Avis Budget Group (NASDAQ:CAR) Stock Rating Lowered by Zacks Research

Avis Budget Group (NASDAQ:CAR) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other analysts also recently issued reports on CAR. Morgan Stanley lifted their price objective on shares of Avis Budget Group from $97.00 to $99.00 and gave the company an “equal weight” rating in a report on Wednesday, May 20th. Susquehanna raised their target price on shares of Avis Budget Group from $105.00 to $140.00 and gave the company a “neutral” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. lifted their price target on shares of Avis Budget Group from $155.00 to $170.00 and gave the company an “underweight” rating in a research note on Tuesday, June 23rd. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $125.00 price objective on shares of Avis Budget Group in a research note on Friday, May 1st. Finally, Wall Street Zen cut Avis Budget Group from a “hold” rating to a “sell” rating in a report on Saturday. Five equities research analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Avis Budget Group has an average rating of “Reduce” and a consensus target price of $132.75.

Avis Budget Group Stock Performance

NASDAQ:CAR opened at $141.13 on Monday. The company has a market cap of $4.99 billion, a PE ratio of -7.77 and a beta of 1.92. Avis Budget Group has a 52-week low of $85.96 and a 52-week high of $847.70. The stock has a 50-day simple moving average of $166.78 and a 200 day simple moving average of $167.62.

Avis Budget Group (NASDAQ:CAR) last announced its earnings results on Tuesday, July 28th. The business services provider reported $0.98 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.05 by ($1.07). The company had revenue of $3 billion during the quarter, compared to analyst estimates of $3.10 billion. The business’s revenue was down 1.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.10 earnings per share. On average, research analysts predict that Avis Budget Group will post 1.69 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Avis Budget Group

Several institutional investors and hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd increased its stake in shares of Avis Budget Group by 1,845.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider’s stock worth $27,000 after purchasing an additional 203 shares during the period. Quarry LP bought a new stake in Avis Budget Group in the 4th quarter valued at $27,000. Basepoint Wealth LLC bought a new stake in Avis Budget Group in the 4th quarter valued at $32,000. Hollencrest Capital Management acquired a new position in Avis Budget Group in the 1st quarter valued at $44,000. Finally, Hantz Financial Services Inc. grew its holdings in Avis Budget Group by 70.4% in the 4th quarter. Hantz Financial Services Inc. now owns 431 shares of the business services provider’s stock valued at $55,000 after buying an additional 178 shares in the last quarter. Institutional investors and hedge funds own 96.35% of the company’s stock.

Trending Headlines about Avis Budget Group

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

• Positive Sentiment: Management’s fleet reductions helped produce record vehicle utilization and supported higher adjusted EBITDA margins. Avis also reaffirmed its 2026 EBITDA guidance, providing some reassurance that cost and fleet discipline may offset softer rental demand. CAR Q2 Earnings Miss Puts Fleet Discipline and 2026 Guidance in Focus
• Neutral Sentiment: Several law firms publicized or solicited participation in a securities class action involving Avis investors who purchased securities between February 20, 2025, and April 21, 2026. The lawsuit names Pentwater Capital Management and executive Matthew Halbower as defendants; the notices are investor-rights announcements rather than findings of wrongdoing against Avis. A September 29, 2026 deadline was cited for investors seeking to apply to lead the case. Pomerantz class action announcement
• Negative Sentiment: Avis reported quarterly EPS of $0.98, well below the $2.05 consensus estimate, while revenue of approximately $3.0 billion also missed expectations of $3.10 billion and declined 1.3% year over year. The results point to soft rental demand despite operational improvements. Avis Budget Stock Plunges Since Reporting Q2 Earnings Miss
• Negative Sentiment: Zacks Research downgraded CAR from “Hold” to “Strong Sell,” adding to concerns about the company’s weak liquidity, high leverage and premium valuation. Its negative P/E and elevated financial risk make the downgrade particularly damaging to sentiment. Zacks.com

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.