Avis Budget Group (NASDAQ:CAR) Shares Up 6.3% – Here’s What Happened

Avis Budget Group, Inc. (NASDAQ:CAR) shares shot up 6.3% on Tuesday . The company traded as high as $198.99 and last traded at $198.8440. 833,633 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 2,058,169 shares. The stock had previously closed at $187.07.

More Avis Budget Group News

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

• Positive Sentiment: Q1 revenue beat and improving regional trends — Avis reported revenue of $2.53B, above consensus, and Americas revenue grew (the first y/y growth since 2023), which supports recovery in core demand. Avis Budget: Q1 Americas Revenue Up, First Growth Since ’23
• Neutral Sentiment: Legal/trading developments remain unresolved — the company disclosed a trading dispute with a hedge fund tied to the recent squeeze (Avis says the fund owes it money); the outcome could move the stock but timing and size are uncertain. A Wild Short Squeeze on Avis’s Stock Takes Another Surprising Turn
• Neutral Sentiment: Relative market action — Hertz rallied on an unrelated Uber robotaxi deal while Avis showed much smaller moves, highlighting that some peer catalysts aren’t helping CAR today. Hertz Gains 13% on Uber Robotaxi Deal While Avis Rises 2%
• Negative Sentiment: EPS miss and stock reaction — Q1 EPS was a wider loss (?$8.01 vs. est. ?$6.82), which triggered sharp intraday selling and headline-driven volatility. Avis Budget Group Delivers Impressive Q1 CY2026 But Stock Drops
• Negative Sentiment: Heavy insider/institutional selling — large block sales by Pentwater and other disclosures have pressured sentiment and increased supply. Pentwater Capital Management L Sells Shares
• Negative Sentiment: Volatility signals and bearish flows — temporary trading halts (LULD pauses), a surge in put buying, and headlines about a dramatic short-squeeze reversal increase downside risk and trading unpredictability. Avis Shares Plunges After Mixed Q1 Results

Analyst Upgrades and Downgrades

CAR has been the subject of a number of research reports. Morgan Stanley reduced their price target on shares of Avis Budget Group from $142.00 to $97.00 and set an “equal weight” rating for the company in a research report on Friday, March 6th. Zacks Research cut shares of 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 price target on Avis Budget Group in a research report on Monday, February 23rd. Barclays lowered shares of Avis Budget Group from an “equal weight” rating to an “underweight” rating and lifted their price objective for the company from $95.00 to $150.00 in a research note on Monday, April 20th. Finally, Wall Street Zen lowered shares of Avis Budget Group from a “hold” rating to a “sell” rating in a research note on Saturday, February 21st. Three investment analysts have rated the stock with a Hold rating and six have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Strong Sell” and an average target price of $124.00.

Avis Budget Group Stock Down 0.3%

The firm has a market cap of $6.38 billion, a price-to-earnings ratio of -9.48 and a beta of 1.94. The stock has a fifty day moving average price of $197.79 and a 200-day moving average price of $154.39.

Avis Budget Group (NASDAQ:CAR) last released its earnings results on Wednesday, April 29th. The business services provider reported ($8.01) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($6.82) by ($1.19). The firm had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same quarter in the prior year, the firm posted ($14.35) earnings per share. The company’s revenue for the quarter was up 4.1% on a year-over-year basis. As a group, research analysts expect that Avis Budget Group, Inc. will post 3.87 earnings per share for the current year.

Insider Activity

In other news, major shareholder Pentwater Capital Management L purchased 425,000 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were acquired at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the purchase, the insider directly owned 3,987,100 shares in the company, valued at $375,824,046. The trade was a 11.93% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Edward P. Linnen sold 9,483 shares of the business’s stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $182.32, for a total transaction of $1,728,940.56. Following the transaction, the executive vice president owned 37,932 shares in the company, valued at approximately $6,915,762.24. This trade represents a 20.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 18,249 shares of company stock valued at $4,014,515. 50.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of CAR. Deseret Mutual Benefit Administrators grew its position in Avis Budget Group by 102.3% during the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider’s stock worth $28,000 after buying an additional 88 shares during the period. Caitong International Asset Management Co. Ltd grew its position in Avis Budget Group by 1,845.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider’s stock worth $27,000 after buying an additional 203 shares during the period. Quarry LP acquired a new position in Avis Budget Group during the fourth quarter worth about $27,000. Basepoint Wealth LLC acquired a new position in Avis Budget Group during the fourth quarter worth about $32,000. Finally, Hantz Financial Services Inc. grew its position in Avis Budget Group by 136.4% during the third quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider’s stock worth $41,000 after buying an additional 146 shares during the period. Institutional investors and hedge funds own 96.35% of the company’s stock.

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.