Avis Budget Group (NASDAQ:CAR) Given New $97.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley cut its price target on Avis Budget Group from $142 to $97 and kept an "equal weight" rating, implying roughly a 0.4% upside from the recent close.
• Analyst sentiment has soured with multiple downgrades and a MarketBeat consensus rating of "Reduce" (ratings: 1 Buy, 4 Hold, 4 Sell) despite a consensus target of $124.71.
• Major shareholder Pentwater Capital bought 425,000 shares at about $94.26—raising its stake to 3.987 million shares (an ~11.9% increase); the report also notes 52.8% insider ownership and 96.35% institutional ownership.

Avis Budget Group (NASDAQ:CAR - Get Free Report) had its target price cut by analysts at Morgan Stanley from $142.00 to $97.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the business services provider's stock. Morgan Stanley's target price points to a potential upside of 0.43% from the stock's previous close.

Other equities research analysts have also recently issued reports about the stock. Weiss Ratings reissued a "sell (d)" rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Barclays reduced their target price on Avis Budget Group from $120.00 to $95.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 26th. Zacks Research downgraded Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. Wall Street Zen downgraded Avis Budget Group from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Finally, The Goldman Sachs Group set a $85.00 price objective on Avis Budget Group in a research report on Monday, February 23rd. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $124.71.

Avis Budget Group Stock Performance

CAR stock traded down $0.47 during midday trading on Friday, hitting $96.58. 206,662 shares of the stock were exchanged, compared to its average volume of 691,713. The stock's 50-day moving average price is $116.72 and its 200-day moving average price is $135.60. The stock has a market cap of $3.41 billion, a price-to-earnings ratio of -3.80 and a beta of 2.32. Avis Budget Group has a fifty-two week low of $54.03 and a fifty-two week high of $212.81.

Insider Transactions at Avis Budget Group

In other Avis Budget Group news, major shareholder Pentwater Capital Management L purchased 425,000 shares of the stock in a transaction on Friday, February 20th. The stock was bought at an average price of $94.26 per share, for a total transaction of $40,060,500.00. Following the acquisition, the insider directly owned 3,987,100 shares of the company's stock, valued at $375,824,046. This represents a 11.93% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, Director Lynn Krominga sold 1,950 shares of the firm's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $91.54, for a total transaction of $178,503.00. The SEC filing for this sale provides additional information. 52.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its stake in Avis Budget Group by 414.0% during the first quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider's stock worth $1,355,000 after acquiring an additional 14,385 shares during the last quarter. Empowered Funds LLC boosted its holdings in Avis Budget Group by 10.1% in the 1st quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider's stock worth $285,000 after acquiring an additional 343 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Avis Budget Group by 16.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 65,023 shares of the business services provider's stock valued at $4,935,000 after purchasing an additional 9,246 shares in the last quarter. Teacher Retirement System of Texas purchased a new stake in shares of Avis Budget Group during the second quarter worth about $452,000. Finally, State of Michigan Retirement System boosted its stake in shares of Avis Budget Group by 2.5% during the 2nd quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider's stock valued at $689,000 after buying an additional 100 shares during the last quarter. Institutional investors and hedge funds own 96.35% of the company's stock.

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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