Avis Budget Group (NASDAQ:CAR) Stock Price Down 9.7% Following Analyst Downgrade

Key Points

• Avis Budget (CAR) shares fell about 9.7% after JPMorgan downgraded the stock to an underweight rating, even as JPMorgan raised its price target to $165 from $123.
• Analyst sentiment is broadly bearish — three Hold and six Sell ratings leave a MarketBeat consensus of "Strong Sell" with a consensus target near $124, and several firms (Morgan Stanley, Goldman Sachs, Zacks, Wall Street Zen) recently cut ratings or targets.
• The stock has seen extreme volatility from a retail-driven short squeeze that later unraveled (triggering trading halts and dilution fears), while major shareholder Pentwater bought 425,000 shares at $94.26, increasing its stake to roughly 3.99 million shares.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) dropped 9.7% during trading on Friday after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. JPMorgan Chase & Co. now has a $165.00 price target on the stock, up from their previous price target of $123.00. Avis Budget Group traded as low as $216.23 and last traded at $207.0220. Approximately 1,777,956 shares changed hands during trading, a decline of 11% from the average daily volume of 1,987,325 shares. The stock had previously closed at $229.14.

A number of other analysts also recently commented on the company. Morgan Stanley dropped their price objective on 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. The Goldman Sachs Group set a $85.00 price objective on Avis Budget Group in a report on Monday, February 23rd. Wall Street Zen cut shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Avis Budget Group in a research report on Wednesday, January 21st. Finally, Zacks Research cut shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. Three research analysts have rated the stock with a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Strong Sell" and a consensus target price of $124.00.

Insider Buying and Selling at Avis Budget Group

In other news, major shareholder Pentwater Capital Management L bought 425,000 shares of the business's stock in a transaction on Friday, February 20th. The shares were bought at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the acquisition, the insider owned 3,987,100 shares in the company, valued at approximately $375,824,046. This trade represents a 11.93% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Lynn Krominga sold 1,950 shares of the stock in a transaction on Friday, February 20th. The stock was 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. Company insiders own 50.48% of the company's stock.

Avis Budget Group News Summary

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Avis hit a new all‑time high during the squeeze, showing strong retail demand and momentum before the reversal. Avis Budget (CAR) Hits New All-Time High, Stock Firm Despite ‘Sell’ Reco
• Positive Sentiment: Some legal overhang eased as investors dropped suits against management, removing a potential corporate governance distraction. Avis Budget Investors Drop Suits Against Brass Over Car Strategy
• Neutral Sentiment: Avis confirmed a Q1 2026 results date (April 29) — an upcoming catalyst that could clarify fundamentals after the volatility. Avis Budget Group to Announce First Quarter 2026 Results on April 29, 2026
• Neutral Sentiment: Multiple explainers and commentaries characterize the move as a meme‑stock short squeeze driven by retail flows and options activity — useful context but not a direct fundamental change. Inside the sharp rise and fall of Avis, the market's latest meme stock
• Neutral Sentiment: Trading was repeatedly halted today under Nasdaq LULD pauses as volatility surged, which contributed to disorderly price moves and big bid/ask gaps.
• Negative Sentiment: The short squeeze unraveled sharply, sending the stock from its intraday highs to steep losses as retail buying faded. Avis Budget (CAR) Stock Plunges 40% as Dramatic Short Squeeze Unravels
• Negative Sentiment: Analyst and market fears of a dilutive equity offering rose as the rally made such a move likely, pressuring the stock as investors priced in potential share issuance. Avis Stock Falls Again; Investors See Possible Equity Offering
• Negative Sentiment: JPMorgan downgraded CAR to underweight, increasing downside pressure by signaling professional skepticism about sustainable upside. Benzinga: JPMorgan downgrades Avis Budget
• Negative Sentiment: Coverage and market commentary highlight this as one of Avis’s most volatile, damaging sessions in decades — amplifying technical and sentiment-based selling. Avis's stock has its worst day in 28 years

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Deseret Mutual Benefit Administrators grew its position in Avis Budget Group by 102.3% in the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock valued at $28,000 after purchasing an additional 88 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its stake 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 last quarter. Quarry LP acquired a new position in shares of Avis Budget Group during the 4th quarter worth about $27,000. Basepoint Wealth LLC acquired a new position in shares of Avis Budget Group during the 4th quarter worth about $32,000. Finally, Hantz Financial Services Inc. boosted its holdings 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 buying an additional 146 shares during the period. Institutional investors own 96.35% of the company's stock.

Avis Budget Group Stock Performance

The firm has a market cap of $7.72 billion, a P/E ratio of -8.60 and a beta of 1.94. The firm's fifty day moving average is $190.67 and its 200 day moving average is $153.02.

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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