Avis Budget Group, Inc. (NASDAQ:CAR) Receives Average Rating of “Reduce” from Analysts

Shares of Avis Budget Group, Inc. (NASDAQ:CAR) have been given a consensus recommendation of “Reduce” by the nine brokerages that are currently covering the firm, MarketBeat Ratings reports. Four research analysts have rated the stock with a sell recommendation and five have given a hold recommendation to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $115.00.

CAR has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Barclays decreased their price target on shares of Avis Budget Group from $120.00 to $95.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 26th. Deutsche Bank Aktiengesellschaft downgraded shares of Avis Budget Group from a “buy” rating to a “hold” rating and set a $128.00 price target on the stock. in a research note on Monday, April 6th. The Goldman Sachs Group set a $85.00 price target on shares of Avis Budget Group in a research note on Monday, February 23rd. Finally, Zacks Research downgraded shares of Avis Budget Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 19th.

Insiders Place Their Bets

In other Avis Budget Group news, major shareholder Pentwater Capital Management L purchased 425,000 shares of the firm’s stock in a transaction that occurred on Friday, February 20th. The shares were bought at an average price of $94.26 per share, with a total value of $40,060,500.00. Following the completion of the purchase, the insider directly owned 3,987,100 shares in the company, valued at $375,824,046. This trade represents a 11.93% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Lynn Krominga sold 1,950 shares of the company’s stock in a transaction on Friday, February 20th. The shares were sold at an average price of $91.54, for a total transaction of $178,503.00. The SEC filing for this sale provides additional information. 50.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Avis Budget Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd raised its stake in shares of Avis Budget Group by 1,845.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider’s stock valued at $27,000 after acquiring an additional 203 shares during the period. Quarry LP purchased a new stake in shares of Avis Budget Group in the fourth quarter valued at $27,000. Deseret Mutual Benefit Administrators raised its stake in shares of Avis Budget Group by 102.3% in the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider’s stock valued at $28,000 after acquiring an additional 88 shares during the period. Basepoint Wealth LLC purchased a new stake in shares of Avis Budget Group in the fourth quarter valued at $32,000. Finally, Hantz Financial Services Inc. raised its stake in shares of Avis Budget Group by 136.4% in the third quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider’s stock valued at $41,000 after acquiring an additional 146 shares during the period. Hedge funds and other institutional investors own 96.35% of the company’s stock.

Avis Budget Group Stock Up 13.4%

Avis Budget Group stock opened at $448.98 on Friday. The company has a market cap of $15.86 billion, a price-to-earnings ratio of -17.68 and a beta of 1.94. The firm’s fifty day moving average is $152.64 and its 200 day moving average is $141.25. Avis Budget Group has a 52-week low of $73.45 and a 52-week high of $452.00.

Avis Budget Group News Roundup

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Retail-driven short-squeeze / momentum rally has pushed CAR far higher over the past month, attracting attention and driving large percentage gains. Article Title
• Positive Sentiment: Unusually high options volume and call buying are amplifying upside pressure and intraday moves, a hallmark of speculative squeezes that can accelerate rallies. Article Title
• Neutral Sentiment: Multiple LULD (limit up / limit down) trading pauses occurred during the last two sessions, signaling extreme volatility and regulatory breaks rather than company-specific news.
• Negative Sentiment: Bloomberg reports that the stock’s ~200% run is luring new short sellers who believe a reversion “back to reality” is possible, increasing the risk of pullbacks. Article Title
• Negative Sentiment: Valuation concerns: analysts and commentators note a sharp disconnect between the share price move and fundamentals, urging caution on stretched multiples. Article Title
• Negative Sentiment: Signs the short squeeze may be stalling: some sessions have seen sharp pullbacks (and related weakness at peers like Hertz), suggesting momentum can reverse quickly. Article Title

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.