Norges Bank Buys New Holdings in Avis Budget Group, Inc. $CAR

Key Points

• Norges Bank initiated a new position in Avis Budget Group during the fourth quarter, buying 357,701 shares worth about $45.9 million. The stake represented roughly 1.02% of the company.
• Avis Budget Group reported Q1 earnings of ($8.01) per share, missing analyst estimates, though revenue of $2.53 billion came in above expectations and rose 4.1% year over year.
• Sentiment remains cautious: analysts’ average rating is “Reduce” with an average price target of $127.75, while insiders recently sold shares and institutional investors continue to dominate ownership.

Norges Bank bought a new stake in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor bought 357,701 shares of the business services provider's stock, valued at approximately $45,900,000. Norges Bank owned about 1.02% of Avis Budget Group as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of CAR. Basepoint Wealth LLC purchased a new stake in Avis Budget Group in the fourth quarter valued at approximately $32,000. Hantz Financial Services Inc. boosted its holdings in Avis Budget Group by 136.4% in the third quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider's stock valued at $41,000 after purchasing an additional 146 shares during the last quarter. American Wealth Advisors LLC purchased a new stake in Avis Budget Group in the third quarter valued at $41,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Avis Budget Group by 26.5% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider's stock valued at $58,000 after purchasing an additional 76 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Avis Budget Group by 19.6% in the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock valued at $72,000 after purchasing an additional 70 shares during the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

Avis Budget Group Price Performance

Shares of NASDAQ:CAR opened at $179.10 on Tuesday. Avis Budget Group, Inc. has a 1 year low of $85.96 and a 1 year high of $847.70. The firm has a market capitalization of $6.33 billion, a price-to-earnings ratio of -9.40 and a beta of 1.87. The business's 50 day moving average price is $228.10 and its 200-day moving average price is $157.65.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last announced its earnings results 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 firm had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.43 billion. During the same quarter last year, the business earned ($14.35) EPS. Avis Budget Group's quarterly revenue was up 4.1% on a year-over-year basis. On average, 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

Several equities research analysts have commented on CAR shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a report on Wednesday, May 20th. Zacks Research upgraded Avis Budget Group from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. JPMorgan Chase & Co. lowered their price objective on Avis Budget Group from $165.00 to $140.00 and set an "underweight" rating on the stock in a research report on Friday, May 1st. Morgan Stanley upped their price objective on Avis Budget Group from $97.00 to $99.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 20th. Finally, 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. Six research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $127.75.

Insider Activity

In related news, EVP Ravi Simhambhatla sold 3,469 shares of the firm's stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $184.09, for a total value of $638,608.21. Following the transaction, the executive vice president directly owned 13,876 shares of the company's stock, valued at approximately $2,554,432.84. This trade represents a 20.00% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Edward P. Linnen sold 9,483 shares of the firm's 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 16,299 shares of company stock worth $3,836,012 in the last quarter. Corporate 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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