Avis Budget Group Target of Unusually High Options Trading (NASDAQ:CAR)

Key Points

• Traders bought 42,326 put options on Avis on Wednesday, about a 54% increase versus the average, indicating elevated bearish bets or hedging activity in the stock.
• Avis beat Q1 revenue estimates ($2.53B vs. $2.43B) but missed on EPS with a loss of $8.01 (vs. -$7.14), which sparked an immediate sell‑off and heavy volatility—the stock traded down to $170.99 after a recent short‑squeeze-driven intraday peak near $847.70.
• Analyst sentiment has hardened to a consensus "Strong Sell" amid multiple downgrades, and large insider/major shareholder sales have added further downside pressure.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) saw some unusual options trading on Wednesday. Traders purchased 42,326 put options on the stock. This is an increase of approximately 54% compared to the average volume of 27,459 put options.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on CAR shares. Morgan Stanley cut 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 report on Friday, March 6th. Deutsche Bank Aktiengesellschaft lowered shares of Avis Budget Group from a "buy" rating to a "hold" rating and set a $128.00 price objective for the company. in a research note on Monday, April 6th. Wall Street Zen downgraded shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research note on Saturday, February 21st. JPMorgan Chase & Co. lowered Avis Budget Group from a "neutral" rating to an "underweight" rating and increased their target price for the company from $123.00 to $165.00 in a report on Thursday, April 23rd. Finally, Zacks Research cut Avis Budget Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. Three equities research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Strong Sell" and an average target price of $124.00.

Trending Headlines about Avis Budget Group

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Q1 revenue topped estimates and grew year‑over‑year, showing demand resilience despite a large GAAP loss — revenue $2.53B vs. $2.43B consensus. Zacks: Revenue Beat
• Neutral Sentiment: Trading was briefly halted this morning under an LULD pause (a mechanical price‑limit mechanism), which can amplify volatility when trading resumes.
• Neutral Sentiment: Recent extreme price action stemmed from a short‑squeeze that sent CAR from ~$148 in late March to a $847.70 intraday high, then sharply lower; that prior squeeze increases trading risk and uncertainty for investors. 247WallStreet: Short Squeeze Context
• Negative Sentiment: Q1 EPS missed expectations: a loss of $8.01 vs. consensus loss of $7.14, which triggered the immediate sell‑off in premarket/open trading and drove heavy downside pressure. 247WallStreet: Stock Plummets After Earnings
• Negative Sentiment: Major shareholder Pentwater executed large, multi‑day sales of CAR stock (recent filings show millions of shares sold across several days), adding supply pressure and signaling some insiders reduced exposure. SEC: Pentwater Filing
• Negative Sentiment: Wall Street sentiment has hardened: multiple downgrades and a consensus "Strong Sell" remain, leaving limited near‑term analyst support for a sustained rebound. MarketBeat: Analyst Coverage

Avis Budget Group Trading Down 6.1%

NASDAQ CAR traded down $11.02 on Wednesday, reaching $170.99. The stock had a trading volume of 3,012,236 shares, compared to its average volume of 2,106,187. Avis Budget Group has a 1 year low of $85.96 and a 1 year high of $847.70. The business has a 50 day moving average price of $194.95 and a 200 day moving average price of $154.01. The company has a market capitalization of $6.04 billion, a price-to-earnings ratio of -6.62 and a beta of 1.94.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share for the quarter, missing analysts' consensus estimates of ($7.14) by ($0.87). The firm had revenue of $2.53 billion during the quarter, compared to the consensus estimate of $2.43 billion. Avis Budget Group's quarterly revenue was up 4.1% on a year-over-year basis. During the same period in the previous year, the business earned ($14.35) earnings per share. On average, analysts anticipate that Avis Budget Group will post 3.87 earnings per share for the current fiscal year.

Insider Buying and Selling at Avis Budget Group

In other Avis Budget Group news, Director Lynn Krominga sold 1,950 shares of the business's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $91.54, for a total transaction of $178,503.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, major shareholder Pentwater Capital Management L sold 3,347 shares of the company's stock in a transaction dated Wednesday, April 22nd. The shares were sold at an average price of $438.74, for a total transaction of $1,468,462.78. Following the sale, the insider directly owned 6,177,100 shares of the company's stock, valued at $2,710,140,854. This represents a 0.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 50.48% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Royal Bank of Canada boosted its holdings in Avis Budget Group by 414.0% in the first 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 in the last quarter. Empowered Funds LLC increased its holdings in shares of Avis Budget Group by 10.1% during the 1st quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider's stock valued at $285,000 after acquiring an additional 343 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Avis Budget Group by 16.6% during the first 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 shares of Avis Budget Group in the second quarter valued at approximately $352,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of Avis Budget Group by 19.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock worth $72,000 after buying an additional 70 shares during the period. Institutional investors own 96.35% of the company's stock.

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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