Avis Budget Group (NASDAQ:CAR) Sees Large Volume Increase - Should You Buy?

Key Points

• Trading spike: Shares saw a ~73% jump in volume to about 2.16 million shares on the session, coinciding with a notable price decline (the article notes the stock down ~6.6%).
• Negative analyst sentiment: The consensus rating is "Reduce" with an average price target of $115 after multiple downgrades and several Sell/Hold calls (price targets as low as $85–$97 were cited).
• Significant insider/institutional activity: Major shareholder Pentwater Capital bought 425,000 shares (~$40M at ~$94/share), increasing its stake, and filings show substantial insider and institutional ownership in the company.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) shares saw unusually-strong trading volume on Wednesday . Approximately 2,155,652 shares traded hands during trading, an increase of 73% from the previous session's volume of 1,249,328 shares.The stock last traded at $352.4090 and had previously closed at $411.56.

Analyst Ratings Changes

CAR has been the subject of a number of analyst reports. Zacks Research downgraded Avis Budget Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 19th. Deutsche Bank Aktiengesellschaft downgraded Avis Budget Group from a "buy" rating to a "hold" rating and set a $128.00 price target for the company. in a research note on Monday, April 6th. The Goldman Sachs Group set a $85.00 price target on Avis Budget Group in a research note on Monday, February 23rd. Morgan Stanley dropped their price target on 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. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Five research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Avis Budget Group presently has a consensus rating of "Reduce" and an average price target of $115.00.

Avis Budget Group Stock Down 6.6%

The firm has a market cap of $13.58 billion, a price-to-earnings ratio of -15.15 and a beta of 1.94. The stock has a 50 day moving average of $140.49 and a 200 day moving average of $137.29.

Insider Transactions at Avis Budget Group

In other news, Director Lynn Krominga sold 1,950 shares of the stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $91.54, for a total value of $178,503.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Pentwater Capital Management L bought 425,000 shares of the company's stock in a transaction dated Friday, February 20th. The stock was bought at an average cost of $94.26 per share, with a total value of $40,060,500.00. Following the acquisition, the insider directly owned 3,987,100 shares of the company's stock, valued at approximately $375,824,046. The trade was a 11.93% increase in their position. The SEC filing for this purchase provides additional information. 50.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC lifted 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 worth $72,000 after acquiring an additional 70 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of Avis Budget Group by 26.5% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider's stock valued at $58,000 after buying an additional 76 shares during the period. Deseret Mutual Benefit Administrators increased its stake in shares of Avis Budget Group by 102.3% in the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock valued at $28,000 after buying an additional 88 shares during the period. Wedmont Private Capital increased its stake in shares of Avis Budget Group by 6.1% in the third quarter. Wedmont Private Capital now owns 1,624 shares of the business services provider's stock valued at $242,000 after buying an additional 93 shares during the period. Finally, PNC Financial Services Group Inc. increased its stake in shares of Avis Budget Group by 7.8% in the third quarter. PNC Financial Services Group Inc. now owns 1,460 shares of the business services provider's stock valued at $234,000 after buying an additional 106 shares during the period. 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.

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.