Avis Budget Group (NASDAQ:CAR) Sees Strong Trading Volume – Time to Buy?

Shares of Avis Budget Group, Inc. (NASDAQ:CAR) saw unusually-strong trading volume on Wednesday . Approximately 2,155,652 shares were traded during mid-day trading, an increase of 73% from the previous session’s volume of 1,249,328 shares.The stock last traded at $352.4090 and had previously closed at $411.56.

Key Avis Budget Group News

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

• Positive Sentiment: Retail-driven short-squeeze / momentum rally has pushed CAR far higher over the past month, attracting attention and driving large percentage gains. Article Title
• Positive Sentiment: Unusually high options volume and call buying are amplifying upside pressure and intraday moves, a hallmark of speculative squeezes that can accelerate rallies. Article Title
• Neutral Sentiment: Multiple LULD (limit up / limit down) trading pauses occurred during the last two sessions, signaling extreme volatility and regulatory breaks rather than company-specific news.
• Negative Sentiment: Bloomberg reports that the stock’s ~200% run is luring new short sellers who believe a reversion “back to reality” is possible, increasing the risk of pullbacks. Article Title
• Negative Sentiment: Valuation concerns: analysts and commentators note a sharp disconnect between the share price move and fundamentals, urging caution on stretched multiples. Article Title
• Negative Sentiment: Signs the short squeeze may be stalling: some sessions have seen sharp pullbacks (and related weakness at peers like Hertz), suggesting momentum can reverse quickly. Article Title

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on CAR shares. Morgan Stanley lowered their target price on Avis Budget Group from $142.00 to $97.00 and set an “equal weight” rating on the stock in a report on Friday, March 6th. The Goldman Sachs Group set a $85.00 price objective on Avis Budget Group in a research note on Monday, February 23rd. Barclays decreased their price objective on Avis Budget Group from $120.00 to $95.00 and set an “equal weight” rating on the stock in a research note on Thursday, February 26th. Wall Street Zen downgraded Avis Budget Group from a “hold” rating to a “sell” rating in a research note on Saturday, February 21st. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Avis Budget Group in a research note on Wednesday, January 21st. Five equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $115.00.

Avis Budget Group Stock Up 13.4%

The firm has a 50 day moving average price of $152.64 and a 200 day moving average price of $141.25. The stock has a market cap of $15.86 billion, a P/E ratio of -17.68 and a beta of 1.94.

Insider Activity at Avis Budget Group

In other Avis Budget Group news, major shareholder Pentwater Capital Management L bought 425,000 shares of the firm’s stock in a transaction that occurred on Friday, February 20th. The shares were bought at an average price of $94.26 per share, with a total value of $40,060,500.00. Following the purchase, 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Lynn Krominga sold 1,950 shares of Avis Budget Group stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $91.54, for a total value of $178,503.00. The disclosure for this sale is available in the SEC filing. 50.48% of the stock is currently owned by company insiders.

Institutional Trading of Avis Budget Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in CAR. Caitong International Asset Management Co. Ltd raised its stake in Avis Budget Group by 1,845.5% during 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 purchasing an additional 203 shares during the period. Quarry LP bought a new stake in Avis Budget Group during the 4th quarter valued at approximately $27,000. Deseret Mutual Benefit Administrators raised its stake in Avis Budget Group by 102.3% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider’s stock valued at $28,000 after purchasing an additional 88 shares during the period. Basepoint Wealth LLC bought a new stake in Avis Budget Group during the 4th quarter valued at approximately $32,000. Finally, Hantz Financial Services Inc. raised its stake in Avis Budget Group by 136.4% during the 3rd quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider’s stock valued at $41,000 after purchasing an additional 146 shares during the period. 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.