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

Shares of Avis Budget Group, Inc. (NASDAQ:CAR) gapped down before the market opened on Thursday after Barclays downgraded the stock from an equal weight rating to an underweight rating. The stock had previously closed at $443.94, but opened at $402.01. Barclays now has a $150.00 price target on the stock, up from their previous price target of $95.00. Avis Budget Group shares last traded at $291.0020, with a volume of 2,642,220 shares.

Other equities research analysts also recently issued reports about the company. The Goldman Sachs Group set a $85.00 price objective on Avis Budget Group in a report on Monday, February 23rd. Deutsche Bank Aktiengesellschaft downgraded Avis Budget Group from a “buy” rating to a “hold” rating and set a $128.00 price objective on the stock. in a report on Monday, April 6th. Weiss Ratings restated a “sell (d)” rating on shares of Avis Budget Group in a report on Wednesday, January 21st. Morgan Stanley dropped their price objective on Avis Budget Group from $142.00 to $97.00 and set an “equal weight” rating on the stock in a report on Friday, March 6th. Finally, Wall Street Zen downgraded Avis Budget Group from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. Three analysts have rated the stock with a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Strong Sell” and an average target price of $124.00.

Insider Activity at Avis Budget Group

In related news, Director Lynn Krominga sold 1,950 shares of the company’s stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $91.54, for a total transaction of $178,503.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, major shareholder Pentwater Capital Management L purchased 425,000 shares of the company’s stock in a transaction that occurred on Friday, February 20th. The shares were purchased at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the transaction, the insider owned 3,987,100 shares in the company, valued at approximately $375,824,046. This represents a 11.93% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 50.48% of the company’s stock.

Key Avis Budget Group News

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

• Positive Sentiment: Legal overhang eased as some investor lawsuits against Avis management were dropped, removing a potential corporate governance overhang. Read More.
• Neutral Sentiment: A near-term catalyst: Avis will report Q1 2026 results on April 29, giving investors fresh fundamental data that could stabilize or accelerate moves. Read More.
• Neutral Sentiment: Recent parabolic run produced an all-time high and heavy retail interest, underscoring momentum-driven price moves rather than new company fundamentals. Read More.
• Negative Sentiment: Short squeeze unwind and rapid deleveraging caused a steep intraday collapse and large volume, driven by retail trading dynamics and short-covering that quickly reversed; headlines call it a meme-stock episode similar to prior squeezes. Read More.
• Negative Sentiment: Investor concern about dilution: reports that an equity offering could be coming to capitalize on the spike intensified selling pressure, since new shares would materially dilute existing holders. Read More.
• Negative Sentiment: Analyst and market pressure: JPMorgan reiterated an underweight rating with a $165 price target and options activity showed heavy put-buying, signaling bearish bets and reduced confidence among institutions. Read More. Read More.
• Negative Sentiment: Multiple LULD trading pauses and unusually high volume increased execution risk and amplified intraday swings, making the stock particularly volatile for short-term traders and institutional execution.

Institutional Investors Weigh In On Avis Budget Group

Several institutional investors and hedge funds have recently made changes to their positions in the company. EverSource Wealth Advisors LLC raised its position in shares of Avis Budget Group by 19.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider’s stock valued at $72,000 after acquiring an additional 70 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of 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 valued at $58,000 after acquiring an additional 76 shares in the last quarter. Deseret Mutual Benefit Administrators raised its position in shares of Avis Budget Group by 102.3% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider’s stock valued at $28,000 after acquiring an additional 88 shares in the last quarter. PNC Financial Services Group Inc. raised its position in shares of Avis Budget Group by 7.8% during the 3rd quarter. PNC Financial Services Group Inc. now owns 1,460 shares of the business services provider’s stock valued at $234,000 after acquiring an additional 106 shares in the last quarter. Finally, Wedmont Private Capital boosted its position in Avis Budget Group by 7.8% during the 4th quarter. Wedmont Private Capital now owns 1,750 shares of the business services provider’s stock valued at $222,000 after purchasing an additional 126 shares during the period. 96.35% of the stock is owned by institutional investors and hedge funds.

Avis Budget Group Trading Down 48.4%

The firm has a market cap of $8.10 billion, a price-to-earnings ratio of -9.02 and a beta of 1.94. The stock has a 50-day moving average of $190.67 and a 200-day moving average of $153.02.

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.