Avis Budget Group (NASDAQ:CAR) Shares Gap Down – Should You Sell?

Avis Budget Group, Inc. (NASDAQ:CAR)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $371.01, but opened at $352.05. Avis Budget Group shares last traded at $341.5940, with a volume of 1,421,975 shares trading hands.

Key Headlines Impacting Avis Budget Group

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

• Positive Sentiment: Multiple articles highlight a sharp, recent rally (shares up sharply over the past month) that pushed CAR to new highs, drawing buying interest and momentum traders. Avis Budget (CAR) Stock Soars 264% in Just One Month — What’s Behind the Rally?
• Positive Sentiment: Coverage in Barron’s explains drivers behind the surge and keeps the stock on investors’ radar, which can sustain elevated demand from momentum and speculative traders. Avis Stock Soared 264% in a Month. What Could Be Driving the Shares Higher.
• Positive Sentiment: Yahoo Finance reports CAR hit an all?time high after a multi?day rally, signaling strong short?term bullishness that attracts new flow. Avis Budget (CAR) Hits All-Time High After 9-Day Rally — Time to Sell?
• Neutral Sentiment: Unusually high options volume has been reported, indicating elevated speculative activity; this increases volatility risk but doesn’t by itself imply direction. Avis Budget Group Sees Unusually High Options Volume (NASDAQ:CAR)
• Neutral Sentiment: An investment comparison piece (AAII) contrasts CAR with other stocks, useful for longer?term investors but less likely to move price intraday. Which Is a Better Investment, Avis Budget Group, Inc. or Old Dominion Freight Line, Inc. Stock?
• Negative Sentiment: Countering the rally, outlets report signs the short?squeeze may be stalling, which is triggering profit?taking and downward pressure on CAR and peers. Hertz and Avis Drop 7% as Car Rental Short Squeeze Shows Signs of Stalling
• Negative Sentiment: The stock experienced a LULD (limit up/limit down) trading pause today, underscoring extreme intraday volatility and sometimes leading to short?term liquidity gaps or selling pressure when trading resumes. Trading halt for “CAR” at 10:16 AM (LULD pause)

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft downgraded shares of Avis Budget Group from a “buy” rating to a “hold” rating and set a $128.00 price objective on the stock. in a report on Monday, April 6th. Wall Street Zen downgraded shares of Avis Budget Group from a “hold” rating to a “sell” rating in a research note on Saturday, February 21st. Zacks Research downgraded Avis Budget Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 19th. The Goldman Sachs Group set a $85.00 target price on Avis Budget Group in a report on Monday, February 23rd. Finally, Morgan Stanley decreased their price target on Avis Budget Group from $142.00 to $97.00 and set an “equal weight” rating for the company in a research note on Friday, March 6th. Five research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $115.00.

Avis Budget Group Stock Down 3.8%

The stock has a market cap of $13.98 billion, a P/E ratio of -15.59 and a beta of 1.94. The firm has a 50 day simple moving average of $145.95 and a 200-day simple moving average of $139.10.

Insiders Place Their Bets

In related news, major shareholder Pentwater Capital Management L acquired 425,000 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were bought at an average cost of $94.26 per share, with a total value of $40,060,500.00. Following the completion of the transaction, the insider directly 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 acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Lynn Krominga sold 1,950 shares of Avis Budget Group stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $91.54, for a total transaction of $178,503.00. The disclosure for this sale is available in the SEC filing. 50.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Avis Budget Group

Several institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada grew its holdings in Avis Budget Group by 414.0% in the 1st quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider’s stock valued at $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% in the first 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 last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in 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 last quarter. Prudential Financial Inc. acquired a new position in Avis Budget Group in the 2nd quarter valued at approximately $352,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in Avis Budget Group by 19.6% in the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider’s stock valued at $72,000 after acquiring an additional 70 shares during the last quarter. 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.