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

Avis Budget Group, Inc. (NASDAQ:CAR) shares 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 trading hands.

Other equities research analysts also recently issued reports about the stock. Barclays lowered their target price on shares of Avis Budget Group from $150.00 to $120.00 and set an “equal weight” rating for the company in a report on Monday, November 3rd. Susquehanna lowered their price objective on shares of 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. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Avis Budget Group in a research report on Wednesday, January 21st. Wall Street Zen cut Avis Budget Group from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Morgan Stanley reissued an “equal weight” rating and set a $142.00 price target (up previously from $115.00) on shares of Avis Budget Group in a research report on Monday, December 8th. One equities research analyst has rated the stock with a Buy rating, four have issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $137.57.

Avis Budget Group News Roundup

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.)

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC grew its stake in shares of Avis Budget Group by 19.6% in the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider’s stock valued at $72,000 after buying an additional 70 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in Avis Budget Group by 26.5% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider’s stock worth $58,000 after acquiring an additional 76 shares in the last quarter. Deseret Mutual Benefit Administrators boosted its holdings in Avis Budget Group by 102.3% in the 3rd quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider’s stock worth $28,000 after acquiring an additional 88 shares during the period. Wedmont Private Capital grew its position in Avis Budget Group by 6.1% in the third quarter. Wedmont Private Capital now owns 1,624 shares of the business services provider’s stock valued at $242,000 after acquiring an additional 93 shares in the last quarter. Finally, State of Michigan Retirement System raised its stake in shares of Avis Budget Group by 2.5% during the second quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider’s stock valued at $689,000 after purchasing an additional 100 shares during the period. 96.35% of the stock is owned by hedge funds and other institutional investors.

Avis Budget Group Stock Down 0.3%

The business’s 50 day moving average price is $123.10 and its 200-day moving average price is $139.50. The company has a market cap of $3.40 billion, a PE ratio of -3.80 and a beta of 2.33.

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.