Avis Budget Group (NASDAQ:CAR) Stock Price Down 9.7% Following Analyst Downgrade

Avis Budget Group, Inc. (NASDAQ:CAR) fell 9.7% on Friday after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. JPMorgan Chase & Co. now has a $165.00 price target on the stock, up from their previous price target of $123.00. Avis Budget Group traded as low as $216.23 and last traded at $207.0220. 1,777,956 shares changed hands during mid-day trading, a decline of 11% from the average session volume of 1,987,325 shares. The stock had previously closed at $229.14.

CAR has been the topic of a number of other research reports. Weiss Ratings restated a “sell (d)” rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Barclays downgraded Avis Budget Group from an “equal weight” rating to an “underweight” rating and upped their target price for the company from $95.00 to $150.00 in a research report on Monday. Zacks Research cut Avis Budget Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 19th. Wall Street Zen downgraded Avis Budget Group from a “hold” rating to a “sell” rating in a research note on Saturday, February 21st. Finally, Deutsche Bank Aktiengesellschaft cut shares of Avis Budget Group from a “buy” rating to a “hold” rating and set a $128.00 price objective for the company. in a research report on Monday, April 6th. Three analysts have rated the stock with a Hold rating and six have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Strong Sell” and an average target price of $124.00.

Insider Buying and Selling

In other Avis Budget Group news, major shareholder Pentwater Capital Management L bought 425,000 shares of the business’s stock in a transaction on Friday, February 20th. The stock was purchased at an average cost 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 of the company’s stock, valued at approximately $375,824,046. This trade represents a 11.93% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Lynn Krominga sold 1,950 shares of the firm’s stock in a transaction on Friday, February 20th. The shares were sold at an average price of $91.54, for a total value of $178,503.00. The SEC filing for this sale provides additional information. Company insiders own 50.48% of the company’s stock.

Avis Budget Group News Summary

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 multi‑front risk for the company. Investors Drop Suits
• Positive Sentiment: Earlier momentum showed strong retail interest — the stock reached an all‑time high during the squeeze, demonstrating substantial buying power and interest in CAR. Avis Hits New All-Time High
• Neutral Sentiment: Trading experienced repeated LULD halts across sessions, reflecting extreme volatility and triggering execution interruptions for traders (several intraday pauses).
• Negative Sentiment: Short squeeze has largely unraveled, producing a rapid and deep decline from the peak — retail-driven momentum reversed and sellers dominated after the squeeze cooled. Short Squeeze Unravels
• Negative Sentiment: Reports indicate a hedge fund central to the squeeze added to its stake before the rout, raising questions about trading behavior and drawing regulatory/market scrutiny that could weigh on sentiment. Hedge Fund Added Stake
• Negative Sentiment: Investors are pricing in dilution risk after commentary and analyst notes flagged the likelihood of an equity offering to capitalize on the high share price — potential dilution is pressuring buyers. Equity Offering Concerns
• Negative Sentiment: JPMorgan downgraded CAR to underweight and set a lower price target, adding analyst-driven downside pressure amid the volatility. JPMorgan Downgrade
• Negative Sentiment: Market commentary and technical analysts flagged this as one of Avis’ worst days in decades, reinforcing the narrative of a parabolic rally that ended in a hard reversal. Worst Day in 28 Years

Institutional Trading of Avis Budget Group

Institutional investors and hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd grew its position in Avis Budget Group by 1,845.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider’s stock valued at $27,000 after acquiring an additional 203 shares during the last quarter. Quarry LP bought a new position in shares of Avis Budget Group in the fourth quarter worth about $27,000. Deseret Mutual Benefit Administrators lifted its holdings 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 worth $28,000 after acquiring an additional 88 shares during the last quarter. Basepoint Wealth LLC acquired a new stake in shares of Avis Budget Group in the 4th quarter valued at approximately $32,000. Finally, Hantz Financial Services Inc. boosted its stake in shares of Avis Budget Group by 136.4% in the 3rd quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider’s stock valued at $41,000 after purchasing an additional 146 shares in the last quarter. 96.35% of the stock is currently owned by institutional investors.

Avis Budget Group Stock Performance

The firm’s fifty day moving average is $192.38 and its 200-day moving average is $153.40. The company has a market capitalization of $7.21 billion, a P/E ratio of -8.03 and a beta of 1.94.

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.