Avis Budget Group (NASDAQ:CAR) Trading Up 9.4% - What's Next?

Key Points

• Shares jumped 9.4% on Wednesday, trading as high as about $157.73 and last near $159, up from a $145.85 close, on volume of 616,786 shares (roughly 23% below average).
• Wall Street sentiment is broadly negative with an average rating of "Reduce" and a consensus target of $124.71, while some firms have cut targets to the $85–$95 range.
• Pentwater Capital bought 425,000 shares at $94.26 (an 11.9% increase in its position), even as the company shows a market cap of $5.68 billion and a negative P/E of -6.36.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) shot up 9.4% on Wednesday . The company traded as high as $157.73 and last traded at $159.5020. 616,786 shares traded hands during trading, a decline of 23% from the average session volume of 799,857 shares. The stock had previously closed at $145.85.

Wall Street Analysts Forecast Growth

Several analysts recently commented on CAR shares. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Avis Budget Group in a report on Wednesday, January 21st. The Goldman Sachs Group set a $85.00 price objective on Avis Budget Group in a research report on Monday, February 23rd. Barclays dropped their price objective on shares of Avis Budget Group from $120.00 to $95.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 26th. Zacks Research cut shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 19th. Finally, Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, Avis Budget Group presently has an average rating of "Reduce" and a consensus target price of $124.71.

Avis Budget Group Stock Performance

The stock has a market cap of $5.68 billion, a price-to-earnings ratio of -6.36 and a beta of 2.32. The business's 50 day moving average is $111.10 and its 200-day moving average is $129.67.

Insider Buying and Selling

In other news, major shareholder Pentwater Capital Management L bought 425,000 shares of the firm's stock in a transaction dated Friday, February 20th. The shares were acquired at an average price of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the transaction, the insider directly owned 3,987,100 shares in the company, valued at $375,824,046. The trade was a 11.93% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Lynn Krominga sold 1,950 shares of the company's stock in a transaction dated Friday, February 20th. The shares were 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. 52.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Avis Budget Group

Hedge funds and other institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd boosted its holdings in Avis Budget Group by 1,845.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider's stock valued at $27,000 after purchasing an additional 203 shares during the last quarter. Quarry LP acquired a new stake in shares of Avis Budget Group during the 4th quarter worth approximately $27,000. Deseret Mutual Benefit Administrators raised its position in shares of Avis Budget Group by 102.3% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider's stock valued at $28,000 after buying an additional 88 shares during the period. Basepoint Wealth LLC acquired a new position in Avis Budget Group in the fourth quarter valued at approximately $32,000. Finally, Hantz Financial Services Inc. lifted its holdings in Avis Budget Group by 136.4% in the third quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider's stock valued at $41,000 after acquiring an additional 146 shares during the last quarter. 96.35% of the stock is currently owned by institutional investors and hedge funds.

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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