Avis Budget Group (NASDAQ:CAR) Shares Up 4.4% - What's Next?

Key Points

• Avis Budget Group shares rose 4.4% to about $109.50 in mid-day trading, though trading volume was 92% below the stock’s average daily volume.
• Analyst sentiment remains cautious: six analysts rate the stock Hold and three rate it Sell, resulting in an average “Reduce” rating and a consensus price target of $135.
• The company’s latest quarterly results missed expectations, with earnings per share of $0.98 versus the $2.05 consensus estimate and revenue of $3.0 billion, down 1.3% year over year.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report)'s stock price traded up 4.4% during mid-day trading on Tuesday. The company traded as high as $109.47 and last traded at $109.5010. Approximately 101,300 shares changed hands during trading, a decline of 92% from the average daily volume of 1,320,730 shares. The stock had previously closed at $104.93.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a research note on Monday, August 17th. Barclays set a $160.00 target price on Avis Budget Group and gave the company an "equal weight" rating in a research note on Monday, June 8th. The Goldman Sachs Group upped their target price on Avis Budget Group from $85.00 to $95.00 and gave the stock a "sell" rating in a research report on Friday, July 24th. Morgan Stanley cut their price target on 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. Finally, JPMorgan Chase & Co. boosted their price target on Avis Budget Group from $155.00 to $170.00 and gave the company an "underweight" rating in a research note on Tuesday, June 23rd. Six investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $135.00.

Avis Budget Group Price Performance

The stock has a market capitalization of $3.81 billion, a P/E ratio of -5.95 and a beta of 1.91. The stock's fifty day moving average is $136.58 and its 200-day moving average is $173.24.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The business services provider reported $0.98 earnings per share for the quarter, missing analysts' consensus estimates of $2.05 by ($1.07). The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $3.10 billion. Avis Budget Group's revenue was down 1.3% on a year-over-year basis. During the same period in the prior year, the company earned $0.10 earnings per share. On average, research analysts expect that Avis Budget Group, Inc. will post 1.08 EPS for the current year.

Institutional Trading of Avis Budget Group

Institutional investors and hedge funds have recently modified their holdings of the company. Engineers Gate Manager LP lifted its position in Avis Budget Group by 129.0% during the 2nd quarter. Engineers Gate Manager LP now owns 16,821 shares of the business services provider's stock worth $2,487,000 after acquiring an additional 9,474 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of Avis Budget Group during the 2nd quarter worth about $448,000. Nykredit A S bought a new stake in Avis Budget Group during the 2nd quarter valued at approximately $80,000. Corient Private Wealth LP boosted its stake in Avis Budget Group by 217.2% during the 2nd quarter. Corient Private Wealth LP now owns 5,120 shares of the business services provider's stock valued at $757,000 after purchasing an additional 3,506 shares during the period. Finally, Amundi grew its holdings in Avis Budget Group by 218.6% in the 2nd quarter. Amundi now owns 247,987 shares of the business services provider's stock valued at $36,660,000 after buying an additional 170,162 shares during the last quarter. 96.35% of the stock is currently owned by institutional investors and hedge funds.

About Avis Budget Group

Avis Budget Group, Inc is a global provider of vehicle rental and mobility services. The company operates through a portfolio of well-known brands, including Avis, Budget and Payless, offering car and truck rentals to business and leisure travelers, government customers and other organizations.

The company also provides flexible vehicle access through Zipcar, a car-sharing service that allows members to reserve vehicles for short-term use. Its services are delivered through company-operated locations, licensed operations and franchise partners, with offerings that may include airport and neighborhood rentals, fleet management and related mobility solutions.

Avis Budget Group serves customers across North America, Europe, Australia and New Zealand, Latin America, the Caribbean, Africa and parts of Asia through its operating businesses and partners.

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