Car rental agency

Avis Budget Group (NASDAQ:CAR) trades down 5.6% after analyst downgrade

Shares of Avis Budget Group, Inc. (NASDAQ:CAR – Get Rating) fell 5.6% midday Wednesday after Morgan Stanley lowered its price target on the stock from $168.00 at $156.00. Morgan Stanley currently has an underweight rating on the stock. Avis Budget Group traded as low as $182.40 and last traded at $183.65. 4,514 shares changed hands during trading, down 100% from the average session volume of 918,333 shares. The stock had previously closed at $194.54.

Several other equity research analysts have also recently released reports on CAR. Deutsche Bank Aktiengesellschaft raised its price target on Avis Budget Group shares from $193.00 to $238.00 in a Wednesday, May 4 research note. Barclays downgraded shares of Avis Budget Group from an ‘underweight’ to an ‘equal weight’ rating and raised its price target for the company from $164.00 to $245.00 in a report Wednesday, April 20. JPMorgan Chase & Co. cut its price target on Avis Budget Group shares from $205.00 to $190.00 and set a “neutral” rating on the stock in a Wednesday, February 16 report. Zacks Investment Research upgraded shares of Avis Budget Group from a “hold” rating to a “strong-buy” rating and set a price target of $310.00 on the stock in a Tuesday, April 19 report . Finally, Bank of America downgraded shares of Avis Budget Group from a “neutral” rating to an “underperforming” rating and reduced its price target for the company from $250.00 to $240.00 in a report from Wednesday, April 6. Two research analysts rated the stock with a sell rating, four issued a hold rating and one issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $229.83.

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In other Avis Budget Group news, Chairman Bernardo Hees bought 28,334 shares in a deal that took place on Tuesday, May 24. The shares were purchased at an average cost of $172.78 per share, with a total value of $4,895,548.52. Following the completion of the acquisition, the President now directly owns 450,476 shares of the company, valued at approximately $77,833,243.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, accessible via this link. 37.30% of the shares are currently held by company insiders.

Several hedge funds have recently bought and sold shares of CAR. The Canada Pension Plan Investment Board increased its stake in shares of Avis Budget Group by 224.8% during the fourth quarter. The Canada Pension Plan Investment Board now owns 1,299,208 shares of the business services provider worth $269,417,000 after buying 899,208 more shares in the last quarter. Bank of America Corp DE increased its stake in shares of Avis Budget Group by 203.5% in the first quarter. Bank of America Corp DE now owns 789,094 shares of the business services provider worth $207,769,000 after buying an additional 529,066 shares in the last quarter. Norges Bank bought a new position in Avis Budget Group in the fourth quarter worth $82,318,000. Renaissance Technologies LLC bought a new position in Avis Budget Group in the fourth quarter worth $50,677,000. Finally, Hsbc Holdings PLC increased its position in Avis Budget Group by 11,720.4% in the first quarter. Hsbc Holdings PLC now owns 198,110 shares of the business services provider worth $52,044,000 after acquiring an additional 196,434 shares last quarter.

The company has a 50-day simple moving average of $239.95 and a 200-day simple moving average of $223.82. The stock has a market capitalization of $8.79 billion, a PE ratio of 6.00, a PEG ratio of 0.27 and a beta of 2.05.

Avis Budget Group (NASDAQ:CAR – Get Rating) last announced its quarterly results on Monday, May 2. The business services provider reported earnings per share of $9.99 for the quarter, beating consensus analyst estimates of $3.45 from $6.54. Avis Budget Group recorded a negative return on equity of 635.44% and a net margin of 19.13%. During the same period of the previous year, the company made ($0.46) earnings per share. As a group, equity research analysts expect Avis Budget Group, Inc. to post earnings per share of 35.95 for the current fiscal year.

Avis Budget Group Company Profile (NASDAQ:CAR)

Avis Budget Group, Inc, together with its subsidiaries, provides car and truck rental, car sharing, and ancillary products and services to businesses and consumers. It operates the Avis brand, which provides vehicle rental and other mobility solutions to the premium business and leisure segments of the travel industry; the Budget Truck brand, a local one-way truck and van rental company with a fleet of approximately 20,000 vehicles, which are rented through a network of approximately 465 dealer-operated locations and 385 company-operated locations that serve the consumer and light commercial sectors in the continental United States; and the Zipcar brand, a car-sharing network.

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