Zacks Research Has Positive Outlook for CAR Q3 Earnings

Key Points

• Zacks Research raised its Q3 2026 EPS estimate for Avis Budget Group to $9.10 from $7.22, while maintaining a Hold rating on the stock.
• The company recently missed earnings estimates for Q1 2026, reporting a loss of $8.01 per share versus expectations for a $6.82 loss, even though revenue of $2.53 billion topped forecasts.
• Wall Street sentiment remains cautious, with analysts split between Hold and Sell ratings and an average price target of $125.25, below the stock’s recent opening price of $167.05.

Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) - Stock analysts at Zacks Research boosted their Q3 2026 EPS estimates for shares of Avis Budget Group in a research note issued on Wednesday, May 20th. Zacks Research analyst Team now forecasts that the business services provider will post earnings per share of $9.10 for the quarter, up from their prior estimate of $7.22. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Avis Budget Group's current full-year earnings is $2.93 per share. Zacks Research also issued estimates for Avis Budget Group's Q4 2026 earnings at ($1.17) EPS, FY2026 earnings at $2.33 EPS, Q1 2027 earnings at ($2.59) EPS, Q3 2027 earnings at $5.85 EPS, Q4 2027 earnings at ($0.45) EPS, FY2027 earnings at $4.66 EPS and Q1 2028 earnings at $0.93 EPS.

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 company had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $2.43 billion. The company's quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($14.35) earnings per share.

A number of other research analysts have also weighed in on CAR. The Goldman Sachs Group set a $85.00 target price on shares of Avis Budget Group in a research note on Monday, February 23rd. Morgan Stanley raised their target price on shares of Avis Budget Group from $97.00 to $99.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 20th. Wall Street Zen raised shares of Avis Budget Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. JPMorgan Chase & Co. decreased their target price on shares of Avis Budget Group from $165.00 to $140.00 and set an "underweight" rating on the stock in a research note on Friday, May 1st. Finally, Barclays decreased their target price on shares of Avis Budget Group from $150.00 to $140.00 and set an "underweight" rating on the stock in a research note on Tuesday, May 5th. Five equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $125.25.

Avis Budget Group Stock Performance

Shares of Avis Budget Group stock opened at $167.05 on Monday. The firm has a market capitalization of $5.90 billion, a PE ratio of -8.77 and a beta of 1.91. Avis Budget Group has a twelve month low of $85.96 and a twelve month high of $847.70. The firm's 50-day moving average price is $213.94 and its 200 day moving average price is $155.02.

Insider Activity

In other news, major shareholder Pentwater Capital Management L sold 3,347 shares of Avis Budget Group stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $438.74, for a total transaction of $1,468,462.78. Following the sale, the insider owned 6,177,100 shares of the company's stock, valued at approximately $2,710,140,854. The trade was a 0.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Ravi Simhambhatla sold 3,469 shares of Avis Budget Group stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $184.09, for a total transaction of $638,608.21. Following the sale, the executive vice president directly owned 13,876 shares in the company, valued at approximately $2,554,432.84. The trade was a 20.00% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 16,299 shares of company stock valued at $3,836,012. 50.48% of the stock is currently owned by company insiders.

Institutional Trading of Avis Budget Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. UBS Group AG raised its position in Avis Budget Group by 37.3% in the fourth quarter. UBS Group AG now owns 2,964,807 shares of the business services provider's stock valued at $380,444,000 after purchasing an additional 804,814 shares during the period. Morgan Stanley raised its position in Avis Budget Group by 38.1% in the fourth quarter. Morgan Stanley now owns 1,975,675 shares of the business services provider's stock valued at $253,519,000 after purchasing an additional 545,574 shares during the period. National Bank of Canada FI raised its position in Avis Budget Group by 46.6% in the third quarter. National Bank of Canada FI now owns 1,290,000 shares of the business services provider's stock valued at $207,142,000 after purchasing an additional 409,761 shares during the period. ING Groep NV raised its position in Avis Budget Group by 440.2% in the third quarter. ING Groep NV now owns 1,035,000 shares of the business services provider's stock valued at $166,195,000 after purchasing an additional 843,400 shares during the period. Finally, State Street Corp raised its position in Avis Budget Group by 1.0% in the second quarter. State Street Corp now owns 713,127 shares of the business services provider's stock valued at $120,554,000 after purchasing an additional 7,318 shares during the period. Hedge funds and other institutional investors own 96.35% of the company's stock.

Avis Budget Group Company Profile

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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