Avis Budget Group (NASDAQ:CAR) Shares Gap Down on Analyst Downgrade

Key Points

• Shares of Avis Budget Group gapped down after JPMorgan downgraded the stock to an underweight, opening around $402 (prior close $443.94) while setting a $165 price target (up from $123).
• The rally was driven by a pronounced short‑squeeze and retail momentum that pushed CAR to multi‑month/record highs, but the stock has since shown extreme volatility with repeated trading halts, surging options activity, and warnings of a sharp reversal, potential dilution or regulatory scrutiny.
• Analyst and ownership context: most coverage is negative (three Hold, six Sell) with a MarketBeat consensus of Strong Sell and a $124 average price target, even as major shareholder Pentwater Capital purchased 425,000 shares in February.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) shares gapped down prior to trading on Thursday after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. The stock had previously closed at $443.94, but opened at $402.01. JPMorgan Chase & Co. now has a $165.00 price target on the stock, up from their previous price target of $123.00. Avis Budget Group shares last traded at $291.0020, with a volume of 2,642,220 shares traded.

A number of other research analysts have also recently issued reports on CAR. The Goldman Sachs Group set a $85.00 price objective on Avis Budget Group in a research note on Monday, February 23rd. Morgan Stanley cut their price target on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating on the stock in a 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. Deutsche Bank Aktiengesellschaft lowered shares of Avis Budget Group from a "buy" rating to a "hold" rating and set a $128.00 price objective for the company. in a report on Monday, April 6th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Three analysts have rated the stock with a Hold rating and six have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Strong Sell" and a consensus price target of $124.00.

Insider Transactions at Avis Budget Group

In related news, major shareholder Pentwater Capital Management L bought 425,000 shares of the stock in a transaction on Friday, February 20th. The shares were acquired at an average price of $94.26 per share, for a total transaction of $40,060,500.00. Following the purchase, the insider 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Lynn Krominga sold 1,950 shares of the firm's 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. 50.48% of the stock is currently owned by insiders.

Avis Budget Group News Roundup

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Shares have surged in a pronounced short‑squeeze and retail momentum rally, sending CAR to multi‑month/record highs as short covering and day‑trader interest push the stock sharply upward. Avis Budget shares touch record high as short squeeze hammers bearish bets
• Positive Sentiment: Multiple outlets report explosive daily and monthly gains (short‑squeeze driven), keeping momentum traders active and amplifying intraday moves. This continues to attract liquidity and speculative interest. Avis stock surges again, bringing monthly gains north of 600%
• Neutral Sentiment: A first‑quarter 2026 earnings release is scheduled for April 29 (7:00 a.m. ET); the print and any guidance will be a material catalyst for the stock following the rally. Avis Budget Group to Announce First Quarter 2026 Results on April 29, 2026
• Neutral Sentiment: Trading has been repeatedly halted (LULD pauses) across April 21–23 as the stock experiences extreme intraday swings — these pauses reduce continuous liquidity and can amplify pent‑up volatility when trading resumes.
• Neutral Sentiment: Options activity has spiked amid the rally, increasing leverage and amplification of price moves; heavy option flows can both accelerate rallies and deepen reversals. Avis Options Activity Surges Amid Gain in Stock; Puts Popular as Bearish Bets
• Negative Sentiment: JPMorgan downgraded CAR to underweight with a $165 price target (well below recent levels), signaling analyst concern about valuation and sustainability of the rally — this could weigh on institutional sentiment. JPMorgan downgrades Avis Budget
• Negative Sentiment: Coverage highlights technical damage and the risk of a hard landing after an extraordinary run (MarketWatch flagged the worst daily decline in decades for CAR), raising the probability of a sharp reversal. Avis's stock has its worst day in 28 years
• Negative Sentiment: Analysts and press warn a parabolic move could prompt a secondary equity offering or regulatory scrutiny — both would be potential negative catalysts (dilution or investigations). Avis Short Squeeze: Why a Stock Offering and Regulatory Scrutiny Could Be Next

Institutional Investors Weigh In On Avis Budget Group

A number of hedge funds have recently added to or reduced their stakes in CAR. Louisiana State Employees Retirement System bought a new position in shares of Avis Budget Group during the 1st quarter valued at $715,000. Blue Trust Inc. grew its holdings in shares of Avis Budget Group by 3,914.3% in the first quarter. Blue Trust Inc. now owns 562 shares of the business services provider's stock worth $82,000 after acquiring an additional 548 shares during the period. Caitong International Asset Management Co. Ltd increased its position in Avis Budget Group by 1,845.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider's stock valued at $27,000 after acquiring an additional 203 shares during the last quarter. Pacer Advisors Inc. lifted its holdings in Avis Budget Group by 138.3% in the fourth quarter. Pacer Advisors Inc. now owns 5,294 shares of the business services provider's stock valued at $679,000 after acquiring an additional 3,072 shares during the period. Finally, First Citizens Bank & Trust Co. boosted its position in Avis Budget Group by 1.8% in the fourth quarter. First Citizens Bank & Trust Co. now owns 7,754 shares of the business services provider's stock worth $995,000 after purchasing an additional 137 shares during the last quarter. 96.35% of the stock is currently owned by hedge funds and other institutional investors.

Avis Budget Group Trading Down 38.4%

The firm has a market capitalization of $9.67 billion, a P/E ratio of -11.44 and a beta of 1.94. The stock has a 50 day simple moving average of $188.41 and a 200-day simple moving average of $152.49.

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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