Avis Budget Group (NASDAQ:CAR) Downgraded by Jefferies Financial Group to Hold

Key Points

• Jefferies downgraded Avis Budget from "buy" to "hold" with a $160 price target (implying ~11.4% downside), and the stock faces multiple downgrades overall leaving the consensus rating at "Strong Sell" with an average target of $128.50.
• Q1 results showed a large EPS miss—($8.01) vs. ($6.82) expected—while revenue beat at $2.53 billion (up 4.1% YoY); analysts project FY EPS of about 3.87.
• Notable insider activity included an EVP selling shares and major shareholder Pentwater Capital buying 425,000 shares at roughly $94.26, with insiders reported to own about 50.48% of the company.

Avis Budget Group (NASDAQ:CAR - Get Free Report) was downgraded by stock analysts at Jefferies Financial Group from a "buy" rating to a "hold" rating in a research note issued on Friday. They presently have a $160.00 price target on the business services provider's stock. Jefferies Financial Group's price objective indicates a potential downside of 11.44% from the stock's current price.

A number of other equities analysts have also weighed in on CAR. Morgan Stanley reduced their target price on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating for the company in a research note on Friday, March 6th. Zacks Research cut shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 19th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Avis Budget Group in a report on Wednesday, January 21st. Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research note on Saturday, February 21st. Finally, Barclays downgraded Avis Budget Group from an "equal weight" rating to an "underweight" rating and boosted their price target for the stock from $95.00 to $150.00 in a research report on Monday, April 20th. Four equities research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Strong Sell" and an average target price of $128.50.

Avis Budget Group Stock Down 0.3%

CAR opened at $180.67 on Friday. The stock has a market cap of $6.38 billion, a P/E ratio of -9.48 and a beta of 1.94. Avis Budget Group has a 12 month low of $85.96 and a 12 month high of $847.70. The company has a fifty day simple moving average of $197.79 and a 200 day simple moving average of $154.39.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted its earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share for the quarter, missing the consensus estimate of ($6.82) by ($1.19). The business had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.43 billion. The company's quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the previous year, the company posted ($14.35) EPS. On average, equities research analysts expect that Avis Budget Group will post 3.87 earnings per share for the current fiscal year.

Insider Activity at Avis Budget Group

In related news, EVP Ravi Simhambhatla sold 3,469 shares of Avis Budget Group stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $184.09, for a total transaction of $638,608.21. Following the completion of the sale, the executive vice president owned 13,876 shares of the company's stock, valued at approximately $2,554,432.84. The trade was a 20.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, major shareholder Pentwater Capital Management L bought 425,000 shares of Avis Budget Group stock in a transaction that occurred on Friday, February 20th. The shares were bought at an average cost of $94.26 per share, with a total value of $40,060,500.00. Following the acquisition, the insider directly owned 3,987,100 shares in the company, valued at $375,824,046. This trade represents a 11.93% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold 18,249 shares of company stock valued at $4,014,515 in the last ninety days. Company insiders own 50.48% of the company's stock.

Institutional Investors Weigh In On Avis Budget Group

Several hedge funds have recently bought and sold shares of CAR. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Avis Budget Group by 1,845.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider's stock worth $27,000 after acquiring an additional 203 shares during the period. Quarry LP bought a new position in shares of Avis Budget Group during the fourth quarter worth approximately $27,000. Deseret Mutual Benefit Administrators increased its stake in shares of Avis Budget Group by 102.3% during the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock worth $28,000 after purchasing an additional 88 shares during the period. Basepoint Wealth LLC acquired a new stake in Avis Budget Group during the 4th quarter worth approximately $32,000. Finally, Hantz Financial Services Inc. lifted its holdings in Avis Budget Group by 136.4% during the 3rd quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider's stock worth $41,000 after purchasing an additional 146 shares during the last quarter. 96.35% of the stock is currently owned by institutional investors and hedge funds.

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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