Avis Budget Group (NASDAQ:CAR) Trading Down 8.2% - Should You Sell?

Key Points

• Avis Budget Group shares fell 8.2% to about $139.56, significantly below their 50-day and 200-day moving averages near $168.
• Analysts maintain a cautious outlook: six rate the stock Hold and four rate it Sell, resulting in a consensus “Reduce” rating and an average price target of $132.75.
• The company reported quarterly EPS of $0.98, missing the $2.05 consensus estimate, while revenue of $3.0 billion fell short of expectations and declined 1.3% year over year.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) shares fell 8.2% during trading on Friday . The stock traded as low as $139.72 and last traded at $139.56. Approximately 106,172 shares traded hands during mid-day trading, a decline of 93% from the average session volume of 1,585,436 shares. The stock had previously closed at $152.00.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CAR. Zacks Research raised shares of Avis Budget Group from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. Wall Street Zen raised shares of Avis Budget Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Jefferies Financial Group downgraded shares of Avis Budget Group from a "buy" rating to a "hold" rating and boosted their target price for the company from $112.00 to $160.00 in a research note on Friday, May 1st. The Goldman Sachs Group increased their target price on Avis Budget Group from $85.00 to $95.00 and gave the company a "sell" rating in a report on Friday, July 24th. Finally, Susquehanna raised their target price on Avis Budget Group from $105.00 to $140.00 and gave the stock a "neutral" rating in a research report on Friday, May 8th. Six equities research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $132.75.

Avis Budget Group Stock Performance

The stock has a market cap of $4.80 billion, a price-to-earnings ratio of -7.47 and a beta of 1.91. The company's 50 day simple moving average is $168.44 and its two-hundred day simple moving average is $167.33.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its earnings results on Tuesday, July 28th. The business services provider reported $0.98 EPS for the quarter, missing analysts' consensus estimates of $2.05 by ($1.07). The business had revenue of $3 billion during the quarter, compared to analysts' expectations of $3.10 billion. During the same quarter in the prior year, the business earned $0.10 EPS. Avis Budget Group's quarterly revenue was down 1.3% on a year-over-year basis. On average, equities research analysts predict that Avis Budget Group, Inc. will post 2.91 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Avis Budget Group

Institutional investors and hedge funds have recently modified their holdings of the business. Royal Bank of Canada increased its position in Avis Budget Group by 414.0% during the first quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider's stock worth $1,355,000 after buying an additional 14,385 shares during the last quarter. Empowered Funds LLC boosted its stake in shares of 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 acquiring an additional 343 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of 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 valued at $4,935,000 after acquiring an additional 9,246 shares during the last quarter. Prudential Financial Inc. bought a new position in shares of Avis Budget Group in the 2nd quarter valued at approximately $352,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Avis Budget Group by 19.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock valued at $72,000 after acquiring an additional 70 shares in the last quarter. Institutional investors and hedge funds own 96.35% of the company's stock.

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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