Avis Budget Group (NASDAQ:CAR) Shares Gap Down – Time to Sell?

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.

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)

Analyst Upgrades and Downgrades

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

Avis Budget Group Stock Performance

The company has a market cap of $3.41 billion, a price-to-earnings ratio of -1.62 and a beta of 2.33. The company has a fifty day moving average of $124.56 and a two-hundred day moving average of $140.24.

Institutional Trading of Avis Budget Group

Several hedge funds and other institutional investors have recently made changes to their positions in CAR. First Citizens Bank & Trust Co. increased its stake in shares of Avis Budget Group by 1.8% in the fourth quarter. First Citizens Bank & Trust Co. now owns 7,754 shares of the business services provider’s stock valued at $995,000 after buying an additional 137 shares during the period. Empowered Funds LLC grew its holdings in Avis Budget Group by 6.0% during the 4th quarter. Empowered Funds LLC now owns 3,417 shares of the business services provider’s stock worth $438,000 after acquiring an additional 192 shares during the last quarter. nVerses Capital LLC acquired a new position in Avis Budget Group in the 4th quarter valued at approximately $236,000. VARCOV Co. acquired a new position in Avis Budget Group in the 4th quarter valued at approximately $331,000. Finally, SummitTX Capital L.P. raised its stake in shares of Avis Budget Group by 155.8% during the fourth quarter. SummitTX Capital L.P. now owns 14,350 shares of the business services provider’s stock valued at $1,841,000 after acquiring an additional 8,740 shares during the last quarter. 96.35% of the stock is currently owned by institutional investors.

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.