Avis Budget Group Sees Unusually Large Options Volume (NASDAQ:CAR)

Key Points

• Unusual options activity: Investors bought 22,346 put options on Avis Budget Group, a 125% increase versus the average volume of 9,953 puts.
• Big insider and major-shareholder moves: Director Lynn Krominga sold 1,950 shares at $91.54, while Pentwater Capital Management acquired 425,000 shares at $94.26, boosting its stake to 3,987,100 shares; the report says insiders own 50.48% of the stock.
• Analyst cuts and volatile stock action: Several firms trimmed price targets and ratings (MarketBeat average rating "Reduce" with an average target of $115), even as shares surged to $344.77 on heavy volume.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) was the target of some unusual options trading activity on Monday. Stock investors purchased 22,346 put options on the company. This is an increase of 125% compared to the average volume of 9,953 put options.

Insiders Place Their Bets

In other Avis Budget Group news, Director Lynn Krominga sold 1,950 shares of the business's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $91.54, for a total transaction of $178,503.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Pentwater Capital Management L acquired 425,000 shares of Avis Budget Group stock in a transaction on Friday, February 20th. The shares were bought at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the transaction, the insider owned 3,987,100 shares in the company, valued at approximately $375,824,046. This trade represents a 11.93% increase in their position. The disclosure for this purchase is available in the SEC filing. 50.48% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Avis Budget Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Deseret Mutual Benefit Administrators increased 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 purchasing an additional 88 shares during the last quarter. Caitong International Asset Management Co. Ltd increased 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 worth $27,000 after acquiring an additional 203 shares in the last quarter. Quarry LP purchased a new stake in Avis Budget Group in the 4th quarter worth approximately $27,000. Basepoint Wealth LLC purchased a new stake in Avis Budget Group in the 4th quarter worth approximately $32,000. Finally, Hantz Financial Services Inc. increased its holdings in Avis Budget Group by 136.4% in the 3rd quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider's stock worth $41,000 after acquiring an additional 146 shares in the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. Barclays dropped their price target 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. Morgan Stanley dropped their price target on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating on the stock in a research note on Friday, March 6th. The Goldman Sachs Group set a $85.00 price target on shares of Avis Budget Group in a research note on Monday, February 23rd. Deutsche Bank Aktiengesellschaft cut shares of Avis Budget Group from a "buy" rating to a "hold" rating and set a $128.00 price target on the stock. in a research note on Monday, April 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 four have assigned a Sell rating to the company's stock. According to data from MarketBeat, Avis Budget Group currently has an average rating of "Reduce" and an average price target of $115.00.

Avis Budget Group Stock Performance

Shares of NASDAQ CAR traded up $44.83 during midday trading on Monday, hitting $344.77. 2,571,594 shares of the company's stock traded hands, compared to its average volume of 1,146,825. Avis Budget Group has a 1 year low of $66.79 and a 1 year high of $347.16. The stock has a market capitalization of $12.18 billion, a price-to-earnings ratio of -13.63 and a beta of 1.94. The firm has a fifty day moving average of $129.57 and a 200 day moving average of $134.07.

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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