Avis Budget Group (NASDAQ:CAR) Shares Gap Down - Should You Sell?

Key Points

• Avis Budget shares gapped down Friday, opening at $132.20 after a $139.58 close and last trading around $135.46 on notable volume; the 50-day and 200-day SMAs are $109.96 and $130.34, respectively.
• Analyst sentiment has cooled with multiple downgrades and price-target cuts (e.g., Barclays to $95, Morgan Stanley to $97), leaving a MarketBeat consensus rating of "Reduce" and an average target of $124.71.
• Mixed insider and institutional activity: Pentwater Capital bought 425,000 shares (~$40.1M), increasing its stake ~11.9%, while a director sold 1,950 shares; institutional investors hold about 96.35% of the stock.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $139.58, but opened at $132.20. Avis Budget Group shares last traded at $135.4630, with a volume of 315,733 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on CAR shares. Zacks Research downgraded Avis Budget Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 19th. Weiss Ratings reissued a "sell (d)" rating on shares of Avis Budget Group in a report on Wednesday, January 21st. Barclays dropped 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. Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Finally, Morgan Stanley reduced 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 research report on Friday, March 6th. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, Avis Budget Group has an average rating of "Reduce" and an average target price of $124.71.

Avis Budget Group Stock Down 0.6%

The business's 50 day simple moving average is $109.96 and its two-hundred day simple moving average is $130.34. The stock has a market cap of $4.89 billion, a P/E ratio of -5.46 and a beta of 2.32.

Insider Buying and Selling at Avis Budget Group

In other news, major shareholder Pentwater Capital Management L acquired 425,000 shares of Avis Budget Group stock in a transaction that occurred 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 transaction, 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 acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Lynn Krominga sold 1,950 shares of the company's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $91.54, for a total value of $178,503.00. The SEC filing for this sale provides additional information. Company insiders own 52.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CAR. Assenagon Asset Management S.A. increased its stake in shares of Avis Budget Group by 40.3% in the fourth quarter. Assenagon Asset Management S.A. now owns 539,395 shares of the business services provider's stock valued at $69,215,000 after buying an additional 154,994 shares during the period. Mitsubishi UFJ Trust & Banking Corp boosted its holdings in Avis Budget Group by 1,443.0% in the third quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,955 shares of the business services provider's stock valued at $2,562,000 after acquiring an additional 14,921 shares during the last quarter. Intech Investment Management LLC increased its position in 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 valued at $6,016,000 after purchasing an additional 25,135 shares during the period. Retirement Systems of Alabama increased its position in 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 valued at $4,950,000 after purchasing an additional 10,179 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new position in Avis Budget Group during the 3rd quarter worth approximately $2,726,000. Institutional investors and hedge funds 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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