Avis Budget Group (NASDAQ:CAR) Trading Down 5.6% - Here's What Happened

Key Points

• Avis Budget Group shares fell 5.6% to about $110.69, with trading volume roughly 91% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock carries a consensus “Reduce” rating, with six Hold ratings and three Sell ratings, despite a consensus price target of $135.
• The company’s latest quarterly results missed expectations, reporting $0.98 in EPS versus the $2.05 estimate and revenue of $3.0 billion versus the $3.1 billion forecast; revenue declined 1.3% year over year.

Avis Budget Group, Inc. (NASDAQ:CAR - Get Free Report)'s stock price fell 5.6% during trading on Tuesday . The company traded as low as $111.02 and last traded at $110.6850. 116,857 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 1,345,437 shares. The stock had previously closed at $117.26.

Analyst Ratings Changes

CAR has been the topic of a number of research reports. Zacks Research raised Avis Budget Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 1st. Morgan Stanley reduced their price objective 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. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a research report on Monday, August 17th. The Goldman Sachs Group lifted their target price on Avis Budget Group from $85.00 to $95.00 and gave the company a "sell" rating in a research note on Friday, July 24th. Finally, JPMorgan Chase & Co. boosted their target price on Avis Budget Group from $155.00 to $170.00 and gave the company an "underweight" rating in a report on Tuesday, June 23rd. Six equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $135.00.

Avis Budget Group Trading Down 5.4%

The firm has a market cap of $3.92 billion, a price-to-earnings ratio of -6.10 and a beta of 1.91. The firm has a 50 day moving average price of $141.91 and a 200-day moving average price of $172.90.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its quarterly earnings data 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 firm had revenue of $3 billion for the quarter, compared to analyst estimates of $3.10 billion. Avis Budget Group's quarterly revenue was down 1.3% on a year-over-year basis. During the same period last year, the business posted $0.10 earnings per share. As a group, equities analysts expect that Avis Budget Group, Inc. will post 1.08 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in CAR. Parallel Advisors LLC grew its position in Avis Budget Group by 11.6% during the first quarter. Parallel Advisors LLC now owns 587 shares of the business services provider's stock worth $86,000 after buying an additional 61 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its position in shares of Avis Budget Group by 3.0% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 3,474 shares of the business services provider's stock valued at $507,000 after acquiring an additional 100 shares during the last quarter. State of Michigan Retirement System grew its holdings in shares of Avis Budget Group by 2.5% during the first quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider's stock worth $594,000 after purchasing an additional 100 shares in the last quarter. AXQ Capital LP grew its holdings in shares of Avis Budget Group by 5.3% during the fourth quarter. AXQ Capital LP now owns 2,900 shares of the business services provider's stock worth $372,000 after purchasing an additional 145 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. increased its position in shares of Avis Budget Group by 2.0% in the fourth quarter. Envestnet Portfolio Solutions Inc. now owns 7,595 shares of the business services provider's stock worth $975,000 after purchasing an additional 150 shares during the last quarter. 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 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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