Northwestern Mutual Wealth Management Co. Buys 170,636 Shares of Avis Budget Group, Inc. $CAR

Key Points

• Northwestern Mutual Wealth Management sharply increased its stake in Avis Budget Group, buying 170,636 additional shares in the fourth quarter and ending with about 171,000 shares worth roughly $21.9 million.
• Institutional ownership remains very high, with several other large investors also boosting positions; the article says institutions own about 96.35% of the stock.
• Analysts remain cautious on Avis Budget Group, with an average rating of “Reduce” and a consensus price target of $125, even as the stock recently rose 3.3% and the company reported mixed quarterly results.

Northwestern Mutual Wealth Management Co. lifted its stake in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) by 47,007.2% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 170,999 shares of the business services provider's stock after acquiring an additional 170,636 shares during the period. Northwestern Mutual Wealth Management Co. owned approximately 0.49% of Avis Budget Group worth $21,943,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the stock. ING Groep NV raised its position in shares of Avis Budget Group by 440.2% in the third quarter. ING Groep NV now owns 1,035,000 shares of the business services provider's stock worth $166,195,000 after buying an additional 843,400 shares in the last quarter. UBS Group AG raised its position in shares of Avis Budget Group by 37.3% in the fourth quarter. UBS Group AG now owns 2,964,807 shares of the business services provider's stock worth $380,444,000 after buying an additional 804,814 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in shares of Avis Budget Group in the third quarter worth $97,951,000. National Bank of Canada FI raised its position in shares of Avis Budget Group by 46.6% in the third quarter. National Bank of Canada FI now owns 1,290,000 shares of the business services provider's stock worth $207,142,000 after buying an additional 409,761 shares in the last quarter. Finally, Cibc World Market Inc. purchased a new stake in shares of Avis Budget Group in the third quarter worth $64,231,000. 96.35% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, EVP Ravi Simhambhatla sold 3,469 shares of the firm's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $184.09, for a total transaction 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Lynn Krominga sold 1,950 shares of the firm's stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $91.54, for a total value of $178,503.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 18,249 shares of company stock valued at $4,014,515 over the last three months. 50.48% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Barclays lowered their price objective on Avis Budget Group from $150.00 to $140.00 and set an "underweight" rating on the stock in a research report on Tuesday, May 5th. Jefferies Financial Group downgraded Avis Budget Group from a "buy" rating to a "hold" rating and increased their price objective for the stock from $112.00 to $160.00 in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $125.00 price target on shares of Avis Budget Group in a research report on Friday, May 1st. The Goldman Sachs Group set a $85.00 price target on Avis Budget Group in a research report on Monday, February 23rd. Finally, Zacks Research upgraded Avis Budget Group from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. Five analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat, Avis Budget Group presently has an average rating of "Reduce" and an average price target of $125.00.

Avis Budget Group Stock Up 3.3%

NASDAQ CAR opened at $151.08 on Wednesday. The stock's 50-day simple moving average is $210.25 and its two-hundred day simple moving average is $154.51. Avis Budget Group, Inc. has a twelve month low of $85.96 and a twelve month high of $847.70. The company has a market capitalization of $5.34 billion, a price-to-earnings ratio of -7.93 and a beta of 1.91.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share for the quarter, missing analysts' consensus estimates of ($6.82) by ($1.19). The business had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same quarter last year, the firm earned ($14.35) EPS. The firm's quarterly revenue was up 4.1% on a year-over-year basis. On average, equities analysts expect that Avis Budget Group, Inc. will post 3.46 earnings per share 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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