Avis Budget Group (NASDAQ:CAR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Avis Budget intends to aggressively increase the number of company-operated locations in fast-growing markets. Fundamental drivers such as sustained productivity growth, pricing initiatives and potential revenue-generating synergies from its various acquisitions bode well for the future. Projected strong travel trends for both leisure and commercial travelers and sustained expansion of these trends are likely to enhance its operational foothold in global markets through Avis Budget’s various acquisitions and collaborations. It outperformed the industry in the last three months. However, Avis Budget continues to face hurdles like high fleet costs and stiff competition from other players in the market, mainly on grounds of pricing. The company faces the risk of losing rental volumes if it is unable to match up to industry pricing standards. Volatility in market demand, foreign currency risks and dependence on third-parties remain headwinds.”
Several other equities analysts have also recently weighed in on the stock. Northcoast Research reaffirmed a “buy” rating on shares of Avis Budget Group in a research note on Tuesday, November 7th. BidaskClub cut shares of Avis Budget Group from a “strong-buy” rating to a “buy” rating in a research note on Friday, November 3rd. ValuEngine raised shares of Avis Budget Group from a “hold” rating to a “buy” rating in a research note on Monday, December 11th. TheStreet raised shares of Avis Budget Group from a “c” rating to a “b-” rating in a research note on Friday, November 10th. Finally, MKM Partners raised their target price on shares of Avis Budget Group from $36.00 to $49.00 and gave the company a “buy” rating in a research note on Thursday, October 12th. One research analyst has rated the stock with a sell rating, five have given a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus target price of $37.70.
Avis Budget Group (NASDAQ:CAR) last announced its quarterly earnings data on Monday, November 6th. The business services provider reported $3.10 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.99 by $0.11. The firm had revenue of $2.75 billion during the quarter, compared to analysts’ expectations of $2.78 billion. Avis Budget Group had a net margin of 1.26% and a return on equity of 95.28%. The company’s revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period in the prior year, the company posted $2.47 earnings per share. sell-side analysts expect that Avis Budget Group will post 2.65 earnings per share for the current fiscal year.
In other Avis Budget Group news, Director John D. Jr. Hardy sold 831 shares of the stock in a transaction on Friday, November 10th. The shares were sold at an average price of $35.36, for a total transaction of $29,384.16. Following the completion of the transaction, the director now owns 831 shares in the company, valued at $29,384.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP David T. Calabria sold 1,250 shares of the stock in a transaction on Friday, December 8th. The shares were sold at an average price of $41.71, for a total transaction of $52,137.50. Following the transaction, the senior vice president now owns 4,412 shares of the company’s stock, valued at approximately $184,024.52. The disclosure for this sale can be found here. Insiders have sold 489,581 shares of company stock valued at $19,782,022 in the last quarter. 2.80% of the stock is owned by company insiders.
Hedge funds have recently added to or reduced their stakes in the business. CNA Financial Corp bought a new position in Avis Budget Group during the third quarter valued at $945,000. 1060 Capital LLC bought a new position in Avis Budget Group during the third quarter valued at $25,874,000. Eqis Capital Management Inc. bought a new stake in shares of Avis Budget Group in the 3rd quarter worth about $380,000. Pacer Advisors Inc. lifted its holdings in shares of Avis Budget Group by 85.8% in the 3rd quarter. Pacer Advisors Inc. now owns 17,209 shares of the business services provider’s stock worth $655,000 after acquiring an additional 7,948 shares during the last quarter. Finally, Ameritas Investment Partners Inc. lifted its holdings in shares of Avis Budget Group by 25.9% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 31,925 shares of the business services provider’s stock worth $871,000 after acquiring an additional 6,576 shares during the last quarter.
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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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