Avis Budget Group (NASDAQ:CAR) Shares Gap Down on Disappointing Earnings

Avis Budget Group, Inc. (NASDAQ:CAR)’s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $203.88, but opened at $183.62. Avis Budget Group shares last traded at $170.46, with a volume of 712,768 shares.

The business services provider reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $2.02 by ($1.92). The company had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $3.02 billion. Avis Budget Group had a negative return on equity of 14.74% and a negative net margin of 19.06%. Avis Budget Group’s revenue for the quarter was down .3% on a year-over-year basis. During the same period last year, the firm earned $0.41 earnings per share.

Wall Street Analysts Forecast Growth

CAR has been the topic of a number of analyst reports. JPMorgan Chase & Co. lifted their price target on Avis Budget Group from $145.00 to $155.00 and gave the stock an “overweight” rating in a research note on Friday, May 9th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $196.00 price target (up from $130.00) on shares of Avis Budget Group in a research note on Thursday, July 10th. Wall Street Zen raised Avis Budget Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 3rd. Finally, The Goldman Sachs Group reduced their target price on Avis Budget Group from $100.00 to $87.00 and set a “neutral” rating on the stock in a research note on Friday, May 9th. Five analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $127.60.

Hedge Funds Weigh In On Avis Budget Group

Hedge funds have recently made changes to their positions in the business. Aster Capital Management DIFC Ltd purchased a new position in shares of Avis Budget Group during the fourth quarter valued at approximately $25,000. UMB Bank n.a. grew its stake in Avis Budget Group by 106.9% in the first quarter. UMB Bank n.a. now owns 478 shares of the business services provider’s stock worth $36,000 after purchasing an additional 247 shares during the period. Fifth Third Bancorp grew its stake in Avis Budget Group by 32.6% in the second quarter. Fifth Third Bancorp now owns 228 shares of the business services provider’s stock worth $39,000 after purchasing an additional 56 shares during the period. Quadrant Capital Group LLC grew its stake in Avis Budget Group by 41.0% in the fourth quarter. Quadrant Capital Group LLC now owns 681 shares of the business services provider’s stock worth $55,000 after purchasing an additional 198 shares during the period. Finally, Sterling Capital Management LLC grew its stake in Avis Budget Group by 41.3% in the fourth quarter. Sterling Capital Management LLC now owns 736 shares of the business services provider’s stock worth $59,000 after purchasing an additional 215 shares during the period. 96.35% of the stock is owned by hedge funds and other institutional investors.

Avis Budget Group Price Performance

The company has a market capitalization of $6.07 billion, a PE ratio of -2.73 and a beta of 2.19. The company has a 50 day moving average of $158.28 and a two-hundred day moving average of $109.24.

Avis Budget Group Company Profile

Avis Budget Group, Inc engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean.