Avis Budget Group (NASDAQ:CAR) Downgraded by Zacks Research to Strong Sell

Zacks Research lowered shares of Avis Budget Group (NASDAQ:CAR) from a hold rating to a strong sell rating in a report published on Thursday morning,Zacks.com reports.

CAR has been the topic of a number of other research reports. Wall Street Zen cut Avis Budget Group from a “hold” rating to a “sell” rating in a report on Saturday. Morgan Stanley reiterated an “equal weight” rating and set a $142.00 target price (up from $115.00) on shares of Avis Budget Group in a research report on Monday, December 8th. 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 report on Wednesday, October 29th. Barclays cut their price target on Avis Budget Group from $150.00 to $120.00 and set an “equal weight” rating for the company in a research note on Monday, November 3rd. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $137.57.

Avis Budget Group Stock Down 0.3%

Shares of NASDAQ CAR opened at $96.47 on Thursday. The stock has a market capitalization of $3.40 billion, a price-to-earnings ratio of -3.80 and a beta of 2.33. Avis Budget Group has a 52 week low of $54.03 and a 52 week high of $212.81. The firm has a 50-day moving average price of $123.10 and a 200 day moving average price of $139.50.

Institutional Trading of Avis Budget Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAR. EverSource Wealth Advisors LLC lifted its holdings in Avis Budget Group by 19.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider’s stock valued at $72,000 after purchasing an additional 70 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Avis Budget Group by 26.5% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider’s stock worth $58,000 after buying an additional 76 shares in the last quarter. Deseret Mutual Benefit Administrators raised its position in shares of Avis Budget Group by 102.3% in the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider’s stock valued at $28,000 after buying an additional 88 shares during the last quarter. Wedmont Private Capital lifted its stake in shares of Avis Budget Group by 6.1% during the third quarter. Wedmont Private Capital now owns 1,624 shares of the business services provider’s stock valued at $242,000 after buying an additional 93 shares during the period. Finally, State of Michigan Retirement System boosted its position in 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 worth $689,000 after acquiring an additional 100 shares during the last quarter. Hedge funds and other institutional investors own 96.35% of the company’s stock.

Key Headlines Impacting 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.)

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.