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

Key Points

• Avis Budget Group has a consensus analyst rating of "Reduce" from 10 research firms, with five sell ratings and five hold ratings. The average 1-year price target is $125.25.
• The company reported Q1 earnings of -$8.01 per share, missing estimates, though revenue of $2.53 billion came in above expectations and rose 4.1% year over year.
• Executives have been selling shares recently, including two EVP transactions on April 30, while institutional investors still own 96.35% of the company’s stock.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) has earned a consensus rating of "Reduce" from the ten research firms that are covering the stock, Marketbeat reports. Five analysts have rated the stock with a sell recommendation and five have assigned a hold recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $125.25.

Several equities analysts recently weighed in on CAR shares. Wall Street Zen upgraded shares of Avis Budget Group from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a research report on Wednesday, May 20th. The Goldman Sachs Group set a $85.00 target price on Avis Budget Group in a research report on Monday, February 23rd. Morgan Stanley upped their target price on Avis Budget Group from $97.00 to $99.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 20th. Finally, Susquehanna upped their target price on Avis Budget Group from $105.00 to $140.00 and gave the stock a "neutral" rating in a research report on Friday, May 8th.

Avis Budget Group Stock Performance

NASDAQ CAR opened at $175.84 on Friday. Avis Budget Group has a one year low of $85.96 and a one year high of $847.70. The company's 50 day moving average price is $220.90 and its 200 day moving average price is $155.96. The firm has a market capitalization of $6.21 billion, a price-to-earnings ratio of -9.23 and a beta of 1.91.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported ($8.01) EPS for the quarter, missing the consensus estimate of ($6.82) by ($1.19). The company had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $2.43 billion. The business's revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter last year, the firm earned ($14.35) EPS. Sell-side analysts forecast that Avis Budget Group will post 2.93 EPS for the current fiscal year.

Insider Buying and Selling at Avis Budget Group

In other Avis Budget Group news, EVP Edward P. Linnen sold 9,483 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $182.32, for a total value of $1,728,940.56. Following the completion of the sale, the executive vice president owned 37,932 shares of the company's stock, valued at $6,915,762.24. This trade represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Ravi Simhambhatla sold 3,469 shares of Avis Budget Group stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $184.09, for a total transaction of $638,608.21. Following the sale, the executive vice president directly owned 13,876 shares in the company, valued at $2,554,432.84. This trade represents a 20.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 16,299 shares of company stock valued at $3,836,012 over the last 90 days. 50.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Avis Budget Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CAR. EverSource Wealth Advisors LLC lifted its holdings in Avis Budget Group by 19.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock valued at $72,000 after acquiring an additional 70 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings 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 acquiring 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 acquiring an additional 100 shares during the last quarter. State of Michigan Retirement System boosted its holdings in Avis Budget Group by 2.5% during the first quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider's stock worth $594,000 after buying an additional 100 shares in the last quarter. Finally, PNC Financial Services Group Inc. boosted its holdings in Avis Budget Group by 7.8% during the third quarter. PNC Financial Services Group Inc. now owns 1,460 shares of the business services provider's stock worth $234,000 after buying an additional 106 shares in the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

About Avis Budget Group

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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