Avis Budget Group, Inc. (NASDAQ:CAR) Upgraded at Zacks Investment Research
Avis Budget Group, Inc. (NASDAQ:CAR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Intense competitive pressures reduce the profitability of Avis Budget and contract its market share. Volatility in market demand, foreign currency risks and dependence on third-parties remain additional headwinds, leading to a tempered guidance. High dependence on third-party distribution channels remains another challenge for Avis Budget. The company also underperformed the industry year to date. However, Avis Budget is aggressively increasing its presence in existing markets, as exemplified by the French Cars acquisition. At the same time, the company is focusing on expanding its Budget brand, taking its multi-brand strategy to the next level. The collaboration with Alphabet Inc. owned Waymo to offer support and maintenance services for Waymo’s self-driving fleet augur well for the long-term growth of the company. Sustained productivity growth and implementation of pricing initiatives remain other positives.”
A number of other brokerages have also weighed in on CAR. ValuEngine lowered Avis Budget Group from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. Credit Suisse Group decreased their target price on Avis Budget Group from $38.00 to $27.00 and set a “neutral” rating on the stock in a research note on Friday, May 5th. Raymond James Financial, Inc. upgraded Avis Budget Group from a “market perform” rating to an “outperform” rating and set a $42.00 target price on the stock in a research note on Tuesday, May 9th. BidaskClub upgraded Avis Budget Group from a “sell” rating to a “hold” rating in a research note on Saturday, June 24th. Finally, MKM Partners restated a “buy” rating and issued a $40.00 target price on shares of Avis Budget Group in a research note on Wednesday, June 28th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $36.11.
Shares of Avis Budget Group (NASDAQ:CAR) traded up 5.22% during mid-day trading on Wednesday, hitting $28.61. The company had a trading volume of 4,409,901 shares. Avis Budget Group has a 1-year low of $20.71 and a 1-year high of $41.53. The company has a market capitalization of $2.41 billion, a price-to-earnings ratio of 24.20 and a beta of 2.47. The company has a 50-day moving average price of $23.14 and a 200-day moving average price of $30.98.
Avis Budget Group (NASDAQ:CAR) last issued its quarterly earnings data on Wednesday, May 3rd. The business services provider reported ($0.94) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.51) by $0.43. The company had revenue of $1.84 billion for the quarter, compared to analysts’ expectations of $1.88 billion. Avis Budget Group had a return on equity of 74.55% and a net margin of 1.24%. The business’s revenue for the quarter was down 2.2% on a year-over-year basis. During the same period last year, the company posted ($0.28) EPS. On average, equities analysts anticipate that Avis Budget Group will post $2.91 EPS for the current year.
In other news, Director John D. Jr. Hardy sold 992 shares of the stock in a transaction dated Tuesday, May 9th. The stock was sold at an average price of $27.20, for a total transaction of $26,982.40. Following the transaction, the director now directly owns 992 shares in the company, valued at approximately $26,982.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 2.80% of the stock is currently owned by corporate insiders.
Several institutional investors have recently made changes to their positions in the stock. FNY Managed Accounts LLC purchased a new position in shares of Avis Budget Group during the first quarter valued at approximately $102,000. James Investment Research Inc. purchased a new position in shares of Avis Budget Group during the first quarter valued at approximately $113,000. World Asset Management Inc raised its position in shares of Avis Budget Group by 8.9% in the first quarter. World Asset Management Inc now owns 7,474 shares of the business services provider’s stock valued at $221,000 after buying an additional 610 shares during the period. LS Investment Advisors LLC raised its position in shares of Avis Budget Group by 27.6% in the first quarter. LS Investment Advisors LLC now owns 7,857 shares of the business services provider’s stock valued at $232,000 after buying an additional 1,699 shares during the period. Finally, ZWJ Investment Counsel Inc. purchased a new position in shares of Avis Budget Group during the first quarter valued at approximately $254,000.
Avis Budget Group Company Profile
Avis Budget Group Inc is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis and Budget are a rental car supplier. It also owns Payless, which a car rental brand; Apex, which is a car rental brand in New Zealand and Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France.
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