Avis Budget Group (NASDAQ:CAR) Sets New 12-Month High - Should You Buy?

Key Points

• Shares hit a new 52‑week high — the stock traded as high as $327.31 intraday and last at $302.19 on volume of 747,273 shares.
• Despite the rally, analysts are largely bearish with a MarketBeat consensus rating of "Reduce" and a consensus target price of $115 after several downgrades and lower price targets.
• Major shareholder Pentwater Capital bought 425,000 shares at about $94.26, raising its stake to roughly 3.99M shares, and company insiders now own about 50.48% of the stock.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $327.31 and last traded at $302.1860, with a volume of 747273 shares traded. The stock had previously closed at $299.94.

Analyst Ratings Changes

A number of research analysts recently weighed in on CAR shares. Barclays decreased 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 report on Thursday, February 26th. Zacks Research downgraded shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. Morgan Stanley decreased their target price on shares of 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. Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Avis Budget Group in a research report on Wednesday, January 21st. Five research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $115.00.

Avis Budget Group Stock Performance

The business's 50-day moving average price is $129.57 and its 200 day moving average price is $134.07. The company has a market cap of $11.22 billion, a P/E ratio of -12.51 and a beta of 1.94.

Insider Transactions at Avis Budget Group

In other news, major shareholder Pentwater Capital Management L acquired 425,000 shares of the firm's stock in a transaction dated Friday, February 20th. The stock was bought at an average price of $94.26 per share, with a total value of $40,060,500.00. Following the transaction, the insider directly owned 3,987,100 shares in the company, valued at approximately $375,824,046. The trade was a 11.93% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Lynn Krominga sold 1,950 shares of Avis Budget Group stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $91.54, for a total transaction of $178,503.00. The disclosure for this sale is available in the SEC filing. Company insiders own 50.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Assenagon Asset Management S.A. lifted its stake in shares of Avis Budget Group by 40.3% during the 4th quarter. Assenagon Asset Management S.A. now owns 539,395 shares of the business services provider's stock worth $69,215,000 after buying an additional 154,994 shares during the last quarter. Mitsubishi UFJ Trust & Banking Corp lifted its stake in shares of Avis Budget Group by 1,443.0% during the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,955 shares of the business services provider's stock worth $2,562,000 after buying an additional 14,921 shares during the last quarter. Intech Investment Management LLC lifted its stake in shares of Avis Budget Group by 203.8% during the 3rd quarter. Intech Investment Management LLC now owns 37,467 shares of the business services provider's stock worth $6,016,000 after buying an additional 25,135 shares during the last quarter. Retirement Systems of Alabama lifted its stake in shares of Avis Budget Group by 49.3% during the 3rd quarter. Retirement Systems of Alabama now owns 30,825 shares of the business services provider's stock worth $4,950,000 after buying an additional 10,179 shares during the last quarter. Finally, Neo Ivy Capital Management lifted its stake in shares of Avis Budget Group by 704.2% during the 3rd quarter. Neo Ivy Capital Management now owns 17,548 shares of the business services provider's stock worth $2,818,000 after buying an additional 15,366 shares during the last quarter. 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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