Canada Pension Plan Investment Board Makes New Investment in Avis Budget Group, Inc. $CAR

Key Points

• Canada Pension Plan Investment Board acquired 22,600 Avis Budget Group shares worth approximately $3.34 million, representing about 0.06% of the company. Institutional investors collectively own 96.35% of CAR.
• Avis reported quarterly EPS of $0.98, well below the $2.05 analyst consensus, while revenue declined 1.3% year over year to about $3.0 billion. Analysts expect full-year EPS of just $1.36, contributing to an overall “Reduce” rating and average price target of $135.57.
• The stock faces additional uncertainty from securities litigation notices tied to reported Avis share and options ownership, while CAR’s price remains highly volatile and below its 50-day and 200-day moving averages.

Canada Pension Plan Investment Board bought a new stake in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 22,600 shares of the business services provider's stock, valued at approximately $3,341,000. Canada Pension Plan Investment Board owned about 0.06% of Avis Budget Group as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also made changes to their positions in the company. Royal Bank of Canada boosted its position in shares of 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 buying an additional 14,385 shares in the last quarter. Empowered Funds LLC increased its holdings in 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 in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Avis Budget Group by 16.6% during 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 valued at $4,935,000 after acquiring an additional 9,246 shares in the last quarter. Prudential Financial Inc. acquired a new position in Avis Budget Group during the second quarter worth about $352,000. Finally, EverSource Wealth Advisors LLC raised its position in Avis Budget Group by 19.6% during the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock worth $72,000 after acquiring an additional 70 shares during the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

Key Headlines Impacting Avis Budget Group

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

• Neutral Sentiment: Several law firms reminded Avis investors that September 29, 2026 is the deadline to seek appointment as lead plaintiff in a securities class action. The notices are largely procedural and encourage investors with losses to contact counsel. Some filings identify the class period as February 20, 2025–April 21, 2026, while another notice cites February 20, 2026–April 21, 2026. Avis Budget Group class action deadline notice
• Negative Sentiment: The lawsuit alleges violations of federal securities laws by Pentwater Capital Management and its founder and chief investment officer, Matthew Halbower, in connection with reported ownership of Avis shares and call options before a sharp decline in Avis stock. Although the principal defendants named in the notices are Pentwater and Halbower rather than Avis itself, the litigation creates legal, reputational, and investor-confidence overhang for CAR. The allegations have not been proven. Pomerantz Avis class action filing
• Negative Sentiment: Recent earnings momentum is also weighing on the stock. Avis reported quarterly EPS of $0.98, missing the $2.05 consensus estimate, while revenue of approximately $3.0 billion fell short of the $3.1 billion forecast and declined 1.3% year over year. Analysts expect only $1.36 in full-year EPS, reinforcing concerns about profitability and operating conditions. Why Avis Budget is down since earnings
• Negative Sentiment: GuruFocus estimated Avis’s GF Value at $129.16 versus a recent reference price of $139.49, suggesting the shares may still appear overvalued despite their substantial decline and high volatility. GuruFocus Avis valuation analysis

Avis Budget Group Stock Performance

NASDAQ:CAR opened at $138.12 on Monday. The firm has a market cap of $4.88 billion, a price-to-earnings ratio of -7.60 and a beta of 1.92. The company's 50-day moving average is $152.67 and its two-hundred day moving average is $170.25. Avis Budget Group, Inc. has a 12-month low of $85.96 and a 12-month high of $847.70.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The business services provider reported $0.98 EPS for the quarter, missing analysts' consensus estimates of $2.05 by ($1.07). The firm had revenue of $3 billion for the quarter, compared to analyst estimates of $3.10 billion. Avis Budget Group's quarterly revenue was down 1.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.10 EPS. On average, equities research analysts forecast that Avis Budget Group, Inc. will post 1.36 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Morgan Stanley increased their price target on shares of Avis Budget Group from $97.00 to $99.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 20th. Barclays set a $160.00 price objective on Avis Budget Group and gave the stock an "equal weight" rating in a research report on Monday, June 8th. Susquehanna upped their target price on Avis Budget Group from $105.00 to $140.00 and gave the company a "neutral" rating in a research note on Friday, May 8th. Zacks Research cut Avis Budget Group from a "hold" rating to a "strong sell" rating in a report on Monday, August 3rd. Finally, The Goldman Sachs Group raised their price target on Avis Budget Group from $85.00 to $95.00 and gave the stock a "sell" rating in a research report on Friday, July 24th. Five equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat.com, Avis Budget Group has an average rating of "Reduce" and an average price target of $135.57.

Avis Budget Group 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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