Avis Budget Group (NASDAQ:CAR) Stock Price Down 5.1% Following Analyst Downgrade

Key Points

• Shares fell about 5.1% after JPMorgan cut its price target from $165 to $140 and moved to an underweight rating, with the stock trading down to the mid-$170s from a prior close of $185.55.
• Analyst sentiment is largely negative — MarketBeat shows an average rating of Strong Sell and an average price target of $125, with multiple firms (Goldman, Morgan Stanley, Zacks, Wall Street Zen, Barclays) recently lowering ratings or targets.
• Avis missed Q1 EPS (−$8.01 vs. −$6.82 expected) despite a 4.1% revenue increase to $2.53B, and insiders sold roughly 18,249 shares (~$4.01M) over the last quarter.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) were down 5.1% during trading on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $165.00 to $140.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Avis Budget Group traded as low as $180.12 and last traded at $176.0910. Approximately 136,359 shares changed hands during trading, a decline of 94% from the average daily volume of 2,145,188 shares. The stock had previously closed at $185.55.

Several other analysts have also recently weighed in on CAR. Wall Street Zen cut shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research note on Saturday, February 21st. Zacks Research downgraded shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. The Goldman Sachs Group set a $85.00 price target on shares of Avis Budget Group in a research report on Monday, February 23rd. Morgan Stanley dropped 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. Finally, Barclays downgraded shares of Avis Budget Group from an "equal weight" rating to an "underweight" rating and lifted their price target for the company from $95.00 to $150.00 in a research report on Monday, April 20th. Four research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company's stock. According to data from MarketBeat, Avis Budget Group currently has an average rating of "Strong Sell" and an average price target of $125.00.

Insider Activity

In other news, Director Lynn Krominga sold 1,950 shares of the business's stock in a transaction that occurred on 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 legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Ravi Simhambhatla sold 3,469 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $184.09, for a total transaction of $638,608.21. Following the completion of the transaction, the executive vice president owned 13,876 shares of the company's stock, valued at $2,554,432.84. The trade was a 20.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 18,249 shares of company stock valued at $4,014,515 over the last quarter. 50.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Avis Budget Group

A number of institutional investors have recently added to or reduced their stakes in CAR. Royal Bank of Canada increased its position in Avis Budget Group by 414.0% during the 1st quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider's stock worth $1,355,000 after purchasing an additional 14,385 shares in the last quarter. Empowered Funds LLC increased its position in Avis Budget Group by 10.1% during the 1st quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider's stock worth $285,000 after purchasing an additional 343 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Avis Budget Group by 16.6% during the 1st 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 worth $4,935,000 after purchasing an additional 9,246 shares in the last quarter. Prudential Financial Inc. bought a new stake in Avis Budget Group during the 2nd quarter worth approximately $352,000. Finally, EverSource Wealth Advisors LLC grew its holdings in Avis Budget Group by 19.6% during the 2nd 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. 96.35% of the stock is currently owned by institutional investors and hedge funds.

Avis Budget Group Stock Performance

The stock has a market capitalization of $6.14 billion, a P/E ratio of -9.13 and a beta of 1.91. The stock's fifty day simple moving average is $197.79 and its two-hundred day simple moving average is $154.41.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted its earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share for the quarter, missing analysts' consensus estimates of ($6.82) by ($1.19). The business had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $2.43 billion. During the same quarter last year, the firm earned ($14.35) earnings per share. Avis Budget Group's revenue was up 4.1% on a year-over-year basis. As a group, analysts expect that Avis Budget Group, Inc. will post 3.87 earnings per share for the current fiscal year.

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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