Avis Budget Group (NASDAQ:CAR) Shares Gap Down on Disappointing Earnings

Avis Budget Group, Inc. (NASDAQ:CAR) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $166.32, but opened at $150.07. Avis Budget Group shares last traded at $145.0590, with a volume of 132,324 shares trading hands.

The business services provider reported $0.98 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.05 by ($1.07). The company had revenue of $3 billion for the quarter, compared to analyst estimates of $3.10 billion. During the same quarter in the prior year, the business earned $0.10 earnings per share. The company’s revenue for the quarter was down 1.3% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on CAR shares. The Goldman Sachs Group boosted their price objective on shares of Avis Budget Group from $85.00 to $95.00 and gave the stock a “sell” rating in a report on Friday. Zacks Research raised Avis Budget Group from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 6th. Jefferies Financial Group downgraded Avis Budget Group from a “buy” rating to a “hold” rating and lifted their target price for the stock from $112.00 to $160.00 in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $125.00 price target on shares of Avis Budget Group in a research note on Friday, May 1st. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Avis Budget Group in a research report on Wednesday, May 20th. Six research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $132.75.

Insider Activity

In other Avis Budget Group news, EVP Ravi Simhambhatla sold 3,469 shares of Avis Budget Group stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $184.09, for a total transaction of $638,608.21. Following the sale, the executive vice president directly owned 13,876 shares of the company’s stock, valued at approximately $2,554,432.84. The trade was a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Edward P. Linnen sold 9,483 shares of the company’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $182.32, for a total value of $1,728,940.56. Following the completion of the sale, the executive vice president owned 37,932 shares in the company, valued at approximately $6,915,762.24. This represents a 20.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 50.48% of the company’s stock.

Hedge Funds Weigh In On Avis Budget Group

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd boosted its stake in Avis Budget Group by 1,845.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider’s stock valued at $27,000 after buying an additional 203 shares in the last quarter. Quarry LP bought a new stake in Avis Budget Group in the fourth quarter valued at $27,000. Basepoint Wealth LLC acquired a new position in Avis Budget Group during the fourth quarter worth $32,000. Hollencrest Capital Management acquired a new position in Avis Budget Group during the first quarter worth $44,000. Finally, Hantz Financial Services Inc. lifted its holdings in shares of Avis Budget Group by 70.4% during the fourth quarter. Hantz Financial Services Inc. now owns 431 shares of the business services provider’s stock valued at $55,000 after acquiring an additional 178 shares during the period. Institutional investors own 96.35% of the company’s stock.

Avis Budget Group Stock Down 12.7%

The stock has a fifty day simple moving average of $168.51 and a 200-day simple moving average of $166.97. The company has a market capitalization of $5.13 billion, a P/E ratio of -7.65 and a beta of 1.91.

About Avis Budget Group

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.