Avis Budget Group (NASDAQ:CAR) Price Target Cut to $140.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on Avis from $165 to $140 and maintains an "underweight" rating, implying roughly a 23% downside from the stock's recent price.
• Analyst sentiment is weak — MarketBeat shows a consensus of "Strong Sell" with an average target of $125, as multiple firms (including Goldman Sachs and Morgan Stanley) recently lowered targets or downgraded the stock.
• Avis's latest quarter showed an EPS miss (‑$8.01 vs. consensus ‑$6.82) despite revenue rising 4.1% to $2.53 billion, highlighting continued operating losses amid revenue growth.

Avis Budget Group (NASDAQ:CAR - Get Free Report) had its price objective cut by research analysts at JPMorgan Chase & Co. from $165.00 to $140.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an "underweight" rating on the business services provider's stock. JPMorgan Chase & Co.'s price objective suggests a potential downside of 23.07% from the stock's current price.

Several other analysts have also recently commented on CAR. The Goldman Sachs Group set a $85.00 target price on shares of Avis Budget Group in a research report on Monday, February 23rd. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $125.00 price target on shares of Avis Budget Group in a research report on Friday. Morgan Stanley lowered their price objective on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating for the company in a research note on Friday, March 6th. Zacks Research downgraded shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 19th. Finally, Wall Street Zen cut shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research note on Saturday, February 21st. Four analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Strong Sell" and an average target price of $125.00.

Avis Budget Group Stock Performance

NASDAQ CAR traded up $1.31 during trading hours on Friday, hitting $181.98. 1,001,128 shares of the company's stock were exchanged, compared to its average volume of 2,160,998. The firm has a market capitalization of $6.43 billion, a P/E ratio of -9.59 and a beta of 1.94. The business's 50 day moving average is $197.79 and its 200-day moving average is $154.39. Avis Budget Group has a 12-month low of $85.96 and a 12-month high of $847.70.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last released its earnings results on Wednesday, April 29th. The business services provider reported ($8.01) EPS for the quarter, missing analysts' consensus estimates of ($6.82) by ($1.19). The business had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.43 billion. During the same quarter in the previous year, the company posted ($14.35) earnings per share. The firm's revenue was up 4.1% compared to the same quarter last year. As a group, equities research analysts anticipate that Avis Budget Group will post 3.87 EPS for the current fiscal year.

Insider Buying and Selling

In other Avis Budget Group news, EVP Ravi Simhambhatla sold 3,469 shares of Avis Budget Group stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $184.09, for a total transaction of $638,608.21. Following the completion of the sale, the executive vice president owned 13,876 shares of the company's stock, valued at $2,554,432.84. The trade was a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder Pentwater Capital Management L acquired 425,000 shares of the business's stock in a transaction on Friday, February 20th. The shares were purchased at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the transaction, the insider owned 3,987,100 shares in the company, valued at approximately $375,824,046. This represents a 11.93% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 18,249 shares of company stock valued at $4,014,515 over the last 90 days. 50.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Avis Budget Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC boosted its holdings 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 valued at $72,000 after acquiring an additional 70 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in shares of Avis Budget Group by 26.5% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider's stock worth $58,000 after buying an additional 76 shares during the last quarter. Deseret Mutual Benefit Administrators increased its holdings in shares of Avis Budget Group by 102.3% in the 3rd quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock worth $28,000 after acquiring an additional 88 shares during the period. Oregon Public Employees Retirement Fund boosted its holdings in shares of Avis Budget Group by 3.0% in the first quarter. Oregon Public Employees Retirement Fund now owns 3,474 shares of the business services provider's stock worth $507,000 after buying an additional 100 shares during the period. Finally, PNC Financial Services Group Inc. boosted its holdings in shares of Avis Budget Group by 7.8% during the third quarter. PNC Financial Services Group Inc. now owns 1,460 shares of the business services provider's stock worth $234,000 after purchasing an additional 106 shares during the period. Hedge funds and other 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.

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.