Avis Budget Group (NASDAQ:CAR) Shares Up 6.3% - What's Next?

Key Points

• Shares jumped 6.3% to about $198.84 on Tuesday (intraday high $198.99) on lighter-than-average volume of 833,633 shares versus a typical 2,058,169.
• Analysts are broadly negative on CAR, with a consensus rating of "Strong Sell" and an average target of $124, reflecting wide price targets (e.g., Goldman $85 to Barclays $150) and more sell than hold ratings.
• Pentwater Capital bought 425,000 shares at roughly $94.26, increasing its stake by 11.93%; the report also notes insiders own about 50.48% of the company.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report)'s share price shot up 6.3% on Tuesday . The company traded as high as $198.99 and last traded at $198.8440. 833,633 shares traded hands during mid-day trading, a decline of 59% from the average session volume of 2,058,169 shares. The stock had previously closed at $187.07.

Analysts Set New Price Targets

A number of brokerages have weighed in on CAR. The Goldman Sachs Group set a $85.00 price objective on shares of Avis Budget Group in a research report on Monday, February 23rd. Weiss Ratings restated a "sell (d)" rating on shares of Avis Budget Group in a research report on Wednesday, January 21st. Morgan Stanley reduced their price target on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating for the company in a research 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. Finally, Barclays cut shares of Avis Budget Group from an "equal weight" rating to an "underweight" rating and upped their price objective for the company from $95.00 to $150.00 in a research note on Monday, April 20th. Three investment analysts have rated the stock with a Hold rating and six have given a Sell rating to the company. According to MarketBeat.com, Avis Budget Group presently has a consensus rating of "Strong Sell" and an average target price of $124.00.

Avis Budget Group Stock Performance

The firm's 50 day moving average price is $193.75 and its two-hundred day moving average price is $153.77. The firm has a market cap of $6.53 billion, a PE ratio of -7.29 and a beta of 1.94.

Insider Activity at Avis Budget Group

In other news, major shareholder Pentwater Capital Management L purchased 425,000 shares of the company's stock in a transaction dated Friday, February 20th. The stock was acquired at an average price of $94.26 per share, with a total value of $40,060,500.00. Following the purchase, the insider directly owned 3,987,100 shares in the company, valued at approximately $375,824,046. This represents a 11.93% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Lynn Krominga sold 1,950 shares of the stock in a transaction that occurred on 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. Corporate insiders own 50.48% of the company's stock.

Institutional Trading of Avis Budget Group

Hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd boosted its position in shares of Avis Budget Group by 1,845.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider's stock worth $27,000 after purchasing an additional 203 shares during the period. Quarry LP purchased a new position in shares of Avis Budget Group during the 4th quarter worth approximately $27,000. Deseret Mutual Benefit Administrators boosted its position in shares of Avis Budget Group by 102.3% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock worth $28,000 after purchasing an additional 88 shares during the period. Basepoint Wealth LLC purchased a new position in shares of Avis Budget Group during the 4th quarter worth approximately $32,000. Finally, Hantz Financial Services Inc. boosted its position in shares of Avis Budget Group by 136.4% during the 3rd quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider's stock worth $41,000 after purchasing an additional 146 shares during the period. Hedge funds and other institutional investors own 96.35% of the company's stock.

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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