Avis Budget Group (NASDAQ:CAR) Trading 7.6% Higher - Here's Why

Key Points

• Avis Budget Group shares rose 7.6% in Thursday trading, reaching as high as $157.05 after closing at $146.94 the prior day.
• Analysts remain cautious overall, even after some target price increases; the stock currently carries a consensus rating of “Reduce” with an average target price of $131.50.
• The company’s latest quarterly results were mixed: revenue beat expectations at $2.53 billion and rose 4.1% year over year, but EPS missed estimates at $(8.01) per share.

Shares of Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) were up 7.6% during trading on Thursday . The company traded as high as $157.05 and last traded at $158.0410. 275,695 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 1,757,953 shares. The stock had previously closed at $146.94.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. JPMorgan Chase & Co. raised their target price on Avis Budget Group from $155.00 to $170.00 and gave the company an "underweight" rating in a research note on Tuesday, June 23rd. Zacks Research upgraded Avis Budget Group from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $125.00 price objective on shares of Avis Budget Group in a research note on Friday, May 1st. Jefferies Financial Group downgraded Avis Budget Group from a "buy" rating to a "hold" rating and lifted their price objective for the stock from $112.00 to $160.00 in a report on Friday, May 1st. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a research report on Wednesday, May 20th. Six analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $131.50.

Avis Budget Group Stock Performance

The firm has a market capitalization of $5.59 billion, a P/E ratio of -8.29 and a beta of 1.87. The stock has a fifty day moving average price of $187.61 and a two-hundred day moving average price of $162.94.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last announced 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 company had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.43 billion. Avis Budget Group's revenue was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($14.35) EPS. As a group, research analysts anticipate that Avis Budget Group, Inc. will post 2.93 earnings per share for the current fiscal year.

Insider Activity

In related news, EVP Ravi Simhambhatla sold 3,469 shares of Avis Budget Group stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $184.09, for a total value of $638,608.21. Following the transaction, the executive vice president directly owned 13,876 shares in the company, valued at $2,554,432.84. The trade was a 20.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Pentwater Capital Management L sold 3,347 shares of the business'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 sale, the insider 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 16,299 shares of company stock valued at $3,836,012. Insiders own 50.48% of the company's stock.

Institutional Investors Weigh In On Avis Budget Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CAR. UBS Group AG boosted its position in shares of Avis Budget Group by 37.3% in the fourth quarter. UBS Group AG now owns 2,964,807 shares of the business services provider's stock valued at $380,444,000 after acquiring an additional 804,814 shares during the period. Morgan Stanley boosted its position in shares of Avis Budget Group by 38.1% during the 4th quarter. Morgan Stanley now owns 1,975,675 shares of the business services provider's stock valued at $253,519,000 after acquiring an additional 545,574 shares in the last quarter. National Bank of Canada FI increased its stake in Avis Budget Group by 46.6% in the third quarter. National Bank of Canada FI now owns 1,290,000 shares of the business services provider's stock valued at $207,142,000 after acquiring an additional 409,761 shares during the period. State Street Corp raised its position in Avis Budget Group by 1.0% in the second quarter. State Street Corp now owns 713,127 shares of the business services provider's stock worth $120,554,000 after purchasing an additional 7,318 shares in the last quarter. Finally, Cibc World Market Inc. raised its position in Avis Budget Group by 75.0% in the fourth quarter. Cibc World Market Inc. now owns 700,005 shares of the business services provider's stock worth $89,825,000 after purchasing an additional 300,000 shares in the last quarter. 96.35% of the stock is owned by hedge funds and other institutional investors.

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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