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

Key Points

• Avis Budget Group, Inc. has received a consensus rating of "Reduce" from analysts, with most ratings indicating a cautious outlook on the stock's performance.
• Recent insider transactions include substantial share sales by Director Bernardo Hees and EVP Edward P. Linnen, indicating a decrease in personal investment confidence.
• The company's latest quarterly earnings report showed a significant miss in EPS estimates, with a reported EPS of $0.10 compared to the expected $2.02, alongside a negative net margin of 19.06%.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) have been assigned a consensus rating of "Reduce" from the seven ratings firms that are presently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and one has given a buy recommendation to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $143.80.

CAR has been the topic of a number of recent research reports. The Goldman Sachs Group reaffirmed a "sell" rating and set a $105.00 price target (up from $87.00) on shares of Avis Budget Group in a research report on Friday, August 1st. Bank of America reaffirmed an "underperform" rating and issued a $113.00 price target (down from $120.00) on shares of Avis Budget Group in a research note on Wednesday, August 20th. Barclays lifted their target price on Avis Budget Group from $105.00 to $150.00 and gave the stock an "equal weight" rating in a report on Monday, August 4th. Zacks Research raised Avis Budget Group from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 21st. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $196.00 price target (up previously from $130.00) on shares of Avis Budget Group in a report on Thursday, July 10th.

Insider Activity at Avis Budget Group

In other Avis Budget Group news, Director Bernardo Hees sold 402,200 shares of the stock in a transaction on Monday, August 4th. The stock was sold at an average price of $156.59, for a total transaction of $62,980,498.00. Following the sale, the director owned 116,521 shares of the company's stock, valued at approximately $18,246,023.39. This trade represents a 77.54% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Edward P. Linnen sold 10,000 shares of the business's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $156.83, for a total value of $1,568,300.00. Following the transaction, the executive vice president owned 40,915 shares in the company, valued at approximately $6,416,699.45. This represents a 19.64% decrease in their ownership of the stock. The disclosure for this sale can be found here. 52.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Avis Budget Group

Institutional investors have recently modified their holdings of the business. Fifth Third Bancorp boosted its holdings in Avis Budget Group by 32.6% during the 2nd quarter. Fifth Third Bancorp now owns 228 shares of the business services provider's stock worth $39,000 after acquiring an additional 56 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of Avis Budget Group by 19.6% in the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock worth $72,000 after buying an additional 70 shares during the period. State of Michigan Retirement System boosted its holdings in shares of Avis Budget Group by 2.5% in the 2nd quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider's stock worth $689,000 after purchasing an additional 100 shares during the period. Retirement Systems of Alabama raised its position in Avis Budget Group by 0.6% during the 2nd quarter. Retirement Systems of Alabama now owns 20,646 shares of the business services provider's stock valued at $3,490,000 after purchasing an additional 117 shares in the last quarter. Finally, Quadrant Capital Group LLC grew its stake in Avis Budget Group by 4.7% during the 2nd quarter. Quadrant Capital Group LLC now owns 2,624 shares of the business services provider's stock worth $444,000 after buying an additional 117 shares during the last quarter. Institutional investors and hedge funds own 96.35% of the company's stock.

Avis Budget Group Price Performance

Shares of Avis Budget Group stock traded up $0.07 during trading hours on Monday, reaching $157.73. The company's stock had a trading volume of 688,600 shares, compared to its average volume of 723,469. The stock has a market cap of $5.55 billion, a P/E ratio of -2.49 and a beta of 2.12. The firm has a 50 day moving average price of $166.63 and a 200-day moving average price of $128.15. Avis Budget Group has a one year low of $54.03 and a one year high of $212.81.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The business services provider reported $0.10 earnings per share for the quarter, missing analysts' consensus estimates of $2.02 by ($1.92). The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.02 billion. Avis Budget Group had a negative return on equity of 14.74% and a negative net margin of 19.06%.The firm's revenue was down .3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.41 EPS. As a group, sell-side analysts forecast that Avis Budget Group will post 8.91 EPS for the current fiscal year.

About Avis Budget Group

Avis Budget Group, Inc engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean.