Avis Budget Group (NASDAQ:CAR) Shares Gap Down - Time to Sell?

Key Points

• Avis Budget Group stock gapped down, opening at $352.05 after a $371.01 close and last trading around $341.59 on ~1.42 million shares (about a 3.5% decline).
• Analysts have trimmed ratings and price targets — multiple downgrades and cuts leave a MarketBeat consensus rating of Reduce with a $115 consensus target price.
• Pentwater Capital Management bought 425,000 shares at $94.26 (raising its stake to ~3.99 million shares), while a director sold 1,950 shares; the filing shows insiders own roughly 52.8% of the stock.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $371.01, but opened at $352.05. Avis Budget Group shares last traded at $341.5940, with a volume of 1,421,975 shares traded.

Analyst Upgrades and Downgrades

Several analysts have issued reports on CAR shares. Deutsche Bank Aktiengesellschaft lowered shares of Avis Budget Group from a "buy" rating to a "hold" rating and set a $128.00 price target on the stock. in a research report on Monday, April 6th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Avis Budget Group in a report on Wednesday, January 21st. Morgan Stanley reduced their price objective on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating for the company in a report on Friday, March 6th. Barclays reduced their price objective on shares of Avis Budget Group from $120.00 to $95.00 and set an "equal weight" rating for the company in a report on Thursday, February 26th. Finally, Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Five investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of $115.00.

Avis Budget Group Trading Down 3.5%

The stock has a market capitalization of $12.64 billion, a P/E ratio of -13.71 and a beta of 1.94. The firm's fifty day moving average is $134.68 and its 200-day moving average is $135.53.

Insider Activity

In other Avis Budget Group news, Director Lynn Krominga sold 1,950 shares of the business's stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $91.54, for a total value of $178,503.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Pentwater Capital Management L bought 425,000 shares of the company's stock in a transaction on Friday, February 20th. The stock was bought at an average cost of $94.26 per share, with a total value of $40,060,500.00. Following the completion of 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 position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 52.80% of the company's stock.

Institutional Investors Weigh In On Avis Budget Group

A number of institutional investors and hedge funds have recently modified their holdings of CAR. Royal Bank of Canada grew its holdings in Avis Budget Group by 414.0% during the first quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider's stock valued at $1,355,000 after purchasing an additional 14,385 shares during the period. Empowered Funds LLC grew its holdings in Avis Budget Group by 10.1% during the first quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider's stock valued at $285,000 after purchasing an additional 343 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Avis Budget Group by 16.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 65,023 shares of the business services provider's stock valued at $4,935,000 after purchasing an additional 9,246 shares during the period. Prudential Financial Inc. acquired a new position in Avis Budget Group during the second quarter valued at approximately $352,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Avis Budget Group by 19.6% during the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock valued at $72,000 after purchasing an additional 70 shares during the period. 96.35% of the stock is owned by institutional investors.

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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