Avis Budget Group (NASDAQ:CAR) Hits New 1-Year High - Here's What Happened

Key Points

• Shares of Avis Budget Group hit a new 52‑week high, trading as high as $520.69 (last $513.89) during the session, an intraday rise of roughly 11.5%.
• Analysts have largely downgraded the stock and MarketBeat reports a consensus rating of "Strong Sell" with a consensus target price of $122.86 (four Holds and five Sells noted).
• Pentwater Capital bought 425,000 shares at about $94.26 (~$40.06M), increasing its ownership by 11.93%, and insiders are reported to own roughly 50.48% of the company.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) hit a new 52-week high during trading on Monday . The stock traded as high as $520.69 and last traded at $513.8850, with a volume of 869590 shares changing hands. The stock had previously closed at $493.86.

Wall Street Analysts Forecast Growth

CAR has been the subject of several analyst reports. Barclays downgraded shares of Avis Budget Group from an "equal weight" rating to an "underweight" rating and increased their target price for the company from $95.00 to $150.00 in a report on Monday. Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Deutsche Bank Aktiengesellschaft downgraded shares of Avis Budget Group from a "buy" rating to a "hold" rating and set a $128.00 target price for the company. in a report on Monday, April 6th. Morgan Stanley lowered 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 report on Friday, March 6th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Avis Budget Group in a report on Wednesday, January 21st. Four equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, Avis Budget Group presently has a consensus rating of "Strong Sell" and a consensus target price of $122.86.

Avis Budget Group Stock Up 11.5%

The company has a market cap of $19.45 billion, a P/E ratio of -21.64 and a beta of 1.94. The company's 50-day moving average is $160.11 and its two-hundred day moving average is $143.33.

Insider Transactions at Avis Budget Group

In related news, Director Lynn Krominga sold 1,950 shares of the business's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $91.54, for a total value of $178,503.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Pentwater Capital Management L bought 425,000 shares of the business's stock in a transaction on Friday, February 20th. The shares were acquired at an average price of $94.26 per share, with a total value of $40,060,500.00. Following the transaction, the insider directly owned 3,987,100 shares of the company's stock, valued at approximately $375,824,046. This trade represents a 11.93% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 50.48% of the company's stock.

Hedge Funds Weigh In On Avis Budget Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Deseret Mutual Benefit Administrators boosted its position in 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. Caitong International Asset Management Co. Ltd boosted its position 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 worth $27,000 after purchasing an additional 203 shares during the period. Quarry LP bought a new position in Avis Budget Group during the fourth quarter worth about $27,000. Basepoint Wealth LLC bought a new position in Avis Budget Group during the fourth quarter worth about $32,000. Finally, Hantz Financial Services Inc. boosted its position in Avis Budget Group by 136.4% during the third 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 period. Institutional investors own 96.35% of the company's stock.

About Avis Budget Group

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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