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

Avis Budget Group, Inc. (NASDAQ:CAR)’s stock price gapped down before the market opened on Monday after Deutsche Bank Aktiengesellschaft downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $190.42, but opened at $182.80. Deutsche Bank Aktiengesellschaft now has a $128.00 price target on the stock. Avis Budget Group shares last traded at $199.3510, with a volume of 446,439 shares traded.

Several other brokerages have also issued reports on CAR. The Goldman Sachs Group set a $85.00 price target on shares of Avis Budget Group in a research note on Monday, February 23rd. Zacks Research lowered shares of Avis Budget Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 19th. Morgan Stanley lowered their price target on shares of Avis Budget Group from $142.00 to $97.00 and set an “equal weight” rating on the stock in a research note on Friday, March 6th. Weiss Ratings reiterated a “sell (d)” rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Finally, Barclays lowered their price target on shares of Avis Budget Group from $120.00 to $95.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 26th. Five investment analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $115.00.

Insider Activity

In other 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 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 acquired 425,000 shares of the stock in a transaction dated Friday, February 20th. The shares were purchased 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 $375,824,046. The trade was a 11.93% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 52.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC increased its stake 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 worth $72,000 after purchasing an additional 70 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings 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 worth $58,000 after buying an additional 76 shares during the period. Deseret Mutual Benefit Administrators boosted its holdings 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 worth $28,000 after buying an additional 88 shares during the period. Wedmont Private Capital boosted its holdings in shares of Avis Budget Group by 6.1% during the 3rd quarter. Wedmont Private Capital now owns 1,624 shares of the business services provider’s stock worth $242,000 after buying an additional 93 shares during the period. Finally, PNC Financial Services Group Inc. boosted its holdings 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 worth $234,000 after buying an additional 106 shares during the period. 96.35% of the stock is currently owned by institutional investors and hedge funds.

Avis Budget Group Stock Performance

The firm has a market cap of $7.50 billion, a P/E ratio of -8.37 and a beta of 1.94. The firm’s fifty day moving average is $116.57 and its 200 day moving average is $130.71.

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.