Vanguard Group Inc. Raises Position in Avis Budget Group, Inc. $CAR

Key Points

• Vanguard Group Inc. increased its stakes in Avis Budget Group by 2.9%, owning approximately 4.58% of the company's shares valued at about $122.2 million.
• Avis Budget Group reported earnings of $0.10 per share, significantly missing expectations of $2.02, despite slightly exceeding revenue estimates.
• Insider trading activity included EVP Edward P. Linnen and Director Bernardo Hees selling substantial shares, indicating a notable decrease in their ownership percentages.

Vanguard Group Inc. increased its position in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) by 2.9% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,610,186 shares of the business services provider's stock after acquiring an additional 46,038 shares during the quarter. Vanguard Group Inc. owned about 4.58% of Avis Budget Group worth $122,213,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the company. Nomura Holdings Inc. grew its position in shares of Avis Budget Group by 93.2% during 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 in the last quarter. Steadfast Capital Management LP purchased a new stake in shares of Avis Budget Group in the fourth quarter worth $25,747,000. Jefferies Financial Group Inc. boosted its stake in Avis Budget Group by 1,391.0% during the fourth quarter. Jefferies Financial Group Inc. now owns 253,200 shares of the business services provider's stock valued at $20,410,000 after buying an additional 236,218 shares during the period. Northern Trust Corp grew its position in Avis Budget Group by 21.0% during the fourth quarter. Northern Trust Corp now owns 156,176 shares of the business services provider's stock worth $12,589,000 after buying an additional 27,127 shares in the last quarter. Finally, SG Americas Securities LLC increased its stake in Avis Budget Group by 281.1% in the 1st quarter. SG Americas Securities LLC now owns 123,176 shares of the business services provider's stock worth $9,349,000 after acquiring an additional 90,851 shares during the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

Avis Budget Group Trading Up 3.5%

Shares of CAR stock traded up $5.20 during trading hours on Friday, hitting $155.49. 1,290,462 shares of the company's stock were exchanged, compared to its average volume of 1,267,496. The company has a market capitalization of $5.47 billion, a PE ratio of -2.46 and a beta of 2.19. Avis Budget Group, Inc. has a 12-month low of $54.03 and a 12-month high of $212.81. The business's 50 day simple moving average is $170.75 and its 200-day simple moving average is $117.60.

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

Analyst Ratings Changes

Several research analysts recently weighed in on CAR shares. The Goldman Sachs Group restated a "sell" rating and issued a $105.00 price objective (up from $87.00) on shares of Avis Budget Group in a research report on Friday, August 1st. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $196.00 price target (up previously from $130.00) on shares of Avis Budget Group in a research note on Thursday, July 10th. Wall Street Zen upgraded shares of Avis Budget Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 3rd. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $155.00 price objective on shares of Avis Budget Group in a report on Thursday, July 31st. Finally, Barclays increased their target price 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. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $143.80.

Insider Transactions at Avis Budget Group

In related news, Director Bernardo Hees sold 402,200 shares of the firm's stock in a transaction dated 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 sale, the director directly owned 116,521 shares of the company's stock, valued at $18,246,023.39. This trade represents a 77.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Edward P. Linnen sold 10,000 shares of the business's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $156.83, for a total value of $1,568,300.00. Following the transaction, the executive vice president owned 40,915 shares in the company, valued at approximately $6,416,699.45. This represents a 19.64% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 52.80% of the company's stock.

Avis Budget Group 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.