UBS Group AG Raises Stock Position in Avis Budget Group, Inc. $CAR

Key Points

• UBS Group AG increased its stake in Avis Budget Group by 37.3% in Q4, purchasing 804,814 shares to own 2,964,807 shares (about 8.42%) valued at roughly $380.4 million.
• Institutional ownership is very high — hedge funds and other institutions own about 96.35% of the company, while major shareholder Pentwater bought 425,000 shares, raising its direct stake to 3,987,100 shares (an ~11.93% increase); a company director also disclosed a small insider sale.
• Wall Street sentiment is broadly negative, with a MarketBeat consensus of "Strong Sell" and an average target of $124, as the stock trades with a $6.61 billion market cap, a negative P/E (-7.37) and a wide one‑year range of $85.96–$847.70.

UBS Group AG increased its stake in Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) by 37.3% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,964,807 shares of the business services provider's stock after purchasing an additional 804,814 shares during the quarter. UBS Group AG owned 8.42% of Avis Budget Group worth $380,444,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. National Bank of Canada FI boosted its holdings in 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 purchasing an additional 409,761 shares during the last quarter. ING Groep NV boosted its holdings in 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 purchasing an additional 843,400 shares during the last quarter. State Street Corp boosted its holdings in Avis Budget Group by 1.0% in the second quarter. State Street Corp now owns 713,127 shares of the business services provider's stock worth $120,554,000 after purchasing an additional 7,318 shares during the last quarter. CIBC Bancorp USA Inc. purchased a new stake in Avis Budget Group in the third quarter worth approximately $97,951,000. Finally, Assenagon Asset Management S.A. boosted its holdings in Avis Budget Group by 40.3% in the fourth quarter. Assenagon Asset Management S.A. now owns 539,395 shares of the business services provider's stock worth $69,215,000 after purchasing an additional 154,994 shares during the last quarter. Hedge funds and other institutional investors own 96.35% of the company's stock.

Avis Budget Group Stock Performance

Shares of Avis Budget Group stock opened at $187.07 on Tuesday. Avis Budget Group, Inc. has a one year low of $85.96 and a one year high of $847.70. The stock's fifty day moving average is $193.75 and its 200 day moving average is $153.77. The stock has a market cap of $6.61 billion, a P/E ratio of -7.37 and a beta of 1.94.

Insiders Place Their Bets

In related news, Director Lynn Krominga sold 1,950 shares of the firm's stock in a transaction on Friday, February 20th. The stock was sold at an average price of $91.54, for a total value of $178,503.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Pentwater Capital Management L acquired 425,000 shares of the firm's stock in a transaction dated Friday, February 20th. The shares were purchased at an average price of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the transaction, the insider directly owned 3,987,100 shares in the company, valued at approximately $375,824,046. This trade represents a 11.93% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 50.48% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Wall Street Zen cut shares of Avis Budget Group from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Morgan Stanley dropped their target price on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating on the stock in a report on Friday, March 6th. The Goldman Sachs Group set a $85.00 price target on shares of Avis Budget Group in a research report on Monday, February 23rd. JPMorgan Chase & Co. cut shares of Avis Budget Group from a "neutral" rating to an "underweight" rating and lifted their price target for the stock from $123.00 to $165.00 in a research note on Thursday, April 23rd. Finally, Barclays downgraded shares of Avis Budget Group from an "equal weight" rating to an "underweight" rating and boosted their price objective for the company from $95.00 to $150.00 in a research report on Monday, April 20th. Three research analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Strong Sell" and an average target price of $124.00.

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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