Avis Budget Group (CAR) Downgraded by Zacks Investment Research
Zacks Investment Research cut shares of Avis Budget Group (NASDAQ:CAR) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “Avis Budget continues to face hurdles like high fleet costs and stiff competition from other players in the market, mainly on grounds of pricing. The company faces the risk of losing rental volumes if it is unable to match up to industry pricing standards. In addition, volatility in market demand, foreign currency risks and dependence on third-parties remain headwinds. Avis Budget’s third-quarter margins were hurt by high fleet costs across both segments and adverse currency movements in the International segment. Though the company is progressing well with its disciplined pricing initiatives and expects these to offset the rising fleet costs, we would wait to see more pronounced results on this front before turning optimistic. However, sustained productivity growth, implementation of pricing initiatives and potential revenue-generating synergies from acquisitions bode well for future. It outperformed the industry in the last three months.”
Other analysts have also recently issued research reports about the stock. Goldman Sachs Group restated a hold rating and set a $37.00 target price on shares of Avis Budget Group in a report on Thursday, September 7th. Credit Suisse Group restated a hold rating on shares of Avis Budget Group in a report on Thursday, September 14th. Morgan Stanley boosted their target price on shares of Avis Budget Group from $18.00 to $21.00 and gave the company an underweight rating in a report on Friday, September 15th. B. Riley assumed coverage on Avis Budget Group in a research report on Friday, September 22nd. They issued a buy rating and a $36.00 price target for the company. Finally, ValuEngine raised Avis Budget Group from a hold rating to a buy rating in a research report on Thursday, October 5th. Two analysts have rated the stock with a sell rating, four have given a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of Buy and a consensus target price of $37.70.
Avis Budget Group (NASDAQ CAR) traded down $0.30 during mid-day trading on Tuesday, hitting $43.52. 1,087,500 shares of the stock were exchanged, compared to its average volume of 1,728,833. The company has a debt-to-equity ratio of 35.24, a current ratio of 1.28 and a quick ratio of 1.28. Avis Budget Group has a one year low of $20.71 and a one year high of $46.31. The company has a market capitalization of $3,567.89, a price-to-earnings ratio of 32.24 and a beta of 2.53.
Avis Budget Group (NASDAQ:CAR) last announced its earnings results on Monday, November 6th. The business services provider reported $3.10 earnings per share for the quarter, beating analysts’ consensus estimates of $2.99 by $0.11. The business had revenue of $2.75 billion for the quarter, compared to the consensus estimate of $2.78 billion. Avis Budget Group had a net margin of 1.26% and a return on equity of 95.28%. Avis Budget Group’s quarterly revenue was up 3.6% on a year-over-year basis. During the same period last year, the firm posted $2.47 earnings per share. analysts anticipate that Avis Budget Group will post 2.65 EPS for the current fiscal year.
In other Avis Budget Group news, CEO Shon Larry D. De sold 25,000 shares of the stock in a transaction on Monday, October 30th. The stock was sold at an average price of $42.00, for a total value of $1,050,000.00. Following the sale, the chief executive officer now owns 222,365 shares in the company, valued at $9,339,330. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, SVP David T. Calabria sold 1,250 shares of the stock in a transaction on Friday, December 8th. The stock was sold at an average price of $41.71, for a total value of $52,137.50. Following the completion of the sale, the senior vice president now owns 4,412 shares in the company, valued at approximately $184,024.52. The disclosure for this sale can be found here. Insiders sold a total of 739,581 shares of company stock valued at $30,037,022 over the last 90 days. 2.80% of the stock is currently owned by corporate insiders.
Several large investors have recently made changes to their positions in CAR. Pacer Advisors Inc. boosted its stake in Avis Budget Group by 4.0% during the second quarter. Pacer Advisors Inc. now owns 9,261 shares of the business services provider’s stock worth $253,000 after buying an additional 356 shares during the last quarter. Wittenberg Investment Management Inc. raised its position in Avis Budget Group by 0.7% in the second quarter. Wittenberg Investment Management Inc. now owns 69,309 shares of the business services provider’s stock valued at $1,890,000 after purchasing an additional 500 shares during the period. Thrivent Financial For Lutherans raised its position in Avis Budget Group by 3.6% in the second quarter. Thrivent Financial For Lutherans now owns 16,820 shares of the business services provider’s stock valued at $459,000 after purchasing an additional 580 shares during the period. New York State Common Retirement Fund raised its position in Avis Budget Group by 1.7% in the third quarter. New York State Common Retirement Fund now owns 90,399 shares of the business services provider’s stock valued at $3,441,000 after purchasing an additional 1,494 shares during the period. Finally, First Republic Investment Management Inc. raised its holdings in shares of Avis Budget Group by 2.1% in the 3rd quarter. First Republic Investment Management Inc. now owns 84,853 shares of the business services provider’s stock valued at $3,229,000 after buying an additional 1,777 shares during the period.
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Avis Budget Group Company Profile
Avis Budget Group Inc is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis and Budget are a rental car supplier. It also owns Payless, which a car rental brand; Apex, which is a car rental brand in New Zealand and Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France.
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