Avis Budget Group (NASDAQ:CAR) Earns Underperform Rating from Bank of America

Key Points

• Bank of America has reiterated an "underperform" rating for Avis Budget Group (NASDAQ: CAR), reducing its price target from $120.00 to $113.00, indicating a potential downside of 27.85% from the stock's previous close.
• Avis Budget Group's recent earnings report showed a significant miss in earnings per share (EPS), with reported EPS of $0.10 compared to the consensus estimate of $2.02.
• Despite the negative outlook from Bank of America, other analysts have shown more optimism, with varying ratings ranging from "buy" to "hold" and price targets reaching as high as $196.00.

Avis Budget Group (NASDAQ:CAR - Get Free Report)'s stock had its "underperform" rating reiterated by research analysts at Bank of America in a report issued on Wednesday,Benzinga reports. They presently have a $113.00 price objective on the business services provider's stock, down from their prior price objective of $120.00. Bank of America's target price would suggest a potential downside of 27.85% from the stock's previous close.

Several other equities analysts also recently commented on the company. Wall Street Zen raised Avis Budget Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 3rd. Barclays upped their target price on Avis Budget Group from $105.00 to $150.00 and gave the company an "equal weight" rating in a research report on Monday, August 4th. JPMorgan Chase & Co. reissued a "neutral" rating and set a $155.00 price target on shares of Avis Budget Group in a research report on Thursday, July 31st. The Goldman Sachs Group reissued a "sell" rating and set a $105.00 price target (up previously from $87.00) on shares of Avis Budget Group in a research report on Friday, August 1st. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $196.00 price target (up previously from $130.00) on shares of Avis Budget Group in a research report on Thursday, July 10th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Avis Budget Group currently has an average rating of "Reduce" and an average target price of $143.80.

Avis Budget Group Stock Down 1.3%

Shares of NASDAQ CAR opened at $156.62 on Wednesday. Avis Budget Group has a twelve month low of $54.03 and a twelve month high of $212.81. The business's 50 day moving average price is $169.15 and its two-hundred day moving average price is $116.10. The company has a market cap of $5.51 billion, a PE ratio of -2.48 and a beta of 2.19.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted 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 net margin of 19.06% and a negative return on equity of 14.74%. The firm had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.02 billion. During the same period in the previous year, the company posted $0.41 EPS. Avis Budget Group's revenue for the quarter was down .3% compared to the same quarter last year. As a group, research analysts anticipate that Avis Budget Group will post 8.91 EPS for the current fiscal year.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. UMB Bank n.a. grew its stake in shares of Avis Budget Group by 106.9% in the 1st quarter. UMB Bank n.a. now owns 478 shares of the business services provider's stock valued at $36,000 after buying an additional 247 shares during the period. Fifth Third Bancorp boosted its stake in shares of Avis Budget Group by 32.6% in the 2nd quarter. Fifth Third Bancorp now owns 228 shares of the business services provider's stock worth $39,000 after buying an additional 56 shares during the last quarter. Sterling Capital Management LLC boosted its stake in shares of Avis Budget Group by 41.3% in the 4th quarter. Sterling Capital Management LLC now owns 736 shares of the business services provider's stock worth $59,000 after buying an additional 215 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of Avis Budget Group by 421.1% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 839 shares of the business services provider's stock worth $64,000 after purchasing an additional 678 shares during the period. Finally, Quarry LP raised its holdings in Avis Budget Group by 399.5% during the 1st quarter. Quarry LP now owns 909 shares of the business services provider's stock valued at $69,000 after acquiring an additional 727 shares during the period. 96.35% of the stock is owned by institutional investors.

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.

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