Avis Budget Group (NASDAQ:CAR) Rating Lowered to Hold at Deutsche Bank Aktiengesellschaft

Key Points

• Deutsche Bank downgraded Avis Budget Group from a "buy" to a "hold" and set a $128 target, implying roughly a 32.8% downside from the stock's current price.
• Overall analyst sentiment has turned negative — five Hold and four Sell ratings result in a MarketBeat consensus of "Reduce" with an average target of $115.
• Pentwater Capital purchased 425,000 shares at about $94.26 (≈$40.06M), boosting its stake by 11.93% to 3,987,100 shares, indicating significant shareholder buying despite downgrades.

Avis Budget Group (NASDAQ:CAR - Get Free Report) was downgraded by research analysts at Deutsche Bank Aktiengesellschaft from a "buy" rating to a "hold" rating in a research note issued on Monday, Marketbeat Ratings reports. They currently have a $128.00 target price on the business services provider's stock. Deutsche Bank Aktiengesellschaft's price objective suggests a potential downside of 32.78% from the stock's current price.

Several other equities analysts also recently issued reports on the stock. The Goldman Sachs Group set a $85.00 price objective on shares of Avis Budget Group in a research note on Monday, February 23rd. Barclays lowered their target price on shares of Avis Budget Group from $120.00 to $95.00 and set an "equal weight" rating for the company in a research note on Thursday, February 26th. Weiss Ratings reissued a "sell (d)" rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Zacks Research cut Avis Budget Group from a "hold" rating to a "strong sell" rating in a report on Thursday, February 19th. Finally, Morgan Stanley lowered their price objective on Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating for the company in a research report on Friday, March 6th. Five investment analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $115.00.

Avis Budget Group Stock Performance

NASDAQ:CAR opened at $190.42 on Monday. The firm has a market cap of $6.71 billion, a price-to-earnings ratio of -7.50 and a beta of 1.94. The company's 50-day moving average is $114.65 and its two-hundred day moving average is $130.31. Avis Budget Group has a 12-month low of $62.17 and a 12-month high of $212.81.

Insider Activity at Avis Budget Group

In related news, major shareholder Pentwater Capital Management L bought 425,000 shares of the stock in a transaction that occurred on Friday, February 20th. The stock was purchased at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the acquisition, the insider owned 3,987,100 shares in the company, valued at $375,824,046. This trade represents a 11.93% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Lynn Krominga sold 1,950 shares of the company'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. Additional details regarding this sale are available in the official SEC disclosure. 52.80% of the stock is currently owned by company insiders.

Institutional Trading of Avis Budget Group

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada boosted its holdings in Avis Budget Group by 414.0% in the first 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 during the last quarter. Empowered Funds LLC increased its stake 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 worth $285,000 after acquiring an additional 343 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Avis Budget Group by 16.6% during 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 worth $4,935,000 after acquiring an additional 9,246 shares during the last quarter. Prudential Financial Inc. purchased a new position in shares of Avis Budget Group in the 2nd quarter worth about $352,000. Finally, Norges Bank purchased a new position in shares of Avis Budget Group in the 2nd quarter worth about $6,790,000. 96.35% of the stock is currently owned by institutional investors and hedge funds.

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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