Hsbc Holdings PLC Cuts Position in Avis Budget Group, Inc. $CAR

Key Points

• Hsbc Holdings PLC sold 31,769 shares of Avis Budget Group, reducing its stake by 90.9% to 3,181 shares, valued at $241,000.
• Avis Budget Group reported $0.10 earnings per share for the last quarter, significantly missing analysts' expectations of $2.02.
• Institutional investors hold 96.35% of Avis Budget Group's stock, with significant transactions recently from firms like Vanguard and Nomura Holdings.

Hsbc Holdings PLC trimmed its position in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) by 90.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 3,181 shares of the business services provider's stock after selling 31,769 shares during the period. Hsbc Holdings PLC's holdings in Avis Budget Group were worth $241,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Crossmark Global Holdings Inc. purchased a new stake in Avis Budget Group during the 1st quarter worth approximately $274,000. Captrust Financial Advisors purchased a new stake in Avis Budget Group during the 4th quarter worth approximately $460,000. Northern Trust Corp increased its stake in Avis Budget Group by 21.0% during the 4th 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. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in Avis Budget Group by 9.8% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,840 shares of the business services provider's stock worth $443,000 after buying an additional 519 shares in the last quarter. Finally, Victory Capital Management Inc. increased its stake in Avis Budget Group by 166.0% during the 1st quarter. Victory Capital Management Inc. now owns 29,527 shares of the business services provider's stock worth $2,241,000 after buying an additional 18,425 shares in the last quarter. 96.35% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Bernardo Hees sold 402,200 shares of the company's stock in a transaction that occurred 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 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 legal filing with the SEC, which is accessible through this link. Also, EVP Edward P. Linnen sold 10,000 shares of the company's stock in a transaction that occurred on 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 completion of the transaction, the executive vice president owned 40,915 shares in the company, 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 Analysts Forecast Growth

Several research firms have commented on CAR. Bank of America reiterated an "underperform" rating and set a $113.00 price objective (down from $120.00) on shares of Avis Budget Group in a research note on Wednesday, August 20th. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $155.00 price objective on shares of Avis Budget Group in a research note on Thursday, July 31st. Barclays boosted their target price on Avis Budget Group from $105.00 to $150.00 and gave the stock an "equal weight" rating in a report on Monday, August 4th. Zacks Research upgraded Avis Budget Group from a "strong sell" rating to a "hold" rating in a report on Thursday, August 21st. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $196.00 target price (up from $130.00) on shares of Avis Budget Group in a report on Thursday, July 10th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Avis Budget Group has an average rating of "Reduce" and an average target price of $143.80.

Avis Budget Group Stock Down 1.3%

Shares of Avis Budget Group stock traded down $2.13 on Wednesday, hitting $155.78. 513,310 shares of the company were exchanged, compared to its average volume of 838,578. The stock has a market capitalization of $5.48 billion, a price-to-earnings ratio of -2.46 and a beta of 2.11. The company has a 50-day moving average price of $171.26 and a 200 day moving average price of $123.22. 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 released its quarterly earnings data 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). Avis Budget Group had a negative net margin of 19.06% and a negative return on equity of 14.74%. The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.02 billion. During the same quarter in the prior year, the company posted $0.41 earnings per share. The company's revenue was down .3% on a year-over-year basis. Research analysts forecast that Avis Budget Group, Inc. will post 8.91 EPS for the current year.

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.