Avis Budget Group (NASDAQ:CAR) Trading Up 7.1% - Should You Buy?

Key Points

• Avis Budget Group shares rose 7.1% in midday trading, reaching as high as $174.00 after closing at $165.10 the prior day.
• Analyst sentiment remains cautious: several firms have issued mixed ratings, with the consensus around “Reduce” and an average price target of $125.25.
• The company recently reported earnings of -$8.01 per share, missing estimates, though revenue of $2.53 billion topped expectations and was up 4.1% year over year.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) shares were up 7.1% during mid-day trading on Thursday . The stock traded as high as $174.00 and last traded at $176.85. Approximately 45,944 shares traded hands during trading, a decline of 98% from the average daily volume of 1,974,071 shares. The stock had previously closed at $165.10.

Analyst Ratings Changes

Several analysts have recently issued reports on CAR shares. Susquehanna upped their price objective on Avis Budget Group from $105.00 to $140.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. JPMorgan Chase & Co. decreased their price objective on Avis Budget Group from $165.00 to $140.00 and set an "underweight" rating on the stock in a report on Friday, May 1st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a report on Wednesday, May 20th. Zacks Research raised Avis Budget Group from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 6th. Finally, The Goldman Sachs Group set a $85.00 price target on Avis Budget Group in a report on Monday, February 23rd. Five investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $125.25.

Avis Budget Group Stock Performance

The company has a fifty day moving average of $217.95 and a two-hundred day moving average of $155.60. The company has a market cap of $6.23 billion, a PE ratio of -9.27 and a beta of 1.91.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share 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 the consensus estimate of $2.43 billion. During the same quarter in the previous year, the firm earned ($14.35) EPS. The business's revenue for the quarter was up 4.1% compared to the same quarter last year. On average, equities analysts forecast that Avis Budget Group, Inc. will post 2.93 EPS for the current year.

Insider Activity at Avis Budget Group

In related news, major shareholder Pentwater Capital Management L sold 3,347 shares of the stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $438.74, for a total transaction 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. This represents a 0.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Edward P. Linnen sold 9,483 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $182.32, for a total value of $1,728,940.56. Following the sale, the executive vice president owned 37,932 shares in the company, valued at $6,915,762.24. The trade was a 20.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 16,299 shares of company stock worth $3,836,012. Company insiders own 50.48% of the company's stock.

Hedge Funds Weigh In On Avis Budget Group

Hedge funds have recently bought and sold shares of the business. UBS Group AG grew its position in shares of Avis Budget Group by 37.3% during the 4th quarter. UBS Group AG now owns 2,964,807 shares of the business services provider's stock worth $380,444,000 after buying an additional 804,814 shares in the last quarter. Assenagon Asset Management S.A. grew its position in shares of Avis Budget Group by 40.3% during the 4th quarter. Assenagon Asset Management S.A. now owns 539,395 shares of the business services provider's stock worth $69,215,000 after buying an additional 154,994 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp grew its position in shares of Avis Budget Group by 1,443.0% during the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 15,955 shares of the business services provider's stock worth $2,562,000 after buying an additional 14,921 shares in the last quarter. M&T Bank Corp grew its position in shares of Avis Budget Group by 287.5% during the 4th quarter. M&T Bank Corp now owns 11,192 shares of the business services provider's stock worth $1,436,000 after buying an additional 8,304 shares in the last quarter. Finally, Intech Investment Management LLC grew its position in shares of Avis Budget Group by 203.8% during the 3rd quarter. Intech Investment Management LLC now owns 37,467 shares of the business services provider's stock worth $6,016,000 after buying an additional 25,135 shares in the last quarter. 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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