Avis Budget Group (NASDAQ:CAR) Stock Price Up 7.6% – Here’s Why

Avis Budget Group, Inc. (NASDAQ:CAR) shot up 7.6% on Thursday . The company traded as high as $157.05 and last traded at $158.0410. Approximately 275,695 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 1,757,953 shares. The stock had previously closed at $146.94.

Wall Street Analyst Weigh In

CAR has been the subject of several analyst reports. JPMorgan Chase & Co. upped their target price on Avis Budget Group from $155.00 to $170.00 and gave the company an “underweight” rating in a report on Tuesday, June 23rd. Jefferies Financial Group downgraded shares of Avis Budget Group from a “buy” rating to a “hold” rating and raised their price target for the company from $112.00 to $160.00 in a report on Friday, May 1st. Wall Street Zen upgraded shares of Avis Budget Group from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $125.00 target price on shares of Avis Budget Group in a research report on Friday, May 1st. Finally, Zacks Research upgraded shares of Avis Budget Group from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 6th. Six equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $131.50.

Avis Budget Group Stock Performance

The business has a fifty day simple moving average of $170.99 and a 200 day simple moving average of $163.17. The stock has a market capitalization of $5.77 billion, a price-to-earnings ratio of -8.58 and a beta of 1.91.

Avis Budget Group (NASDAQ:CAR) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share for the quarter, missing analysts’ consensus estimates of ($6.82) by ($1.19). The company had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same quarter in the prior year, the business posted ($14.35) earnings per share. The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. On average, sell-side analysts forecast that Avis Budget Group, Inc. will post 2.93 earnings per share for the current fiscal year.

Insider Activity

In other Avis Budget Group news, EVP Ravi Simhambhatla sold 3,469 shares of the business’s stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $184.09, for a total value of $638,608.21. Following the transaction, the executive vice president directly owned 13,876 shares in the company, valued at $2,554,432.84. The trade was a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Pentwater Capital Management L sold 3,347 shares of the stock in a transaction on Wednesday, April 22nd. The shares were sold at an average price of $438.74, for a total value of $1,468,462.78. Following the transaction, the insider directly owned 6,177,100 shares of the company’s stock, valued at approximately $2,710,140,854. This trade represents a 0.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 16,299 shares of company stock worth $3,836,012 over the last quarter. Insiders own 50.48% of the company’s stock.

Hedge Funds Weigh In On Avis Budget Group

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

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.