Avis Budget Group (NASDAQ:CAR) Shares Gap Down – Here’s Why

Avis Budget Group, Inc. (NASDAQ:CAR)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $100.25, but opened at $97.52. Avis Budget Group shares last traded at $100.29, with a volume of 73,210 shares traded.

Analysts Set New Price Targets

A number of research firms recently weighed in on CAR. StockNews.com raised Avis Budget Group from a “sell” rating to a “hold” rating in a research report on Monday, November 4th. The Goldman Sachs Group lowered their price objective on Avis Budget Group from $105.00 to $90.00 and set a “neutral” rating on the stock in a research report on Friday, October 11th. Deutsche Bank Aktiengesellschaft reduced their target price on Avis Budget Group from $145.00 to $143.00 and set a “buy” rating for the company in a research report on Tuesday, November 5th. Susquehanna lowered their price target on shares of Avis Budget Group from $120.00 to $95.00 and set a “neutral” rating on the stock in a report on Friday, August 9th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Avis Budget Group from $175.00 to $150.00 and set an “overweight” rating on the stock in a research report on Monday, November 4th. Five research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $133.13.

Avis Budget Group Price Performance

The stock has a market capitalization of $3.52 billion, a P/E ratio of 9.14 and a beta of 2.14. The company’s 50 day simple moving average is $86.17 and its two-hundred day simple moving average is $96.29.

Avis Budget Group (NASDAQ:CAR) last released its quarterly earnings results on Thursday, October 31st. The business services provider reported $6.65 EPS for the quarter, missing analysts’ consensus estimates of $8.55 by ($1.90). Avis Budget Group had a negative return on equity of 101.41% and a net margin of 3.34%. The business had revenue of $3.48 billion for the quarter, compared to the consensus estimate of $3.53 billion. During the same quarter last year, the company earned $16.78 earnings per share. The firm’s revenue was down 2.4% on a year-over-year basis. On average, research analysts anticipate that Avis Budget Group, Inc. will post 5.24 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Avis Budget Group

A number of hedge funds have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC boosted its holdings in Avis Budget Group by 19,203.5% in the third quarter. International Assets Investment Management LLC now owns 481,044 shares of the business services provider’s stock valued at $421,350,000 after acquiring an additional 478,552 shares during the last quarter. Rubric Capital Management LP lifted its holdings in Avis Budget Group by 220.9% in the second quarter. Rubric Capital Management LP now owns 690,273 shares of the business services provider’s stock valued at $72,147,000 after buying an additional 475,181 shares during the period. Assenagon Asset Management S.A. bought a new position in Avis Budget Group in the second quarter valued at approximately $19,978,000. FMR LLC lifted its stake in Avis Budget Group by 4.0% in the third quarter. FMR LLC now owns 3,354,546 shares of the business services provider’s stock valued at $293,825,000 after buying an additional 129,805 shares during the period. Finally, Toronto Dominion Bank bought a new position in Avis Budget Group during the second quarter worth about $10,452,000. Institutional investors own 96.35% of the company’s stock.

Avis Budget Group Company Profile

Avis Budget Group, Inc, together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers in the Americas, Europe, the Middle East and Africa, Asia, and Australasia. It operates the Avis brand, that offers vehicle rental and other mobility solutions to the premium commercial and leisure segments of the travel industry; and the Zipcar brand, a car sharing network, as well as the Budget brand, a supplier of vehicle rental and other mobility solutions focused primarily on more value-conscious customers comprising Budget car rental, and Budget Truck, a local, and one-way truck and cargo van rental businesses with a fleet of approximately 19,000 vehicles, which are rented through a network of dealer-operated and company-operated locations that serve the light commercial and consumer sectors in the continental United States.