Avis Budget Group (NASDAQ:CAR) Shares Down 5.4% - What's Next?

Key Points

• Avis Budget Group's stock dropped 5.4% on Monday, closing at $146.15 after trading as low as $145.37, with a significant decline in trading volume.
• Research analysts have mixed ratings on the company, with one "Buy," four "Hold," and three "Sell" ratings, and a consensus target price of $143.80.
• The company reported disappointing earnings, with only $0.10 EPS for the quarter, significantly missing analysts' expectations of $2.02.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report)'s stock price fell 5.4% during trading on Monday . The company traded as low as $145.37 and last traded at $146.15. 149,551 shares were traded during trading, a decline of 88% from the average session volume of 1,205,865 shares. The stock had previously closed at $154.56.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on CAR shares. Bank of America reaffirmed an "underperform" rating and set a $113.00 target price (down from $120.00) on shares of Avis Budget Group in a research report on Wednesday, August 20th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $196.00 price target (up previously from $130.00) on shares of Avis Budget Group in a research report on Thursday, July 10th. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $105.00 price target (up from $87.00) on shares of Avis Budget Group in a report on Friday, August 1st. Zacks Research raised shares of Avis Budget Group from a "strong sell" rating to a "hold" rating in a report on Thursday, August 21st. Finally, Barclays raised their price target on Avis Budget Group from $105.00 to $150.00 and gave the stock an "equal weight" rating in a research report on Monday, August 4th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, Avis Budget Group has a consensus rating of "Reduce" and a consensus target price of $143.80.

Avis Budget Group Stock Down 4.0%

The stock has a market capitalization of $5.22 billion, a PE ratio of -2.35 and a beta of 2.03. The business's fifty day moving average is $159.76 and its two-hundred day moving average is $134.37.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its earnings results on Tuesday, July 29th. The business services provider reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.02 by ($1.92). The firm had revenue of $3.04 billion for the quarter, compared to analysts' expectations of $3.02 billion. The company's revenue for the quarter was down .3% on a year-over-year basis. During the same period in the prior year, the company earned $0.41 earnings per share. Sell-side analysts expect that Avis Budget Group, Inc. will post 8.91 EPS for the current fiscal year.

Insider Activity at Avis Budget Group

In related news, Director Bernardo Hees sold 402,200 shares of the company's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $156.59, for a total value of $62,980,498.00. Following the transaction, the director directly owned 116,521 shares in the company, valued at approximately $18,246,023.39. This represents a 77.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Edward P. Linnen sold 10,000 shares of Avis Budget Group stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $156.83, for a total value of $1,568,300.00. Following the completion of the transaction, the executive vice president directly owned 40,915 shares of the company's stock, valued at approximately $6,416,699.45. This represents a 19.64% decrease in their ownership of the stock. The disclosure for this sale can be found here. 52.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Avis Budget Group

Several large investors have recently modified their holdings of the stock. Crossmark Global Holdings Inc. acquired a new stake in shares of Avis Budget Group in the first quarter valued at approximately $274,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of Avis Budget Group by 9.8% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,840 shares of the business services provider's stock worth $443,000 after purchasing an additional 519 shares in the last quarter. Ballentine Partners LLC purchased a new stake in Avis Budget Group during the 2nd quarter worth approximately $308,000. Victory Capital Management Inc. lifted its position in shares of Avis Budget Group by 166.0% during the first quarter. Victory Capital Management Inc. now owns 29,527 shares of the business services provider's stock worth $2,241,000 after purchasing an additional 18,425 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its stake in Avis Budget Group by 2,228.9% during the first quarter. Russell Investments Group Ltd. now owns 1,770 shares of the business services provider's stock valued at $134,000 after purchasing an additional 1,694 shares during 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 engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean.

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