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

Key Points

• Avis Budget Group has received a consensus recommendation of "Hold" from six research firms, with a price target averaging $131.20.
• Analyst ratings vary, with Goldman Sachs downgrading the stock to "Sell" and Deutsche Bank upgrading it to "Buy" with a revised price objective of $196.00.
• The company's recent earnings report showed a significant miss on EPS, reporting $0.10 compared to consensus estimates of $2.02, while revenue was $3.04 billion, slightly above expectations.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) has received an average recommendation of "Hold" from the six research firms that are covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and one has given a buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $140.20.

A number of brokerages recently issued reports on CAR. The Goldman Sachs Group reissued a "sell" rating and issued a $105.00 price objective (up from $87.00) on shares of Avis Budget Group in a research note on Friday. Wall Street Zen raised shares of Avis Budget Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 3rd. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $155.00 price objective on shares of Avis Budget Group in a research note on Thursday. Barclays lifted their price objective on shares of Avis Budget Group from $105.00 to $150.00 and gave the company an "equal weight" rating in a research note on Monday. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $196.00 price objective (up from $130.00) on shares of Avis Budget Group in a research note on Thursday, July 10th.

Avis Budget Group Stock Down 2.2%

Shares of CAR traded down $3.61 during mid-day trading on Friday, hitting $160.46. 1,990,631 shares of the company's stock were exchanged, compared to its average volume of 1,204,987. Avis Budget Group has a 52 week low of $54.03 and a 52 week high of $212.81. The stock's 50-day simple moving average is $161.03 and its 200-day simple moving average is $111.17. The firm has a market cap of $5.65 billion, a price-to-earnings ratio of -2.54 and a beta of 2.19.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last announced its earnings results on Tuesday, July 29th. The business services provider reported $0.10 EPS for the quarter, missing the consensus estimate of $2.02 by ($1.92). Avis Budget Group had a negative return on equity of 14.74% and a negative net margin of 19.06%. The business had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $3.02 billion. During the same period in the prior year, the business posted $0.41 earnings per share. The firm's revenue for the quarter was down .3% compared to the same quarter last year. Analysts forecast that Avis Budget Group will post 8.91 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Avis Budget Group

Several hedge funds and other institutional investors have recently bought and sold shares of CAR. Fifth Third Bancorp raised its holdings in shares of Avis Budget Group by 32.6% during the second quarter. Fifth Third Bancorp now owns 228 shares of the business services provider's stock valued at $39,000 after purchasing an additional 56 shares during the period. Retirement Systems of Alabama increased its position in shares of Avis Budget Group by 0.6% during the second quarter. Retirement Systems of Alabama now owns 20,646 shares of the business services provider's stock worth $3,490,000 after acquiring an additional 117 shares in the last quarter. SummerHaven Investment Management LLC increased its position in shares of Avis Budget Group by 2.1% during the first quarter. SummerHaven Investment Management LLC now owns 7,623 shares of the business services provider's stock worth $579,000 after acquiring an additional 160 shares in the last quarter. Quadrant Capital Group LLC increased its position in shares of Avis Budget Group by 41.0% during the fourth quarter. Quadrant Capital Group LLC now owns 681 shares of the business services provider's stock worth $55,000 after acquiring an additional 198 shares in the last quarter. Finally, Xponance Inc. increased its position in shares of Avis Budget Group by 7.8% during the first quarter. Xponance Inc. now owns 2,922 shares of the business services provider's stock worth $222,000 after acquiring an additional 211 shares in the last quarter. Institutional investors and hedge funds own 96.35% of the company's stock.

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.