Cibc World Market Inc. Boosts Holdings in Avis Budget Group, Inc. $CAR

Key Points

• CIBC World Market Inc. increased its stake in Avis Budget Group by 75% in the fourth quarter, adding 300,000 shares and ending with 700,005 shares valued at about $89.8 million.
• Several other institutional investors also moved into the stock, while insiders were net sellers: EVP Ravi Simhambhatla and EVP Edward P. Linnen both sold shares, and insiders sold 16,299 shares over the last 90 days.
• Analyst sentiment remains cautious, with five Hold and five Sell ratings and a consensus “Reduce” rating; Avis Budget reported a wider-than-expected quarterly loss of $8.01 per share despite revenue topping estimates.

Cibc World Market Inc. grew its holdings in shares of Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) by 75.0% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 700,005 shares of the business services provider's stock after acquiring an additional 300,000 shares during the quarter. Cibc World Market Inc. owned 1.99% of Avis Budget Group worth $89,825,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in the business. AXQ Capital LP raised its stake in shares of Avis Budget Group by 5.3% during the fourth quarter. AXQ Capital LP now owns 2,900 shares of the business services provider's stock worth $372,000 after acquiring an additional 145 shares in the last quarter. Essex Financial Services Inc. purchased a new position in shares of Avis Budget Group during the fourth quarter worth approximately $240,000. MUFG Securities EMEA plc purchased a new position in shares of Avis Budget Group during the fourth quarter worth approximately $25,664,000. Norges Bank purchased a new position in shares of Avis Budget Group during the fourth quarter worth approximately $45,900,000. Finally, Basepoint Wealth LLC purchased a new position in shares of Avis Budget Group during the fourth quarter worth approximately $32,000. 96.35% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, EVP Ravi Simhambhatla sold 3,469 shares of the business's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $184.09, for a total transaction of $638,608.21. Following the sale, the executive vice president owned 13,876 shares in the company, valued at approximately $2,554,432.84. The trade was a 20.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Edward P. Linnen sold 9,483 shares of the business's stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $182.32, for a total transaction of $1,728,940.56. Following the sale, the executive vice president owned 37,932 shares in the company, valued at approximately $6,915,762.24. This trade represents a 20.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 16,299 shares of company stock worth $3,836,012. Corporate insiders own 50.48% of the company's stock.

Analyst Ratings Changes

CAR has been the topic of several research reports. Morgan Stanley lifted their price target on shares of Avis Budget Group from $97.00 to $99.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 20th. JPMorgan Chase & Co. decreased their target price on shares of Avis Budget Group from $165.00 to $140.00 and set an "underweight" rating on the stock in a research note on Friday, May 1st. Jefferies Financial Group downgraded shares of Avis Budget Group from a "buy" rating to a "hold" rating and lifted their target price for the stock from $112.00 to $160.00 in a research note on Friday, May 1st. The Goldman Sachs Group set a $85.00 target price on shares of Avis Budget Group in a research note on Monday, February 23rd. Finally, Barclays decreased their target price on shares of Avis Budget Group from $150.00 to $140.00 and set an "underweight" rating on the stock in a research note on Tuesday, May 5th. Five investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $125.25.

Avis Budget Group Trading Up 0.9%

Shares of Avis Budget Group stock opened at $173.86 on Thursday. The company's fifty day simple moving average is $225.05 and its two-hundred day simple moving average is $156.70. The company has a market cap of $6.14 billion, a P/E ratio of -9.13 and a beta of 1.87. 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 data on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($6.82) by ($1.19). The business had revenue of $2.53 billion for the quarter, compared to analyst estimates of $2.43 billion. The company's revenue for the quarter was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($14.35) earnings per share. Analysts predict that Avis Budget Group, Inc. will post 2.93 EPS for the current fiscal year.

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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