Avis Budget Group (NASDAQ:CAR) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Avis Budget Group to “strong sell” from “hold,” adding to a generally negative analyst outlook. The stock has an average MarketBeat rating of “Reduce,” with a consensus price target of $132.75.
• Avis reported a significant quarterly earnings miss, with EPS of $0.98 versus the $2.05 consensus estimate and revenue of approximately $3.0 billion versus $3.10 billion expected. Revenue declined 1.3% year over year.
• Despite fleet reductions, record vehicle utilization and improved adjusted EBITDA, investors remain concerned about soft rental demand, weak liquidity and high leverage. Institutional investors own approximately 96.35% of the company’s stock.

Avis Budget Group (NASDAQ:CAR - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday,Zacks.com reports.

Several other equities analysts have also recently commented on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Avis Budget Group in a report on Wednesday, May 20th. The Goldman Sachs Group boosted their target price on Avis Budget Group from $85.00 to $95.00 and gave the company a "sell" rating in a research note on Friday, July 24th. JPMorgan Chase & Co. upped their target price on Avis Budget Group from $155.00 to $170.00 and gave the stock an "underweight" rating in a research report on Tuesday, June 23rd. Wall Street Zen lowered Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Susquehanna boosted their price target on Avis Budget Group from $105.00 to $140.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. Five analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $132.75.

Avis Budget Group Trading Up 1.6%

Shares of NASDAQ CAR opened at $141.13 on Monday. Avis Budget Group has a one year low of $85.96 and a one year high of $847.70. The business has a 50-day moving average price of $166.78 and a two-hundred day moving average price of $167.62. The firm has a market capitalization of $4.99 billion, a PE ratio of -7.77 and a beta of 1.92.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its earnings results on Tuesday, July 28th. The business services provider reported $0.98 earnings per share for the quarter, missing analysts' consensus estimates of $2.05 by ($1.07). The firm had revenue of $3 billion during the quarter, compared to the consensus estimate of $3.10 billion. Avis Budget Group's revenue for the quarter was down 1.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.10 EPS. Research analysts anticipate that Avis Budget Group will post 1.69 EPS for the current year.

Institutional Trading of Avis Budget Group

Large investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd grew its holdings in 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 valued at $27,000 after purchasing an additional 203 shares during the last quarter. Quarry LP bought a new position in Avis Budget Group in the 4th quarter worth $27,000. Basepoint Wealth LLC bought a new stake in Avis Budget Group during the fourth quarter valued at about $32,000. Hollencrest Capital Management bought a new stake in Avis Budget Group during the first quarter valued at about $44,000. Finally, Hantz Financial Services Inc. grew its position in shares of Avis Budget Group by 70.4% in the fourth quarter. Hantz Financial Services Inc. now owns 431 shares of the business services provider's stock valued at $55,000 after purchasing an additional 178 shares during the last quarter. Institutional investors own 96.35% of the company's stock.

Key Stories Impacting Avis Budget Group

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Despite the earnings shortfall, Avis reported fleet reductions, record vehicle utilization and improved adjusted EBITDA, indicating that tighter fleet discipline is helping protect margins. Management also reaffirmed its 2026 EBITDA guidance. Q2 earnings analysis
• Neutral Sentiment: Analysts remain focused on whether efficiency gains can offset soft rental demand. Avis faces weak liquidity and high leverage, while its valuation remains elevated relative to its financial risks, suggesting a cautious investor outlook. Avis valuation analysis
• Negative Sentiment: Avis’s latest quarter increased concerns about demand and earnings. The company reported $0.98 in adjusted earnings per share versus a $2.05 consensus estimate, while revenue of approximately $3.0 billion missed the $3.10 billion forecast and declined 1.3% year over year. The stock has fallen sharply since the report, despite the operational improvements. Avis Q2 earnings miss
• Negative Sentiment: Several law firms announced or promoted a securities class action on behalf of Avis investors who purchased securities between February 20, 2025, and April 21, 2026. The lawsuit, filed in federal court in Florida, names Pentwater Capital Management and executive Matthew Halbower and alleges violations of federal securities laws. The litigation adds headline and legal uncertainty, although the allegations have not been proven. Investors face a September 29, 2026 application deadline in the related action. Pomerantz class action announcement

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source