Avis Budget Group (NASDAQ:CAR) Shares Up 5.1% - Still a Buy?

Key Points

• Shares rose 5.1% intraday to as high as $284.75 (last around $274.55) on heavy volume (~1.65M shares, ~59% above average).
• Analysts are largely negative: the consensus rating is "Reduce" with a consensus target price of $115, and several recent downgrades and price-target cuts (e.g., Barclays to $95).
• Pentwater Capital purchased 425,000 shares at about $94.26 (~$40.06M), increasing its stake by 11.93% to roughly 3.99M shares, signaling a sizable investor buy despite weak analyst sentiment.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) shot up 5.1% during trading on Thursday . The company traded as high as $284.75 and last traded at $274.5540. 1,648,599 shares were traded during mid-day trading, an increase of 59% from the average session volume of 1,035,854 shares. The stock had previously closed at $261.35.

Wall Street Analyst Weigh In

A number of research firms recently commented on CAR. Barclays dropped their price objective on 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. Weiss Ratings reiterated a "sell (d)" rating on shares of Avis Budget Group in a report on Wednesday, January 21st. Deutsche Bank Aktiengesellschaft downgraded 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. Zacks Research downgraded Avis Budget Group from a "hold" rating to a "strong sell" rating in a report on Thursday, February 19th. Finally, Wall Street Zen downgraded Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Five equities research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, Avis Budget Group currently has a consensus rating of "Reduce" and a consensus target price of $115.00.

Avis Budget Group Price Performance

The stock has a market capitalization of $9.50 billion, a price-to-earnings ratio of -10.67 and a beta of 1.94. The business has a 50 day simple moving average of $122.25 and a 200-day simple moving average of $132.30.

Insider Transactions at Avis Budget Group

In other Avis Budget Group news, major shareholder Pentwater Capital Management L bought 425,000 shares of the firm's stock in a transaction on Friday, February 20th. The stock was purchased 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 in the company, 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 legal filing with the SEC, which is available at the SEC website. Also, 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 SEC filing for this sale provides additional information. 52.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd boosted its position in shares of 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 worth $27,000 after buying an additional 203 shares during the period. Quarry LP acquired a new position in shares of Avis Budget Group during the fourth quarter worth about $27,000. Deseret Mutual Benefit Administrators boosted its position in shares of Avis Budget Group by 102.3% during the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock worth $28,000 after buying an additional 88 shares during the period. Basepoint Wealth LLC acquired a new position in shares of Avis Budget Group during the fourth quarter worth about $32,000. Finally, Hantz Financial Services Inc. boosted its position in shares of Avis Budget Group by 136.4% during the third quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider's stock worth $41,000 after buying an additional 146 shares during the period. 96.35% of the stock is owned by institutional investors and hedge funds.

About Avis Budget Group

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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