Jefferies Financial Group Inc. Purchases New Holdings in Avis Budget Group, Inc. $CAR

Key Points

• Jefferies Financial Group opened a new position in Avis Budget Group during the fourth quarter, buying 17,000 shares valued at about $2.18 million.
• Avis Budget Group recently reported quarterly EPS of ($8.01), missing analyst expectations, though revenue of $2.53 billion came in above estimates and rose 4.1% year over year.
• Wall Street remains cautious on CAR, with a consensus rating of “Reduce” and an average price target of $125.25; insiders also sold shares in recent months, including EVP Edward P. Linnen and major shareholder Pentwater Capital Management.

Jefferies Financial Group Inc. purchased a new stake in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 17,000 shares of the business services provider's stock, valued at approximately $2,181,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. EverSource Wealth Advisors LLC boosted its stake in Avis Budget Group by 19.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock worth $72,000 after purchasing an additional 70 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in Avis Budget Group by 26.5% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider's stock worth $58,000 after purchasing an additional 76 shares during the period. PNC Financial Services Group Inc. boosted its stake in Avis Budget Group by 7.8% in the 3rd quarter. PNC Financial Services Group Inc. now owns 1,460 shares of the business services provider's stock worth $234,000 after purchasing an additional 106 shares during the period. Wedmont Private Capital boosted its stake in Avis Budget Group by 7.8% in the 4th quarter. Wedmont Private Capital now owns 1,750 shares of the business services provider's stock worth $222,000 after purchasing an additional 126 shares during the period. Finally, Treasurer of the State of North Carolina boosted its stake in Avis Budget Group by 1.7% in the 2nd quarter. Treasurer of the State of North Carolina now owns 7,890 shares of the business services provider's stock worth $1,334,000 after purchasing an additional 131 shares during the period. Institutional investors and hedge funds own 96.35% of the company's stock.

Avis Budget Group Price Performance

Avis Budget Group stock opened at $166.52 on Wednesday. The firm has a 50-day moving average of $216.61 and a 200-day moving average of $155.41. Avis Budget Group, Inc. has a one year low of $85.96 and a one year high of $847.70. The company has a market cap of $5.88 billion, a price-to-earnings ratio of -8.74 and a beta of 1.91.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The business services provider reported ($8.01) EPS for the quarter, missing analysts' consensus estimates of ($6.82) by ($1.19). The firm had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.43 billion. During the same period last year, the company posted ($14.35) EPS. Avis Budget Group's revenue was up 4.1% on a year-over-year basis. As a group, sell-side analysts expect that Avis Budget Group, Inc. will post 2.93 earnings per share for the current year.

Analysts Set New Price Targets

CAR has been the subject of a number of research analyst reports. Morgan Stanley upped their target price 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. Zacks Research raised shares of Avis Budget Group from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 6th. The Goldman Sachs Group set a $85.00 target price on shares of Avis Budget Group in a research note on Monday, February 23rd. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $125.00 target price on shares of Avis Budget Group in a research note on Friday, May 1st. Finally, Susquehanna increased their price objective on shares of Avis Budget Group from $105.00 to $140.00 and gave the stock a "neutral" rating in a research note on Friday, May 8th. Five equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, Avis Budget Group presently has a consensus rating of "Reduce" and an average price target of $125.25.

Insider Transactions at Avis Budget Group

In other news, EVP Edward P. Linnen sold 9,483 shares of the stock in a transaction dated 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 completion of the transaction, the executive vice president directly owned 37,932 shares in the company, valued at $6,915,762.24. This represents a 20.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, major shareholder Pentwater Capital Management L sold 3,347 shares of the stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $438.74, for a total transaction of $1,468,462.78. Following the transaction, the insider owned 6,177,100 shares of the company's stock, valued at approximately $2,710,140,854. This represents a 0.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 16,299 shares of company stock worth $3,836,012 in the last three months. Insiders own 50.48% of the company's stock.

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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