Avis Budget Group (NASDAQ:CAR) Shares Gap Down After Analyst Downgrade

Shares of Avis Budget Group, Inc. (NASDAQ:CAR) gapped down before the market opened on Thursday after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. The stock had previously closed at $443.94, but opened at $402.01. JPMorgan Chase & Co. now has a $165.00 price target on the stock, up from their previous price target of $123.00. Avis Budget Group shares last traded at $291.0020, with a volume of 2,642,220 shares trading hands.

Several other analysts have also issued reports on CAR. Wall Street Zen lowered Avis Budget Group from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. Zacks Research downgraded Avis Budget Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 19th. Deutsche Bank Aktiengesellschaft cut Avis Budget Group from a “buy” rating to a “hold” rating and set a $128.00 price objective on the stock. in a research report on Monday, April 6th. Weiss Ratings restated a “sell (d)” rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Finally, Barclays downgraded shares of Avis Budget Group from an “equal weight” rating to an “underweight” rating and lifted their price target for the company from $95.00 to $150.00 in a report on Monday. Three investment analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Avis Budget Group currently has an average rating of “Strong Sell” and a consensus target price of $124.00.

Insider Buying and Selling

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

Key Headlines Impacting Avis Budget Group

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

• Positive Sentiment: Shares have surged in a pronounced short‑squeeze and retail momentum rally, sending CAR to multi‑month/record highs as short covering and day‑trader interest push the stock sharply upward. Avis Budget shares touch record high as short squeeze hammers bearish bets
• Positive Sentiment: Multiple outlets report explosive daily and monthly gains (short‑squeeze driven), keeping momentum traders active and amplifying intraday moves. This continues to attract liquidity and speculative interest. Avis stock surges again, bringing monthly gains north of 600%
• Neutral Sentiment: A first‑quarter 2026 earnings release is scheduled for April 29 (7:00 a.m. ET); the print and any guidance will be a material catalyst for the stock following the rally. Avis Budget Group to Announce First Quarter 2026 Results on April 29, 2026
• Neutral Sentiment: Trading has been repeatedly halted (LULD pauses) across April 21–23 as the stock experiences extreme intraday swings — these pauses reduce continuous liquidity and can amplify pent‑up volatility when trading resumes.
• Neutral Sentiment: Options activity has spiked amid the rally, increasing leverage and amplification of price moves; heavy option flows can both accelerate rallies and deepen reversals. Avis Options Activity Surges Amid Gain in Stock; Puts Popular as Bearish Bets
• Negative Sentiment: JPMorgan downgraded CAR to underweight with a $165 price target (well below recent levels), signaling analyst concern about valuation and sustainability of the rally — this could weigh on institutional sentiment. JPMorgan downgrades Avis Budget
• Negative Sentiment: Coverage highlights technical damage and the risk of a hard landing after an extraordinary run (MarketWatch flagged the worst daily decline in decades for CAR), raising the probability of a sharp reversal. Avis’s stock has its worst day in 28 years
• Negative Sentiment: Analysts and press warn a parabolic move could prompt a secondary equity offering or regulatory scrutiny — both would be potential negative catalysts (dilution or investigations). Avis Short Squeeze: Why a Stock Offering and Regulatory Scrutiny Could Be Next

Hedge Funds Weigh In On Avis Budget Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada lifted its holdings in shares of Avis Budget Group by 414.0% in the 1st quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider’s stock valued at $1,355,000 after acquiring an additional 14,385 shares during the last quarter. Empowered Funds LLC raised its position in Avis Budget Group by 10.1% during the first quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider’s stock valued at $285,000 after purchasing an additional 343 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Avis Budget Group by 16.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 65,023 shares of the business services provider’s stock valued at $4,935,000 after purchasing an additional 9,246 shares during the period. Prudential Financial Inc. bought a new stake in shares of Avis Budget Group in the 2nd quarter valued at approximately $352,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of Avis Budget Group by 19.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider’s stock worth $72,000 after purchasing an additional 70 shares during the period. 96.35% of the stock is owned by hedge funds and other institutional investors.

Avis Budget Group Stock Performance

The stock has a market cap of $9.67 billion, a PE ratio of -11.44 and a beta of 1.94. The stock has a fifty day moving average price of $188.41 and a 200 day moving average price of $152.49.

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.