Avis Budget Group (NASDAQ:CAR) Shares Gap Down – Here’s Why

Avis Budget Group, Inc. (NASDAQ:CAR)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $139.58, but opened at $132.20. Avis Budget Group shares last traded at $135.4630, with a volume of 315,733 shares changing hands.

Key Headlines Impacting Avis Budget Group

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

• Positive Sentiment: Airport gridlock and TSA staffing issues have lifted demand for rental cars, helping lift CAR shares and fundamentals in the near term. Hertz and Avis rally as airport gridlock fuels demand for car rentals
• Positive Sentiment: Investor interest in a potential short squeeze and broader travel-related demand helped push the stock higher earlier; caution noted around oil price direction. Why Avis Budget Group Stock Zoomed Ahead Today
• Neutral Sentiment: Some market commentators urged caution, suggesting the rally may be overextended and recommending alternative trades. Fade the Rally in Avis Stock & Buy Hertz’s Instead?
• Negative Sentiment: Management announced an at‑the‑market equity offering program (Equity Distribution Agreement), a potentially dilutive move that often pressures shares. Avis Budget Launches At-the-Market Equity Offering Program
• Negative Sentiment: The stock fell after‑hours following the company’s ATM offering news and other headlines, driving intraday reversal risk. Avis Budget stock tanks after hours – what’s driving it down?
• Negative Sentiment: An analyst cut CAR’s price target by ~12.6%, signaling reduced near‑term expectations from at least one sell‑side player. Avis Budget Group (CAR) price target decreased by 12.64% to 105.74
• Negative Sentiment: A Trump administration TSA payment order and related headlines created regulatory/operational uncertainty that weighed on shares earlier in the day. Avis and Hertz shares fall on Trump TSA payment order
• Negative Sentiment: A shareholder‑protection firm flagged a probe alleging differences between adjusted EBITDA commentary and GAAP results, adding legal/ reputational risk. Car Shareholders Lost Money? Levi & Korsinsky, LLP Probes Reported Vs.

Analyst Ratings Changes

Several research analysts have commented on the stock. Morgan Stanley dropped their price objective on shares of Avis Budget Group from $142.00 to $97.00 and set an “equal weight” rating for the company in a research note on Friday, March 6th. Zacks Research lowered shares of Avis Budget Group from a “hold” rating to a “strong sell” rating in a report on Thursday, February 19th. Weiss Ratings reiterated a “sell (d)” rating on shares of Avis Budget Group in a report on Wednesday, January 21st. Barclays reduced their price objective on shares of Avis Budget Group from $120.00 to $95.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 26th. Finally, Wall Street Zen downgraded shares of Avis Budget Group from a “hold” rating to a “sell” rating in a research note on Saturday, February 21st. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $124.71.

Avis Budget Group Stock Up 6.4%

The firm has a market cap of $5.23 billion, a PE ratio of -5.85 and a beta of 2.32. The business has a 50 day simple moving average of $110.42 and a two-hundred day simple moving average of $130.08.

Insider Transactions at Avis Budget Group

In other Avis Budget Group news, Director Lynn Krominga sold 1,950 shares of the business’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $91.54, for a total value of $178,503.00. 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 bought 425,000 shares of the company’s stock in a transaction on Friday, February 20th. The stock was bought at an average price of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the purchase, the insider directly owned 3,987,100 shares in the company, valued at approximately $375,824,046. This represents a 11.93% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 52.80% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CAR. Caitong International Asset Management Co. Ltd grew its position in shares of Avis Budget Group by 1,845.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider’s stock worth $27,000 after buying an additional 203 shares in the last quarter. Pacer Advisors Inc. raised its holdings in shares of Avis Budget Group by 138.3% in the fourth quarter. Pacer Advisors Inc. now owns 5,294 shares of the business services provider’s stock valued at $679,000 after acquiring an additional 3,072 shares in the last quarter. First Citizens Bank & Trust Co. lifted its stake in Avis Budget Group by 1.8% in the fourth quarter. First Citizens Bank & Trust Co. now owns 7,754 shares of the business services provider’s stock worth $995,000 after acquiring an additional 137 shares during the period. Empowered Funds LLC lifted its stake in Avis Budget Group by 6.0% in the fourth quarter. Empowered Funds LLC now owns 3,417 shares of the business services provider’s stock worth $438,000 after acquiring an additional 192 shares during the period. Finally, nVerses Capital LLC bought a new position in Avis Budget Group during the 4th quarter worth about $236,000. 96.35% of the stock is currently owned by hedge funds and other institutional investors.

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.