Avis Budget Group (NASDAQ:CAR) Shares Gap Down After Earnings Miss

Key Points

• Avis Budget Group's shares fell by 15.4% after reporting weak earnings, with a significant drop from a previous closing price of $203.88 to an opening price of $183.62.
• The company reported earnings of $0.10 per share, missing analyst expectations of $2.02, while revenue of $3.04 billion slightly surpassed estimates.
• Analysts maintain a mixed outlook, with JPMorgan raising its price target to $155.00 and Goldman Sachs lowering theirs to $87.00, indicating varied confidence in the stock's future performance.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $203.88, but opened at $183.62. Avis Budget Group shares last traded at $170.46, with a volume of 712,768 shares traded.

The business services provider reported $0.10 EPS for the quarter, missing analysts' consensus estimates of $2.02 by ($1.92). The business had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $3.02 billion. Avis Budget Group had a negative net margin of 19.06% and a negative return on equity of 14.74%. The company's quarterly revenue was down .3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.41 EPS.

Analyst Ratings Changes

A number of analysts recently issued reports on CAR shares. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $155.00 price target on shares of Avis Budget Group in a report on Thursday. The Goldman Sachs Group lowered Avis Budget Group from a "neutral" rating to a "sell" rating and boosted their price target for the company from $87.00 to $105.00 in a report on Friday. Wall Street Zen upgraded Avis Budget Group from a "sell" rating to a "hold" rating in a report on Saturday, May 3rd. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $196.00 target price (up previously from $130.00) on shares of Avis Budget Group in a report on Thursday, July 10th. One analyst has rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $131.20.

Hedge Funds Weigh In On Avis Budget Group

A number of large investors have recently made changes to their positions in the business. Crossmark Global Holdings Inc. acquired a new position in shares of Avis Budget Group in the 1st quarter valued at $274,000. Captrust Financial Advisors acquired a new stake in Avis Budget Group during the 4th quarter worth about $460,000. Northern Trust Corp grew its position in shares of Avis Budget Group by 21.0% during the 4th quarter. Northern Trust Corp now owns 156,176 shares of the business services provider's stock valued at $12,589,000 after acquiring an additional 27,127 shares during the period. Victory Capital Management Inc. grew its position in shares of Avis Budget Group by 166.0% during the 1st quarter. Victory Capital Management Inc. now owns 29,527 shares of the business services provider's stock valued at $2,241,000 after acquiring an additional 18,425 shares during the period. Finally, Norges Bank acquired a new stake in shares of Avis Budget Group during the 4th quarter valued at about $11,234,000. 96.35% of the stock is owned by institutional investors and hedge funds.

Avis Budget Group Trading Down 3.6%

The company has a fifty day moving average of $160.22 and a 200-day moving average of $110.53. The company has a market capitalization of $5.77 billion, a price-to-earnings ratio of -2.59 and a beta of 2.19.

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.