Avis Budget Group (NASDAQ:CAR) Shares Gap Up After Analyst Upgrade

Key Points

• Avis Budget Group shares jumped after JPMorgan raised its price target from $155 to $170, though the bank kept an underweight rating on the stock. The shares opened at $193.20 after closing at $186.28 and last traded around $195.92.
• Other analysts have mostly been cautious: several firms recently upgraded or raised targets, but the overall consensus remains “Reduce” with an average price target of $131.50. MarketBeat notes six analysts rate the stock Hold and four rate it Sell.
• The company recently reported mixed quarterly results, missing EPS estimates at $8.01 loss per share but beating revenue expectations with $2.53 billion in sales. Insider selling also continued, including an EVP sale and additional insider transactions over the past 90 days.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) gapped up prior to trading on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $155.00 to $170.00. The stock had previously closed at $186.28, but opened at $193.20. JPMorgan Chase & Co. currently has an underweight rating on the stock. Avis Budget Group shares last traded at $195.92, with a volume of 112,444 shares changing hands.

A number of other brokerages have also weighed in on CAR. Wall Street Zen upgraded shares of Avis Budget Group from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $125.00 target price on shares of Avis Budget Group in a research note on Friday, May 1st. Zacks Research raised Avis Budget Group from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 6th. Jefferies Financial Group cut Avis Budget Group from a "buy" rating to a "hold" rating and raised their price target for the company from $112.00 to $160.00 in a research note on Friday, May 1st. Finally, Morgan Stanley lifted their price target on Avis Budget Group from $97.00 to $99.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 20th. Six analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $131.50.

Insider Buying and Selling

In other Avis Budget Group news, EVP Edward P. Linnen sold 9,483 shares of the firm's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $182.32, for a total transaction of $1,728,940.56. Following the transaction, the executive vice president owned 37,932 shares of the company's stock, valued at approximately $6,915,762.24. This trade represents a 20.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Pentwater Capital Management L sold 3,347 shares of the firm's stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $438.74, for a total value of $1,468,462.78. Following the transaction, the insider directly owned 6,177,100 shares in the company, valued at approximately $2,710,140,854. The trade was a 0.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 16,299 shares of company stock worth $3,836,012 in the last ninety days. 50.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Parallel Advisors LLC boosted its holdings in shares of Avis Budget Group by 11.6% in the first quarter. Parallel Advisors LLC now owns 587 shares of the business services provider's stock valued at $86,000 after acquiring an additional 61 shares during the period. EverSource Wealth Advisors LLC grew its position in shares of 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 worth $72,000 after acquiring an additional 70 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Avis Budget Group by 26.5% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider's stock valued at $58,000 after acquiring an additional 76 shares during the period. Oregon Public Employees Retirement Fund increased its holdings in shares of Avis Budget Group by 3.0% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 3,474 shares of the business services provider's stock valued at $507,000 after acquiring an additional 100 shares during the period. Finally, State of Michigan Retirement System raised its position in Avis Budget Group by 2.5% in the 1st quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider's stock valued at $594,000 after purchasing an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

Avis Budget Group Trading Up 5.1%

The stock has a market cap of $6.92 billion, a price-to-earnings ratio of -10.27 and a beta of 1.87. The stock's 50 day moving average is $225.26 and its two-hundred day moving average is $161.48.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share (EPS) for the quarter, missing the consensus estimate of ($6.82) by ($1.19). The business had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.43 billion. During the same quarter in the prior year, the firm earned ($14.35) earnings per share. The business's revenue was up 4.1% compared to the same quarter last year. On average, sell-side analysts predict that Avis Budget Group, Inc. will post 2.93 EPS for the current year.

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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