Avis Budget Group (NASDAQ:CAR) Shares Gap Up - Here's What Happened

Key Points

• Avis Budget Group shares jumped at the open, rising from a prior close of $118.83 to $126.22 and last trading at about $125.43.
• Analyst sentiment remained cautious: the consensus rating was “Reduce,” with an average price target of $116.14; five analysts rated the stock Hold and four rated it Sell.
• The company reported quarterly EPS of $5.15, below the $8.01 consensus estimate, while revenue of $3.44 billion slightly beat estimates but fell 2.4% year over year.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report) gapped up before the market opened on Tuesday. The stock had previously closed at $118.83, but opened at $126.22. Avis Budget Group shares last traded at $125.4290, with a volume of 11,123 shares.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on CAR. The Goldman Sachs Group boosted their price objective on shares of Avis Budget Group from $94.00 to $108.00 and gave the company a "sell" rating in a report on Thursday, November 5th. Zacks Research lowered shares of Avis Budget Group from a "hold" rating to a "strong sell" rating in a research note on Monday, October 19th. Susquehanna dropped their price target on shares of Avis Budget Group from $140.00 to $125.00 and set a "neutral" rating for the company in a research report on Wednesday, November 4th. Wall Street Zen cut shares of Avis Budget Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Avis Budget Group in a research note on Monday, August 17th. Five equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $116.14.

Avis Budget Group Price Performance

The business has a 50 day simple moving average of $113.96 and a 200 day simple moving average of $152.93. The company has a market capitalization of $4.43 billion, a price-to-earnings ratio of -5.40 and a beta of 1.95.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The business services provider reported $5.15 EPS for the quarter, missing the consensus estimate of $8.01 by ($2.86). The firm had revenue of $3.44 billion during the quarter, compared to analyst estimates of $3.42 billion. The firm's revenue for the quarter was down 2.4% on a year-over-year basis. During the same period in the prior year, the company posted $10.11 EPS. On average, equities research analysts predict that Avis Budget Group, Inc. will post 1.08 EPS for the current year.

Insider Activity

In other Avis Budget Group news, Director Glenn Lurie sold 6,101 shares of Avis Budget Group stock in a transaction dated Friday, November 6th. The stock was sold at an average price of $120.38, for a total value of $734,438.38. Following the completion of the transaction, the director directly owned 11,508 shares of the company's stock, valued at $1,385,333.04. The trade was a 34.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Lynn Krominga sold 28,404 shares of the business's stock in a transaction dated Friday, November 6th. The stock was sold at an average price of $120.25, for a total transaction of $3,415,581.00. Following the sale, the director owned 1,762 shares in the company, valued at $211,880.50. This trade represents a 94.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 50.48% of the company's stock.

Institutional Investors Weigh In On Avis Budget Group

Several large investors have recently added to or reduced their stakes in the business. Edgestream Partners L.P. purchased a new stake in shares of Avis Budget Group during the third quarter worth $887,000. Retirement Systems of Alabama raised its stake in shares of Avis Budget Group by 1.8% in the third quarter. Retirement Systems of Alabama now owns 17,854 shares of the business services provider's stock valued at $1,904,000 after acquiring an additional 318 shares in the last quarter. Fulcrum Asset Management LLP purchased a new position in Avis Budget Group in the third quarter valued at $347,000. Oregon Public Employees Retirement Fund boosted its holdings in Avis Budget Group by 2.9% in the third quarter. Oregon Public Employees Retirement Fund now owns 3,574 shares of the business services provider's stock valued at $381,000 after purchasing an additional 100 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al boosted its holdings in Avis Budget Group by 4.5% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 2,300 shares of the business services provider's stock valued at $245,000 after purchasing an additional 100 shares during the period. 96.35% of the stock is owned by hedge funds and other institutional investors.

About Avis Budget Group

Avis Budget Group, Inc is a global vehicle rental provider operating primarily through the Avis and Budget brands. Its services include short- and longer-term car rentals for leisure and business travelers, as well as vehicle rental solutions for businesses and other organizations.

The company also operates Zipcar, a car-sharing service that lets members reserve vehicles for short periods. In the United States, its offerings include Budget Truck rentals. Avis Budget Group serves customers through company-operated locations and licensees across North America and other regions worldwide.

The company was formed in 2006 after Cendant spun off its car rental business.

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