Avis Budget Group (NASDAQ:CAR) Upgraded by Zacks Research to Hold Rating

Key Points

• Avis Budget Group has been upgraded by Zacks Research from a "strong sell" to a "hold" rating, indicating a shift in analysts' outlook on the company.
• The company reported a loss of $1.92 per share in its recent quarterly earnings, missing the consensus estimate of $2.02.
• As of now, Avis Budget Group's stock has a consensus rating of "Reduce" with an average target price of $143.80.

Avis Budget Group (NASDAQ:CAR - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Thursday, August 21st,Zacks.com reports. Zacks Research also issued estimates for Avis Budget Group's Q3 2025 earnings at $8.99 EPS, Q4 2025 earnings at $0.86 EPS, FY2025 earnings at ($4.40) EPS, Q1 2026 earnings at ($1.83) EPS, Q2 2026 earnings at $3.42 EPS, Q3 2026 earnings at $6.56 EPS, Q4 2026 earnings at $1.41 EPS, FY2026 earnings at $9.56 EPS, Q1 2027 earnings at $1.56 EPS, Q2 2027 earnings at $2.95 EPS and FY2027 earnings at $10.32 EPS.

Several other brokerages also recently commented on CAR. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $155.00 price objective on shares of Avis Budget Group in a research note on Thursday, July 31st. Bank of America reissued an "underperform" rating and issued a $113.00 price objective (down previously from $120.00) on shares of Avis Budget Group in a research note on Wednesday, August 20th. Wall Street Zen raised shares of Avis Budget Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 3rd. The Goldman Sachs Group reissued a "sell" rating and issued a $105.00 price objective (up previously from $87.00) on shares of Avis Budget Group in a research note on Friday, August 1st. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $196.00 price objective (up previously from $130.00) on shares of Avis Budget Group in a research note on Thursday, July 10th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus price target of $143.80.

Avis Budget Group Trading Up 0.8%

NASDAQ CAR traded up $1.21 during trading on Thursday, reaching $158.16. The company's stock had a trading volume of 128,642 shares, compared to its average volume of 1,279,624. The firm has a market capitalization of $5.57 billion, a price-to-earnings ratio of -2.50 and a beta of 2.19. Avis Budget Group has a 12 month low of $54.03 and a 12 month high of $212.81. The firm has a 50 day moving average price of $172.31 and a 200 day moving average price of $118.57.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The business services provider reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.02 by ($1.92). Avis Budget Group had a negative net margin of 19.06% and a negative return on equity of 14.74%. The business had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $3.02 billion. During the same period in the prior year, the firm earned $0.41 EPS. The business's revenue for the quarter was down .3% on a year-over-year basis. On average, equities analysts forecast that Avis Budget Group will post 8.91 EPS for the current fiscal year.

Insider Buying and Selling at Avis Budget Group

In other news, EVP Edward P. Linnen sold 10,000 shares of the stock in a transaction on Friday, August 15th. The shares were sold at an average price of $156.83, for a total transaction of $1,568,300.00. Following the completion of the sale, the executive vice president directly owned 40,915 shares in the company, valued at $6,416,699.45. This represents a 19.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Bernardo Hees sold 402,200 shares of the stock in a transaction on Monday, August 4th. The stock was sold at an average price of $156.59, for a total transaction of $62,980,498.00. Following the sale, the director owned 116,521 shares of the company's stock, valued at approximately $18,246,023.39. This trade represents a 77.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 52.80% of the company's stock.

Institutional Investors Weigh In On Avis Budget Group

Large investors have recently modified their holdings of the company. UMB Bank n.a. increased its position in shares of Avis Budget Group by 106.9% during the first quarter. UMB Bank n.a. now owns 478 shares of the business services provider's stock worth $36,000 after buying an additional 247 shares during the period. Fifth Third Bancorp increased its position in shares of Avis Budget Group by 32.6% during the second quarter. Fifth Third Bancorp now owns 228 shares of the business services provider's stock worth $39,000 after buying an additional 56 shares during the period. Caitong International Asset Management Co. Ltd increased its position in shares of Avis Budget Group by 421.1% during the first quarter. Caitong International Asset Management Co. Ltd now owns 839 shares of the business services provider's stock worth $64,000 after buying an additional 678 shares during the period. Quarry LP increased its position in shares of Avis Budget Group by 399.5% during the first quarter. Quarry LP now owns 909 shares of the business services provider's stock worth $69,000 after buying an additional 727 shares during the period. Finally, EverSource Wealth Advisors LLC grew its holdings in Avis Budget Group by 19.6% in the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock worth $72,000 after purchasing an additional 70 shares during the period. 96.35% of the stock is currently owned by institutional investors and hedge funds.

About Avis Budget Group

Avis Budget Group, Inc engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean.