Avis Budget Group (NASDAQ:CAR) Issues Quarterly Earnings Results

Key Points

• Avis Budget Group reported quarterly EPS of $0.98, missing the $2.05 consensus estimate by $1.07. Revenue totaled approximately $3.0 billion, below the $3.10 billion forecast.
• Shares rose 1.6% to $166.32 despite the earnings miss. The stock has a $5.88 billion market capitalization and trades well below its 12-month high of $847.70.
• Analyst sentiment remains cautious, with six Hold ratings and four Sell ratings producing a consensus “Reduce” rating and a $132.75 target price. Institutional investors own 96.35% of the company, while two executives recently reduced their holdings by 20%.

Avis Budget Group (NASDAQ:CAR - Get Free Report) announced its earnings results on Tuesday. The business services provider reported $0.98 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.05 by ($1.07), FiscalAI reports. The business had revenue of $3 billion for the quarter, compared to the consensus estimate of $3.10 billion.

Avis Budget Group Stock Up 1.6%

Shares of CAR traded up $2.64 during mid-day trading on Tuesday, hitting $166.32. 705,434 shares of the company's stock were exchanged, compared to its average volume of 1,602,576. The stock has a market cap of $5.88 billion, a price-to-earnings ratio of -8.73 and a beta of 1.91. The firm has a fifty day moving average of $168.21 and a two-hundred day moving average of $166.69. Avis Budget Group has a twelve month low of $85.96 and a twelve month high of $847.70.

Insider Buying and Selling at Avis Budget Group

In related news, EVP Ravi Simhambhatla sold 3,469 shares of the company's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $184.09, for a total value of $638,608.21. Following the completion of the sale, the executive vice president directly owned 13,876 shares in the company, valued at approximately $2,554,432.84. This represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Edward P. Linnen sold 9,483 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $182.32, for a total transaction of $1,728,940.56. Following the transaction, the executive vice president directly owned 37,932 shares in the company, valued at $6,915,762.24. The trade was a 20.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 50.48% of the stock is currently owned by insiders.

Institutional Trading of Avis Budget Group

Several large investors have recently made changes to their positions in the stock. Royal Bank of Canada raised its stake in shares of Avis Budget Group by 414.0% in the 1st quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider's stock valued at $1,355,000 after acquiring an additional 14,385 shares in the last quarter. Empowered Funds LLC grew its holdings in Avis Budget Group by 10.1% during the first quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider's stock valued at $285,000 after purchasing an additional 343 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Avis Budget Group by 16.6% in the first 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 during the period. Prudential Financial Inc. bought a new position in shares of Avis Budget Group in the second quarter valued at approximately $352,000. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Avis Budget Group by 19.6% in the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock worth $72,000 after buying an additional 70 shares during the last quarter. Institutional investors own 96.35% of the company's stock.

Analyst Ratings Changes

CAR has been the topic of several recent analyst reports. Morgan Stanley upped their price target on Avis Budget Group from $97.00 to $99.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 20th. Barclays set a $160.00 target price on Avis Budget Group and gave the company an "equal weight" rating in a research note on Monday, June 8th. The Goldman Sachs Group raised their price target on shares of Avis Budget Group from $85.00 to $95.00 and gave the stock a "sell" rating in a report on Friday. Jefferies Financial Group lowered shares of Avis Budget Group from a "buy" rating to a "hold" rating and upped their price objective for the company from $112.00 to $160.00 in a research note on Friday, May 1st. Finally, Wall Street Zen raised shares of Avis Budget Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Six equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $132.75.

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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