Avis Budget Group (NASDAQ:CAR) Shares Gap Down – Here’s What Happened

Avis Budget Group, Inc. (NASDAQ:CAR) gapped down before the market opened on Thursday . The stock had previously closed at $123.30, but opened at $101.69. Avis Budget Group shares last traded at $97.6690, with a volume of 597,808 shares trading hands.

Key Avis Budget Group News

Here are the key news stories impacting Avis Budget Group this week:

• Neutral Sentiment: Company released official fourth-quarter and full-year results and an investor slide deck (primary disclosure for investors). Avis Budget Group Reports Fourth Quarter and Full Year Results
• Neutral Sentiment: Reported short-interest data for February shows odd/zero values in the public summary (no clear new signal from short-interest figures). No linked actionable change in ownership was reported.
• Negative Sentiment: Avis reported a massive quarterly EPS miss (reported -$21.25 vs. consensus -$0.29) and missed revenue (≈$2.66B vs. est. $2.75B), highlighting the headline driver of the share move. Avis Budget Group Reports Fourth Quarter and Full Year Results (Yahoo)
• Negative Sentiment: Analysts and press point to EV fleet challenges and the company’s move away from EVs as a material near-term cost and operational headwind that contributed to the Q4 loss and revenue miss. Avis Budget shares tumble 14% as EV fleet challenges drive Q4 loss, revenue miss
• Negative Sentiment: Coverage from Seeking Alpha and MarketWatch frames the quarter as driven by the strategic shift away from EVs and weaker rental demand, which together pressure margins and near-term profitability. Shift away from EVs continues to cost Avis Budget (Seeking Alpha) Avis Budget Group Posts 4Q Loss With Move Away From EVs (MarketWatch)

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Susquehanna cut their price objective on Avis Budget Group from $145.00 to $130.00 and set a “neutral” rating for the company in a report on Wednesday, October 29th. Morgan Stanley reaffirmed an “equal weight” rating and set a $142.00 price target (up from $115.00) on shares of Avis Budget Group in a research report on Monday, December 8th. Zacks Research upgraded shares of Avis Budget Group from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 18th. Barclays reduced their target price on Avis Budget Group from $150.00 to $120.00 and set an “equal weight” rating for the company in a research note on Monday, November 3rd. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Avis Budget Group in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $137.57.

Avis Budget Group Stock Down 21.4%

The company’s fifty day moving average price is $124.56 and its 200 day moving average price is $140.24. The company has a market capitalization of $3.41 billion, a P/E ratio of -1.62 and a beta of 2.33.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada grew its stake in Avis Budget Group by 414.0% during the first quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider’s stock worth $1,355,000 after buying an additional 14,385 shares in the last quarter. Empowered Funds LLC lifted its holdings in shares of Avis Budget Group by 10.1% during the 1st quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider’s stock worth $285,000 after acquiring an additional 343 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Avis Budget Group by 16.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 65,023 shares of the business services provider’s stock worth $4,935,000 after acquiring an additional 9,246 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Avis Budget Group during the 2nd quarter worth approximately $1,352,000. Finally, Ethic Inc. bought a new position in Avis Budget Group in the second quarter valued at approximately $330,000. Institutional investors and hedge funds 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.