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

Avis Budget Group, Inc. (NASDAQ:CAR)’s share price gapped down prior to trading on Thursday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock had previously closed at $123.30, but opened at $101.69. Avis Budget Group shares last traded at $97.6690, with a volume of 597,808 shares.

A number of other research firms have also recently commented on CAR. Morgan Stanley reissued an “equal weight” rating and set a $142.00 price target (up from $115.00) on shares of Avis Budget Group in a report on Monday, December 8th. Weiss Ratings reiterated a “sell (d)” rating on shares of Avis Budget Group in a research report on Wednesday, January 21st. Barclays lowered their price target on Avis Budget Group from $150.00 to $120.00 and set an “equal weight” rating on the stock in a report on Monday, November 3rd. Susquehanna dropped their price target on Avis Budget Group from $145.00 to $130.00 and set a “neutral” rating for the company in a research note on Wednesday, October 29th. Finally, Wall Street Zen cut shares of Avis Budget Group from a “hold” rating to a “sell” rating in a research report on Saturday. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $137.57.

Trending Headlines about Avis Budget Group

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

• Positive Sentiment: Management outlined a structural reset and plans to drive higher fleet utilization in 2026, signaling a clear operational plan to restore margins and cash flow over the coming year. Avis Budget Group outlines structural reset and plans for higher fleet utilization in 2026
• Neutral Sentiment: The company released its Q4 and full-year 2025 results and the earnings presentation/call transcript (useful for details on adjustments, segment results, and management commentary). Avis Budget Group Reports Fourth Quarter and Full Year Results Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Company said the recent U.S. government shutdown contributed to weaker Q4 demand, providing a partial, but limited, explanation for the quarter’s softness. Avis Budget: Gov’t Shutdown Contributed to ‘Difficult’ Q4
• Negative Sentiment: Management posted a roughly $500M impairment tied to its EV fleet, and signaled a strategic pullback from EV deployment — a large one-time charge that materially reduced reported profitability. Avis Budget Group outlines structural reset and plans for higher fleet utilization in 2026
• Negative Sentiment: Q4 and full-year results missed consensus: revenue and adj. EBITDA came in below Street expectations, with near-zero Q4 EBITDA versus guidance — raising questions on near-term profit recovery. Avis Budget Group: A Broad Q4 Miss, A Big Impairment, And A Familiar Outcome
• Negative Sentiment: Shares had an earlier sharp drop after the Q4 release as investors digested the EV write-down, revenue miss and weaker demand trends; press coverage highlights the continued cost of the EV strategy shift. Avis Budget shares tumble 14% as EV fleet challenges drive Q4 loss, revenue miss
• Neutral Sentiment: Reported short-interest data in the notes appears anomalous/zeroed and is not a reliable signal from the latest filings. (No actionable change indicated.)

Hedge Funds Weigh In On Avis Budget Group

Several institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased 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 worth $1,355,000 after buying an additional 14,385 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of Avis Budget Group by 10.1% in the 1st quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider’s stock valued at $285,000 after acquiring an additional 343 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Avis Budget Group by 16.6% in 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 worth $4,935,000 after acquiring an additional 9,246 shares in the last quarter. Ethic Inc. bought a new stake in Avis Budget Group during the second quarter worth approximately $330,000. Finally, First Citizens Bank & Trust Co. raised its position in Avis Budget Group by 279.7% during the second quarter. First Citizens Bank & Trust Co. now owns 12,311 shares of the business services provider’s stock valued at $2,081,000 after purchasing an additional 9,069 shares during the period. Institutional investors own 96.35% of the company’s stock.

Avis Budget Group Price Performance

The firm has a market capitalization of $3.40 billion, a PE ratio of -3.80 and a beta of 2.33. The business has a 50-day simple moving average of $123.10 and a 200-day simple moving average of $139.50.

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.