Susquehanna Forecasts Strong Price Appreciation for Avis Budget Group (NASDAQ:CAR) Stock

Key Points

• Susquehanna raised its price target on Avis Budget Group from $105 to $140 while maintaining a neutral rating, a target that implies roughly a 9.1% downside from the stock's prior close.
• Analyst sentiment is negative overall with a MarketBeat consensus of "Reduce" and an average target of $125; analyst views are mixed (five Hold, five Sell) and price targets range widely (about $97–$160).
• Fundamentals show a Q quarter EPS miss (reported -$8.01 vs. estimate -$6.82) but a revenue beat ($2.53B); the stock trades near $154, has a market cap of $5.44B, notable insider selling, and institutional ownership of about 96%.

Avis Budget Group (NASDAQ:CAR - Get Free Report) had its target price increased by equities research analysts at Susquehanna from $105.00 to $140.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the business services provider's stock. Susquehanna's target price points to a potential downside of 9.13% from the stock's previous close.

CAR has been the topic of a number of other reports. Jefferies Financial Group downgraded shares of Avis Budget Group from a "buy" rating to a "hold" rating and boosted their price objective for the company from $112.00 to $160.00 in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $125.00 price target on shares of Avis Budget Group in a report on Friday, May 1st. Morgan Stanley dropped their price target on shares of Avis Budget Group from $142.00 to $97.00 and set an "equal weight" rating on the stock in a research note on Friday, March 6th. JPMorgan Chase & Co. cut their price objective on Avis Budget Group from $165.00 to $140.00 and set an "underweight" rating for the company in a report on Friday, May 1st. Finally, Barclays reduced their price objective on Avis Budget Group from $150.00 to $140.00 and set an "underweight" rating for the company in a research report on Tuesday. Five analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $125.00.

Avis Budget Group Stock Performance

Avis Budget Group stock opened at $154.06 on Friday. Avis Budget Group has a 52 week low of $85.96 and a 52 week high of $847.70. The firm has a market capitalization of $5.44 billion, a price-to-earnings ratio of -8.09 and a beta of 1.91. The company has a 50 day moving average price of $201.79 and a 200 day moving average price of $154.59.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share for the quarter, missing analysts' consensus estimates of ($6.82) by ($1.19). The firm had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.43 billion. The company's quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter last year, the company earned ($14.35) EPS. Equities analysts forecast that Avis Budget Group will post 3.72 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Lynn Krominga sold 1,950 shares of the stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $91.54, for a total transaction of $178,503.00. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, major shareholder Pentwater Capital Management L sold 3,347 shares of the company's stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $438.74, for a total value of $1,468,462.78. Following the sale, the insider directly owned 6,177,100 shares of the company's stock, valued at $2,710,140,854. The trade was a 0.05% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 18,249 shares of company stock worth $4,014,515. Insiders own 50.48% of the company's stock.

Institutional Investors Weigh In On Avis Budget Group

Several hedge funds and other institutional investors have recently made changes to their positions in the business. UBS Group AG lifted its position in shares of Avis Budget Group by 37.3% during the 4th quarter. UBS Group AG now owns 2,964,807 shares of the business services provider's stock worth $380,444,000 after purchasing an additional 804,814 shares during the last quarter. Morgan Stanley grew its holdings in Avis Budget Group by 38.1% in the 4th quarter. Morgan Stanley now owns 1,975,675 shares of the business services provider's stock valued at $253,519,000 after buying an additional 545,574 shares during the last quarter. National Bank of Canada FI increased its position in Avis Budget Group by 46.6% in the 3rd quarter. National Bank of Canada FI now owns 1,290,000 shares of the business services provider's stock worth $207,142,000 after buying an additional 409,761 shares during the period. ING Groep NV lifted its holdings in shares of Avis Budget Group by 440.2% during the third quarter. ING Groep NV now owns 1,035,000 shares of the business services provider's stock worth $166,195,000 after buying an additional 843,400 shares during the last quarter. Finally, State Street Corp lifted its holdings in shares of Avis Budget Group by 1.0% during the second quarter. State Street Corp now owns 713,127 shares of the business services provider's stock worth $120,554,000 after buying an additional 7,318 shares during the last quarter. 96.35% of the stock is owned by institutional investors and hedge funds.

About Avis Budget Group

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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