Avis Budget Group, Inc. (NASDAQ:CAR) Given Consensus Recommendation of "Strong Sell" by Analysts

Key Points

• Analysts have issued a consensus "Strong Sell" on Avis Budget (10 firms covering the stock: six sell, four hold), with an average 12‑month price target of about $125.00.
• Major shareholder Pentwater Capital bought 425,000 shares at ~$94.26 (≈$40.06M), boosting its stake to ~3.99M shares, while director Lynn Krominga sold 1,950 shares at $91.54 and insiders sold ~18,249 shares last quarter.
• Avis reported a Q1 EPS loss of ($8.01), missing the consensus ($6.82) by $1.19, though revenue of $2.53 billion beat estimates of $2.43 billion.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) have received a consensus rating of "Strong Sell" from the ten ratings firms that are presently covering the company, MarketBeat Ratings reports. Six investment analysts have rated the stock with a sell rating and four have assigned a hold rating to the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $125.00.

Several research analysts have recently commented on CAR shares. Barclays lowered Avis Budget Group from an "equal weight" rating to an "underweight" rating and lifted their target price for the stock from $95.00 to $150.00 in a research report on Monday, April 20th. Zacks Research lowered Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $125.00 target price on shares of Avis Budget Group in a research report on Friday. JPMorgan Chase & Co. decreased their target price on Avis Budget Group from $165.00 to $140.00 and set an "underweight" rating for the company in a research report on Friday. Finally, The Goldman Sachs Group set a $85.00 target price on Avis Budget Group in a research report on Monday, February 23rd.

Insider Buying and Selling

In related news, Director Lynn Krominga sold 1,950 shares of the business's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $91.54, for a total transaction of $178,503.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Pentwater Capital Management L acquired 425,000 shares of Avis Budget Group stock in a transaction that occurred on Friday, February 20th. The shares were bought at an average price of $94.26 per share, with a total value of $40,060,500.00. Following the transaction, the insider directly owned 3,987,100 shares in the company, valued at approximately $375,824,046. This trade represents a 11.93% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have sold 18,249 shares of company stock worth $4,014,515. 50.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC boosted 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 valued at $72,000 after purchasing an additional 70 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in Avis Budget Group by 26.5% during 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 period. Deseret Mutual Benefit Administrators boosted its position in Avis Budget Group by 102.3% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock valued at $28,000 after purchasing an additional 88 shares during the period. Oregon Public Employees Retirement Fund boosted its position in Avis Budget Group by 3.0% during 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 during the period. Finally, State of Michigan Retirement System boosted its position in Avis Budget Group by 2.5% during 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 during the period. Institutional investors and hedge funds own 96.35% of the company's stock.

Avis Budget Group Trading Down 9.3%

Shares of CAR opened at $168.29 on Tuesday. The firm has a market cap of $5.94 billion, a price-to-earnings ratio of -8.83 and a beta of 1.92. The stock has a 50 day moving average of $197.79 and a 200-day moving average of $154.41. Avis Budget Group has a 52 week low of $85.96 and a 52 week high of $847.70.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its 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 firm had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.43 billion. The company's quarterly revenue was up 4.1% on a year-over-year basis. During the same period last year, the firm posted ($14.35) EPS. On average, sell-side analysts predict that Avis Budget Group will post 3.87 earnings per share for the current fiscal year.

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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