Home Rental industry Avis Budget Group (NASDAQ:CAR) downgraded by Zacks Investment Research to Hold

Avis Budget Group (NASDAQ:CAR) downgraded by Zacks Investment Research to Hold

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Avis Budget Group (NASDAQ: CAR) was downgraded by Zacks Investment Research from a “strong buy” rating to a “hold” rating in a note released Monday to investors, Zacks.com reports. They currently have a price target of $207.00 on the shares of the business service provider. Zacks Investment Research’s target price suggests a potential upside of 5.99% from the current stock price.

According to Zacks, “Avis Budget’s stock has outperformed its industry over the past year, due in part to beaten earnings and revenue over the past three quarters. Its ability to meet a wide range of mobility helps it expand and strengthen its global presence through organic growth.It operates through distinct global brands that focus on different market segments and complement other brands in their respective regional markets. of its fleet and efforts to improve technology are likely to improve its offerings. On the other hand, the company faces intense competition from other players in terms of pricing in the sector of the vehicle rental The company’s rental business is subject to seasonal variations The company does not intend to pay cash dividends on common stock High indebtedness with little t limit the company’s future expansion and worsen its risk profile.

Several other research companies have also recently commented on the CAR. JPMorgan Chase & Co. downgraded Avis Budget Group from an “overweight” rating to an “underweight” rating and raised its price target for the company from $100.00 to $225.00 in a Wednesday report November 3. Bank of America downgraded Avis Budget Group from a “buy” rating to a “neutral” rating and raised its price target for the stock from $125.00 to $200.00 in a Thursday, October 28 report . Barclays downgraded Avis Budget Group from an ‘equal weight’ rating to an ‘underweight’ rating and raised its price target for the stock from $125.00 to $217.00 in a report Tuesday, November 16. Morgan Stanley raised its price target on Avis Budget Group from $140.00 to $170.00 and gave the stock an “underweight” rating in a Monday, November 15 report. Finally, Deutsche Bank Aktiengesellschaft upgraded Avis Budget Group from a “sell” rating to a “hold” rating and set a price target of $210.00 for the company in a Thursday, January 6 report. Three equity research analysts rated the stock with a sell rating and three assigned the stock a hold rating. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $204.83.

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CAR shares opened at $195.31 on Monday. The stock has a market capitalization of $11.02 billion, a price/earnings ratio of 15.80, a PEG ratio of 0.48 and a beta of 2.06. Avis Budget Group has a 12-month low of $37.11 and a 12-month high of $545.11. The company has a fifty-day simple moving average of $242.42 and a 200-day simple moving average of $158.51. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt ratio of 159.62.

Avis Budget Group (NASDAQ:CAR) last released its quarterly earnings data on Monday, November 1. The business services provider reported EPS of $10.74 for the quarter, beating the Zacks consensus estimate of $6.90 by $3.84. The company posted revenue of $3 billion in the quarter, versus a consensus estimate of $2.77 billion. Avis Budget Group achieved a net margin of 10.04% and a negative return on equity of 729.29%. The company’s quarterly revenue increased 95.6% year over year. During the same period a year earlier, the company posted EPS of $1.13. As a group, research analysts predict that Avis Budget Group will post earnings per share of 22.35 for the current financial year.

In other news, Executive Vice Chairman Edward P. Linnen sold 8,300 shares of Avis Budget Group in a trade that took place on Friday, November 5. The shares were sold at an average price of $272.14, for a total value of $2,258,762.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, accessible via this hyperlink. Additionally, CAO Cathleen Degenova sold 250 shares of Avis Budget Group in a trade that took place on Friday, November 5. The shares were sold at an average price of $272.14, for a total transaction of $68,035.00. The disclosure of this sale can be found here. Insiders sold 59,600 shares of the company valued at $16,388,012 in the past 90 days. Insiders of the company hold 27.40% of the shares of the company.

Hedge funds and other institutional investors have recently increased or reduced their stakes in the company. First Trust Advisors LP increased its position in Avis Budget Group by 13.2% in the first quarter. First Trust Advisors LP now owns 37,787 shares of the business services provider valued at $1,317,000 after buying an additional 4,400 shares in the last quarter. Russell Investments Group Ltd. increased its stake in shares of Avis Budget Group by 12.0% in the second quarter. Russell Investments Group Ltd. now owns 9,160 shares of the business services provider worth $711,000 after purchasing an additional 982 shares in the last quarter. Envestnet Asset Management Inc. acquired a new position in Avis Budget Group in the second quarter worth $204,000. The State Board of Administration of Florida Retirement System increased its stake in Avis Budget Group by 1.3% in the second quarter. The Florida Retirement System State Board of Directors now owns 20,355 shares of the business services provider worth $1,585,000 after purchasing an additional 270 shares during the period. Finally, BNP Paribas Arbitrage SA increased its stake in Avis Budget Group by 130.0% in the second quarter. BNP Paribas Arbitrage SA now owns 30,670 shares of the business services provider valued at $2,389,000 after purchasing an additional 17,334 shares during the period. Institutional investors hold 95.78% of the company’s shares.

Avis Budget Group Company Profile

Avis Budget Group, Inc provides car sharing and rental services. It operates through the Americas and International segments. The Americas segment licenses the company’s brands to third parties for vehicle rental and ancillary products and services in North America, South America, Central America and the Caribbean.

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Analyst Recommendations for Avis Budget Group (NASDAQ: CAR)

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