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

Key Points

• Analysts have a bearish consensus on Avis Budget Group, with five sell and five hold ratings producing an average “Reduce” recommendation and a $132.75 price target.
• Avis reported weaker-than-expected quarterly results, posting $0.98 in adjusted EPS versus $2.05 expected and $3.0 billion in revenue versus $3.1 billion estimated; revenue fell 1.3% year over year.
• The company is facing heightened litigation-related attention over alleged market manipulation involving its stock, though the case remains ongoing and potential financial liability is uncertain. Institutional investors own 96.35% of Avis shares.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) has earned a consensus recommendation of "Reduce" from the ten ratings firms that are currently covering the company, MarketBeat Ratings reports. Five analysts have rated the stock with a sell recommendation and five have given a hold recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $132.75.

Several research analysts have recently issued reports on CAR shares. Jefferies Financial Group downgraded Avis Budget Group from a "buy" rating to a "hold" rating and lifted their price target for the stock from $112.00 to $160.00 in a research note on Friday, May 1st. Barclays set a $160.00 price objective on shares of Avis Budget Group and gave the company an "equal weight" rating in a research note on Monday, June 8th. Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Weiss Ratings restated a "sell (d-)" rating on shares of Avis Budget Group in a research report on Wednesday, May 20th. Finally, Zacks Research lowered shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd.

Avis Budget Group Price Performance

NASDAQ CAR opened at $139.58 on Thursday. Avis Budget Group has a 1-year low of $85.96 and a 1-year high of $847.70. The company has a market capitalization of $4.93 billion, a P/E ratio of -7.68 and a beta of 1.92. The business has a 50 day moving average price of $162.91 and a 200 day moving average price of $168.25.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted its earnings results on Tuesday, July 28th. The business services provider reported $0.98 EPS for the quarter, missing analysts' consensus estimates of $2.05 by ($1.07). The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $3.10 billion. The business's quarterly revenue was down 1.3% compared to the same quarter last year. During the same quarter last year, the firm posted $0.10 EPS. On average, research analysts expect that Avis Budget Group will post 1.69 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Avis Budget Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Parallel Advisors LLC boosted its stake in shares of Avis Budget Group by 11.6% during the first quarter. Parallel Advisors LLC now owns 587 shares of the business services provider's stock valued at $86,000 after acquiring an additional 61 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Avis Budget Group by 19.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock worth $72,000 after purchasing an additional 70 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Avis Budget Group by 26.5% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider's stock valued at $58,000 after purchasing an additional 76 shares during the last quarter. Oregon Public Employees Retirement Fund lifted its holdings in Avis Budget Group by 3.0% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 3,474 shares of the business services provider's stock valued at $507,000 after purchasing an additional 100 shares in the last quarter. Finally, State of Michigan Retirement System lifted its holdings in Avis Budget Group by 2.5% in the 1st quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider's stock valued at $594,000 after purchasing an additional 100 shares in the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

Key Stories Impacting Avis Budget Group

Here are the key news stories impacting Avis Budget Group this week:

• Negative Sentiment: The lawsuit, filed in federal court, alleges that Pentwater Capital Management and founder Matthew Halbower violated U.S. securities laws through alleged market manipulation and misleading statements related to Avis’s stock, including claims involving a short squeeze. Investors who purchased or acquired Avis securities between February 20, 2025, and April 21, 2026—including shares bought to cover short positions—may be included. Pomerantz class action announcement
• Negative Sentiment: Several firms, including Rosen, Kaplan Fox, Bernstein Liebhard, Kahn Swick & Foti, Levi & Korsinsky, and The Gross Law Firm, are soliciting affected investors. The repeated announcements increase visibility around the allegations and could reinforce concerns about potential litigation costs, damages, reputational harm, and management distraction for Avis. Rosen investor notice
• Neutral Sentiment: The September 29 deadline is primarily a procedural step for investors seeking lead-plaintiff status; it does not establish that Avis or Pentwater is liable. The financial impact remains uncertain because the case is ongoing.
• Negative Sentiment: Separately, Avis’s latest reported quarter missed analyst expectations on both earnings and revenue, while revenue declined year over year. That weaker operating performance adds to the stock’s near-term pressure alongside the litigation headlines.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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