Avis Budget Group (NASDAQ:CAR) Trading Down 8.1% – Here’s Why

Avis Budget Group, Inc. (NASDAQ:CAR) dropped 8.1% during trading on Monday . The stock traded as low as $136.00 and last traded at $136.3970. Approximately 1,100,732 shares changed hands during mid-day trading, an increase of 42% from the average daily volume of 772,984 shares. The stock had previously closed at $148.45.

Analysts Set New Price Targets

Several brokerages have recently issued reports on CAR. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. The Goldman Sachs Group set a $85.00 price objective on Avis Budget Group in a research report on Monday, February 23rd. Wall Street Zen cut Avis Budget Group from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. Barclays cut their target price 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, Morgan Stanley reduced their target price 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. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, Avis Budget Group has an average rating of “Reduce” and an average target price of $124.71.

Avis Budget Group Trading Up 15.5%

The firm’s fifty day moving average price is $111.10 and its 200-day moving average price is $129.67. The company has a market cap of $5.94 billion, a price-to-earnings ratio of -6.64 and a beta of 2.32.

Insider Activity

In other Avis Budget Group news, Director Lynn Krominga sold 1,950 shares of the stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $91.54, for a total value of $178,503.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Pentwater Capital Management L purchased 425,000 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were acquired at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the transaction, the insider owned 3,987,100 shares of the company’s stock, valued at $375,824,046. This trade represents 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 corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of CAR. ING Groep NV increased its position in shares of Avis Budget Group by 440.2% during the third quarter. ING Groep NV now owns 1,035,000 shares of the business services provider’s stock worth $166,195,000 after acquiring an additional 843,400 shares in the last quarter. UBS Group AG lifted its position in Avis Budget Group by 37.3% in the 4th quarter. UBS Group AG now owns 2,964,807 shares of the business services provider’s stock valued at $380,444,000 after acquiring an additional 804,814 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new position in Avis Budget Group in the 3rd quarter worth $97,951,000. National Bank of Canada FI boosted its stake in Avis Budget Group by 166.7% in the 2nd quarter. National Bank of Canada FI now owns 880,239 shares of the business services provider’s stock worth $148,804,000 after purchasing an additional 550,239 shares during the period. Finally, Morgan Stanley increased its holdings in Avis Budget Group by 38.1% during the 4th quarter. Morgan Stanley now owns 1,975,675 shares of the business services provider’s stock worth $253,519,000 after purchasing an additional 545,574 shares in the last quarter. Institutional investors own 96.35% of the company’s stock.

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.