Avis Budget Group (NASDAQ:CAR) Share Price Breaks Above 50 Day Moving Average on Disappointing Earnings

Key Points

• Avis Budget’s quarterly EPS of $5.15 missed analysts’ $8.01 estimate and fell from $10.11 a year earlier. Revenue was $3.44 billion, slightly above estimates but down 2.4% year over year.
• The company projected about $850 million in adjusted EBITDA for 2026 and expects revenue-management initiatives to deliver tangible benefits by summer 2027. Higher utilization helped offset slower travel demand.
• Shares traded above their 50-day moving average, reaching $126.88 before last trading at $119.81. Analysts’ average rating was “Reduce,” with a consensus price target of $117.14.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report)'s share price crossed above its fifty day moving average during trading on Wednesday following a better than expected earnings announcement. The stock has a fifty day moving average of $115.06 and traded as high as $126.88. Avis Budget Group shares last traded at $119.81, with a volume of 878,874 shares trading hands.

The business services provider reported $5.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.01 by ($2.86). The firm had revenue of $3.44 billion for the quarter, compared to analyst estimates of $3.42 billion. The firm's quarterly revenue was down 2.4% on a year-over-year basis. During the same period in the previous year, the company earned $10.11 EPS.

Key Stories Impacting Avis Budget Group

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Avis projected approximately $850 million in full-year 2026 adjusted EBITDA and said it is targeting tangible benefits from revenue-management initiatives by summer 2027. Avis Budget 2026 outlook
• Positive Sentiment: Utilization gains helped offset a slowdown in travel demand, while quarterly revenue of $3.44 billion came in slightly above analyst expectations. Q3 deep dive
• Negative Sentiment: Third-quarter EPS was $5.15, well below the cited consensus estimate of $8.01 and down from $10.11 a year earlier. Revenue fell 2.4% year over year, and reports pointed to higher costs and mobility competition as pressures on profits. Competition and fleet costs weigh on profits

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CAR. Susquehanna restated a "neutral" rating and issued a $125.00 price objective on shares of Avis Budget Group in a research report on Wednesday. Barclays dropped their price objective on Avis Budget Group from $160.00 to $115.00 and set an "equal weight" rating for the company in a research report on Monday. Morgan Stanley cut their target price on shares of Avis Budget Group from $99.00 to $95.00 and set an "equal weight" rating for the company in a research note on Friday, September 11th. Weiss Ratings restated a "sell (d-)" rating on shares of Avis Budget Group in a report on Monday, August 17th. Finally, The Goldman Sachs Group raised their price target on shares of Avis Budget Group from $85.00 to $95.00 and gave the stock a "sell" rating in a research note on Friday, July 24th. Five investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $117.14.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Pentwater Capital Management LP bought a new stake in shares of Avis Budget Group in the 2nd quarter valued at approximately $371,541,000. Hsbc Holdings PLC bought a new position in Avis Budget Group during the second quarter worth $247,773,000. BlackRock Inc. bought a new position in Avis Budget Group during the second quarter worth $245,413,000. Cibc World Market Inc. bought a new position in Avis Budget Group during the second quarter worth $73,915,000. Finally, Mizuho Markets Americas LLC boosted its holdings in Avis Budget Group by 7.4% in the first quarter. Mizuho Markets Americas LLC now owns 400,000 shares of the business services provider's stock worth $58,340,000 after purchasing an additional 27,500 shares during the period. Institutional investors and hedge funds own 96.35% of the company's stock.

Avis Budget Group Price Performance

The stock has a market cap of $4.23 billion, a price-to-earnings ratio of -5.18 and a beta of 1.95. The business's fifty day simple moving average is $115.06 and its 200 day simple moving average is $152.96.

About Avis Budget Group

Avis Budget Group, Inc is a provider of mobility and vehicle-rental services. Through its Avis and Budget brands, the company offers car and truck rentals to business and leisure customers, serving travelers through airport and neighborhood locations as well as digital booking channels.

The company also operates Zipcar, a car-sharing service that provides members with access to vehicles for short-term use. Its brand portfolio has also included Payless, which serves value-oriented rental customers.

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