Shellback Capital LP Acquires Shares of 50,000 Avis Budget Group, Inc. $CAR

Key Points

• Shellback Capital LP has acquired a new position in Avis Budget Group, purchasing 50,000 shares valued at approximately $3,795,000, which represents 0.14% ownership in the company.
• Avis Budget Group reported $0.10 earnings per share, missing analyst expectations, despite having a revenue of $3.04 billion, which slightly surpassed estimates.
• Institutional investors own around 96.35% of Avis Budget Group's stock, indicating strong institutional interest in the company.

Shellback Capital LP purchased a new stake in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) during the first quarter, according to the company in its most recent disclosure with the SEC. The firm purchased 50,000 shares of the business services provider's stock, valued at approximately $3,795,000. Shellback Capital LP owned approximately 0.14% of Avis Budget Group at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in CAR. Steadfast Capital Management LP purchased a new position in Avis Budget Group during the 4th quarter worth approximately $25,747,000. Mizuho Markets Americas LLC purchased a new position in shares of Avis Budget Group in the 1st quarter valued at approximately $18,975,000. Nomura Holdings Inc. grew its stake in shares of Avis Budget Group by 93.2% in the 4th quarter. Nomura Holdings Inc. now owns 490,473 shares of the business services provider's stock valued at $39,537,000 after purchasing an additional 236,576 shares during the last quarter. Jefferies Financial Group Inc. grew its stake in shares of Avis Budget Group by 1,391.0% in the 4th quarter. Jefferies Financial Group Inc. now owns 253,200 shares of the business services provider's stock valued at $20,410,000 after purchasing an additional 236,218 shares during the last quarter. Finally, Jump Financial LLC purchased a new position in shares of Avis Budget Group in the 1st quarter valued at approximately $10,414,000. Hedge funds and other institutional investors own 96.35% of the company's stock.

Avis Budget Group Price Performance

CAR traded up $1.44 during trading on Thursday, reaching $157.22. 338,563 shares of the stock were exchanged, compared to its average volume of 1,248,261. The business's 50 day moving average price is $171.26 and its two-hundred day moving average price is $123.22. The company has a market capitalization of $5.53 billion, a price-to-earnings ratio of -2.49 and a beta of 2.11. Avis Budget Group, Inc. has a 1 year low of $54.03 and a 1 year high of $212.81.

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

Insider Buying and Selling at Avis Budget Group

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

Wall Street Analyst Weigh In

Several research analysts have weighed in on CAR shares. Bank of America reiterated an "underperform" rating and issued a $113.00 target price (down from $120.00) on shares of Avis Budget Group in a research note on Wednesday, August 20th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $196.00 price target (up from $130.00) on shares of Avis Budget Group in a research note on Thursday, July 10th. The Goldman Sachs Group restated a "sell" rating and issued a $105.00 price target (up from $87.00) on shares of Avis Budget Group in a research note on Friday, August 1st. Barclays lifted their price target on Avis Budget Group from $105.00 to $150.00 and gave the company an "equal weight" rating in a research note on Monday, August 4th. Finally, Zacks Research upgraded Avis Budget Group from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 21st. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Avis Budget Group has a consensus rating of "Reduce" and a consensus target price of $143.80.

Avis Budget Group Company Profile

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.