Avis Budget Group (NASDAQ:CAR) Upgraded to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Avis Budget Group from "strong sell" to "hold", but analysts remain mixed (five Hold, five Sell) with a consensus rating of "Reduce" and an average price target of $123.75.
• The company reported Q1 EPS of ($8.01), missing estimates by $1.19 while revenue of $2.53 billion beat expectations, and the stock opened down about 6.2% at $154.06.
• Senior insiders sold meaningful stakes (e.g., EVP Edward Linnen sold 9,483 shares for ~$1.73M; total insider sales in the quarter were 18,249 shares worth ~$4.01M), even as several institutions increased positions and the article notes institutional ownership at ~96.35%.

Avis Budget Group (NASDAQ:CAR - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Other equities research analysts also recently issued reports about the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $125.00 price target on shares of Avis Budget Group in a research note on Friday, May 1st. The Goldman Sachs Group set a $85.00 price target on Avis Budget Group in a research note on Monday, February 23rd. Barclays cut their price target on Avis Budget Group from $150.00 to $140.00 and set an "underweight" rating for the company in a research note on Tuesday. Morgan Stanley cut their price objective on Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating for the company in a research note on Friday, March 6th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Five equities research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $123.75.

Avis Budget Group Stock Down 6.2%

Avis Budget Group stock opened at $154.06 on Wednesday. The business has a 50-day simple moving average of $201.79 and a two-hundred day simple moving average of $154.59. The company has a market cap of $5.44 billion, a P/E ratio of -8.09 and a beta of 1.91. Avis Budget Group has a 52-week low of $85.96 and a 52-week high of $847.70.

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 (EPS) for the quarter, missing analysts' consensus estimates of ($6.82) by ($1.19). The business had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.43 billion. The firm's revenue for the quarter was up 4.1% on a year-over-year basis. During the same period in the prior year, the company posted ($14.35) EPS. Research analysts anticipate that Avis Budget Group will post 3.72 EPS for the current fiscal year.

Insider Buying and Selling

In related news, EVP Edward P. Linnen sold 9,483 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $182.32, for a total transaction of $1,728,940.56. Following the completion of the transaction, the executive vice president directly owned 37,932 shares in the company, valued at approximately $6,915,762.24. The trade was a 20.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Ravi Simhambhatla sold 3,469 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $184.09, for a total value of $638,608.21. Following the transaction, the executive vice president owned 13,876 shares of the company's stock, valued at approximately $2,554,432.84. This trade represents a 20.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 18,249 shares of company stock valued at $4,014,515. Insiders own 50.48% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CAR. Royal Bank of Canada boosted its stake in Avis Budget Group by 414.0% in the 1st quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider's stock worth $1,355,000 after purchasing an additional 14,385 shares during the period. Empowered Funds LLC boosted its stake in Avis Budget Group by 10.1% in the 1st quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider's stock worth $285,000 after purchasing an additional 343 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Avis Budget Group by 16.6% in 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 worth $4,935,000 after purchasing an additional 9,246 shares during the period. Prudential Financial Inc. bought a new position in Avis Budget Group in the 2nd quarter worth approximately $352,000. Finally, EverSource Wealth Advisors LLC boosted its stake in 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 worth $72,000 after purchasing an additional 70 shares during the period. 96.35% of the stock is currently owned by 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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