Avis Budget Group (NASDAQ:CAR) Shares Gap Up – Should You Buy?

Avis Budget Group, Inc. (NASDAQ:CAR) shares gapped up prior to trading on Tuesday. The stock had previously closed at $118.83, but opened at $126.22. Avis Budget Group shares last traded at $125.4290, with a volume of 11,123 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Avis Budget Group in a research note on Monday, August 17th. The Goldman Sachs Group lifted their price objective on shares of Avis Budget Group from $94.00 to $108.00 and gave the stock a “sell” rating in a research report on Thursday, November 5th. Susquehanna lowered their target price on shares of Avis Budget Group from $140.00 to $125.00 and set a “neutral” rating for the company in a research note on Wednesday, November 4th. Barclays dropped their target price on Avis Budget Group from $160.00 to $115.00 and set an “equal weight” rating on the stock in a report on Monday, November 2nd. Finally, Wall Street Zen cut Avis Budget Group from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Five investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, Avis Budget Group presently has a consensus rating of “Reduce” and a consensus target price of $116.14.

Avis Budget Group Trading Down 1.7%

The firm’s fifty day moving average price is $113.96 and its 200-day moving average price is $152.93. The firm has a market cap of $4.43 billion, a price-to-earnings ratio of -5.40 and a beta of 1.95.

Avis Budget Group (NASDAQ:CAR) last announced its quarterly earnings results on Tuesday, November 3rd. The business services provider reported $5.15 EPS for the quarter, missing the consensus estimate of $8.01 by ($2.86). The company had revenue of $3.44 billion for the quarter, compared to analysts’ expectations of $3.42 billion. During the same quarter in the prior year, the company earned $10.11 EPS. Avis Budget Group’s quarterly revenue was down 2.4% compared to the same quarter last year. On average, sell-side analysts expect that Avis Budget Group, Inc. will post 1.08 earnings per share for the current year.

Insider Buying and Selling at Avis Budget Group

In other Avis Budget Group news, Director Glenn Lurie sold 6,101 shares of the firm’s stock in a transaction dated Friday, November 6th. The stock was sold at an average price of $120.38, for a total transaction of $734,438.38. Following the transaction, the director owned 11,508 shares of the company’s stock, valued at approximately $1,385,333.04. This trade represents a 34.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Lynn Krominga sold 28,404 shares of the firm’s stock in a transaction dated Friday, November 6th. The stock was sold at an average price of $120.25, for a total value of $3,415,581.00. Following the transaction, the director directly owned 1,762 shares in the company, valued at approximately $211,880.50. The trade was a 94.16% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 50.48% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Pentwater Capital Management LP purchased a new stake in Avis Budget Group in the second quarter valued at approximately $371,541,000. Hsbc Holdings PLC purchased a new position in shares of Avis Budget Group during the second quarter worth approximately $247,773,000. BlackRock Inc. purchased a new position in shares of Avis Budget Group during the second quarter worth approximately $245,413,000. Cibc World Market Inc. purchased a new position in shares of Avis Budget Group during the second quarter worth approximately $73,915,000. Finally, Mizuho Markets Americas LLC increased its holdings in shares of Avis Budget Group by 7.4% in the 1st quarter. Mizuho Markets Americas LLC now owns 400,000 shares of the business services provider’s stock valued at $58,340,000 after acquiring an additional 27,500 shares during the period. Hedge funds and other institutional investors own 96.35% of the company’s stock.

About Avis Budget Group

Avis Budget Group, Inc is a global vehicle rental provider operating primarily through the Avis and Budget brands. Its services include short- and longer-term car rentals for leisure and business travelers, as well as vehicle rental solutions for businesses and other organizations.

The company also operates Zipcar, a car-sharing service that lets members reserve vehicles for short periods. In the United States, its offerings include Budget Truck rentals. Avis Budget Group serves customers through company-operated locations and licensees across North America and other regions worldwide.

The company was formed in 2006 after Cendant spun off its car rental business.