Avis Budget Group, Inc. (CAR) Stock Rating Upgraded by Zacks Investment Research
Avis Budget Group, Inc. (NASDAQ:CAR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The firm presently has a $46.00 target price on the business services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 11.62% from the company’s current price.
According to Zacks, “Avis Budget is aggressively increasing its presence in existing markets, while foraying in new markets like Iceland and Costa Rica. At the same time, the company is focusing on expanding its Budget brand, taking its multi-brand strategy to the next level. Anticipating strong travel trends for both leisure and commercial travelers and projecting sustained expansion of these trends, we believe that Avis Budget’s various acquisitions and collaborations will enhance its operational foothold in global markets. Moreover, sustained productivity growth, implementation of pricing initiatives and potential revenue-generating synergies from acquisitions bode well for the future. However, volatility in market demand, foreign currency risks and dependence on third-parties remain additional headwinds, leading to a tempered guidance. The company also underperformed the industry year to date.”
CAR has been the topic of a number of other reports. BidaskClub raised Avis Budget Group from a “sell” rating to a “hold” rating in a report on Saturday, June 24th. Deutsche Bank AG reissued a “buy” rating on shares of Avis Budget Group in a report on Monday, June 26th. MKM Partners reissued a “buy” rating and set a $40.00 price target on shares of Avis Budget Group in a report on Wednesday, June 28th. ValuEngine raised Avis Budget Group from a “hold” rating to a “buy” rating in a report on Thursday, July 6th. Finally, J P Morgan Chase & Co assumed coverage on Avis Budget Group in a report on Friday, August 4th. They set an “overweight” rating and a $39.00 price target on the stock. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus target price of $38.20.
Shares of Avis Budget Group (CAR) traded up 0.12% during trading on Wednesday, reaching $41.26. 1,010,476 shares of the company’s stock traded hands. Avis Budget Group has a 1-year low of $20.71 and a 1-year high of $41.73. The company has a 50 day moving average of $37.57 and a 200-day moving average of $30.42. The company has a market capitalization of $3.41 billion, a price-to-earnings ratio of 48.60 and a beta of 2.48.
Avis Budget Group (NASDAQ:CAR) last posted its earnings results on Monday, August 7th. The business services provider reported $0.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.32). The company had revenue of $2.24 billion during the quarter, compared to the consensus estimate of $2.27 billion. Avis Budget Group had a net margin of 0.86% and a return on equity of 74.80%. The business’s quarterly revenue was down .2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.63 earnings per share. Equities analysts predict that Avis Budget Group will post $2.61 earnings per share for the current year.
In related news, insider Ronald L. Nelson sold 150,000 shares of Avis Budget Group stock in a transaction dated Tuesday, September 12th. The stock was sold at an average price of $37.30, for a total transaction of $5,595,000.00. Following the transaction, the insider now directly owns 510,714 shares of the company’s stock, valued at $19,049,632.20. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Ronald L. Nelson sold 250,000 shares of Avis Budget Group stock in a transaction dated Friday, October 13th. The stock was sold at an average price of $41.02, for a total value of $10,255,000.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 435,708 shares of company stock worth $17,133,212. 2.80% of the stock is owned by corporate insiders.
Several large investors have recently added to or reduced their stakes in CAR. Karp Capital Management Corp acquired a new position in shares of Avis Budget Group in the 1st quarter valued at $531,000. Ameriprise Financial Inc. boosted its position in shares of Avis Budget Group by 1.0% in the 1st quarter. Ameriprise Financial Inc. now owns 236,174 shares of the business services provider’s stock valued at $6,986,000 after purchasing an additional 2,294 shares during the period. JPMorgan Chase & Co. boosted its position in shares of Avis Budget Group by 997.5% in the 1st quarter. JPMorgan Chase & Co. now owns 113,684 shares of the business services provider’s stock valued at $3,362,000 after purchasing an additional 103,326 shares during the period. OppenheimerFunds Inc. boosted its position in shares of Avis Budget Group by 32.2% in the 1st quarter. OppenheimerFunds Inc. now owns 63,185 shares of the business services provider’s stock valued at $1,869,000 after purchasing an additional 15,408 shares during the period. Finally, Principal Financial Group Inc. boosted its position in shares of Avis Budget Group by 0.5% in the 1st quarter. Principal Financial Group Inc. now owns 336,979 shares of the business services provider’s stock valued at $9,968,000 after purchasing an additional 1,643 shares during the period.
About Avis Budget Group
Avis Budget Group Inc is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis and Budget are a rental car supplier. It also owns Payless, which a car rental brand; Apex, which is a car rental brand in New Zealand and Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France.
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