforms such as car-sharing programs and connected fleet solutions designed to meet the evolving needs of corporate, government and individual customers.

The company's roots trace back to Avis Rent a Car, founded in 1946, and Budget Rent a Car, established in 1958.

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