Avis Budget Group (NASDAQ:CAR) Price Target Raised to $99.00

Key Points

• Morgan Stanley raised its price target on Avis Budget Group from $97 to $99, while keeping an equal weight rating on the stock. The new target still implies significant downside from the current share price.
• Other analysts remain cautious overall: recent ratings included sell and underweight calls, and MarketBeat shows a consensus rating of Reduce with an average target price of $125.25.
• Avis Budget Group reported a Q1 earnings miss, posting EPS of ($8.01) versus estimates of ($6.82), though revenue of $2.53 billion came in above expectations and rose 4.1% year over year.

Avis Budget Group (NASDAQ:CAR - Get Free Report) had its target price increased by research analysts at Morgan Stanley from $97.00 to $99.00 in a research report issued to clients and investors on Wednesday, MarketBeat reports. The firm presently has an "equal weight" rating on the business services provider's stock. Morgan Stanley's price objective would indicate a potential downside of 34.21% from the company's current price.

Several other brokerages also recently issued reports on CAR. Weiss Ratings reissued a "sell (d)" rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. JPMorgan Chase & Co. reduced their price target on Avis Budget Group from $165.00 to $140.00 and set an "underweight" rating on the stock in a report on Friday, May 1st. Susquehanna raised their price target on Avis Budget Group from $105.00 to $140.00 and gave the stock a "neutral" rating in a research note on Friday, May 8th. Barclays dropped their price objective on Avis Budget Group from $150.00 to $140.00 and set an "underweight" rating for the company in a report on Tuesday, May 5th. Finally, Jefferies Financial Group lowered Avis Budget Group from a "buy" rating to a "hold" rating and increased their target price for the stock from $112.00 to $160.00 in a research note on Friday, May 1st. Five equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $125.25.

Avis Budget Group Stock Down 0.4%

CAR traded down $0.60 during trading on Wednesday, reaching $150.48. The company had a trading volume of 34,462 shares, compared to its average volume of 2,012,251. The business has a 50 day simple moving average of $210.25 and a 200-day simple moving average of $154.51. The stock has a market cap of $5.32 billion, a P/E ratio of -7.90 and a beta of 1.91. Avis Budget Group has a 52 week low of $85.96 and a 52 week high of $847.70.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last announced its earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share for the quarter, missing the consensus estimate of ($6.82) by ($1.19). The firm had revenue of $2.53 billion for the quarter, compared to analyst estimates of $2.43 billion. During the same quarter in the prior year, the company posted ($14.35) earnings per share. The company's revenue for the quarter was up 4.1% on a year-over-year basis. As a group, equities research analysts expect that Avis Budget Group will post 3.46 EPS for the current fiscal year.

Insider Buying and Selling at Avis Budget Group

In other news, major shareholder Pentwater Capital Management L sold 3,347 shares of the business's stock in a transaction dated Wednesday, April 22nd. The shares were sold at an average price of $438.74, for a total value of $1,468,462.78. Following the completion of the sale, the insider owned 6,177,100 shares in the company, valued at approximately $2,710,140,854. The trade was a 0.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Edward P. Linnen sold 9,483 shares of the company's stock in a transaction that occurred 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 completion of the sale, the executive vice president directly owned 37,932 shares of the company's stock, valued at $6,915,762.24. The trade was a 20.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 18,249 shares of company stock valued at $4,014,515 in the last ninety days. 50.48% of the stock is owned by insiders.

Institutional Trading of Avis Budget Group

A number of hedge funds have recently bought and sold shares of CAR. UBS Group AG raised its position in shares of Avis Budget Group by 37.3% in the 4th quarter. UBS Group AG now owns 2,964,807 shares of the business services provider's stock worth $380,444,000 after acquiring an additional 804,814 shares in the last quarter. Assenagon Asset Management S.A. boosted its position in Avis Budget Group by 40.3% during the fourth quarter. Assenagon Asset Management S.A. now owns 539,395 shares of the business services provider's stock valued at $69,215,000 after purchasing an additional 154,994 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp boosted its position in Avis Budget Group by 1,443.0% during the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,955 shares of the business services provider's stock valued at $2,562,000 after purchasing an additional 14,921 shares in the last quarter. M&T Bank Corp grew its stake in Avis Budget Group by 287.5% in the fourth quarter. M&T Bank Corp now owns 11,192 shares of the business services provider's stock valued at $1,436,000 after purchasing an additional 8,304 shares during the last quarter. Finally, Intech Investment Management LLC raised its holdings in Avis Budget Group by 203.8% in the third quarter. Intech Investment Management LLC now owns 37,467 shares of the business services provider's stock worth $6,016,000 after purchasing an additional 25,135 shares in the last quarter. Hedge funds and other institutional investors 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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