Is Avis Budget Group Inc. (CAR) A Solid Choice On The Value Front?


The stock of Avis Budget Group Inc. (NASDAQ:CAR) increased by $11.17 on Friday to finish at $168.19, up 7.11 percent. The last five days have seen an average of 919,380 shares of common stock traded. 7 times new highs were reached in the current year, with a fall of -$39.18. The average number of shares traded over the last 20 days was 810,730, while the average volume over the last 50 days totaled 799,274.

CAR stock dropped -9.68% since last month. On 09/07/22, the company’s shares reached a one-month low of $149.03. The stock touched a high of $545.11 on 04/21/22, after rallying from a low of $85.68 in 52 weeks. The price of CAR stock has declined by -18.89% or -$39.18 this year, reaching a new high 7 times. Still, the stock price is down -69.15% from the 52-week high.

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Insider Transactions

There have been 40 days since Avis Budget Group Inc. (CAR) last reported insider trading activity on Aug 03. On Aug 03, Director Lurie Glenn sold 1,474 shares at $178.94 each. This transaction resulted in the insider making $263,758. On Jun 10, Hees Bernardo added 29,400 shares at a price of US$168.69. After the transaction, the insider now owns 479,876 shares. Executive Chairman Hees Bernardo had earlier bought 28,334 shares on May 24 for $172.78 a share. The transaction was completed for $4,895,558.

Valuation Metrics

Avis Budget Group Inc. (CAR) has a trailing price-to-earnings (P/E) ratio of 3.97. Beta for the stock is 2.14. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.67, and the price-to-cash flow ratio of 1.69.

Company paid $0.1070 per share in dividends, remained unchanged from $0.1070 last year.

Financial Health

For the three months ended June 29, Avis Budget Group Inc.’s quick ratio was 0.70, while its current ratio was 0.70, indicating its inability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 56.30% percent. Avis Budget Group Inc.’s operating margin stood at 27.00% for the same period. Based on annual data, it had gross profit of $5.06 billion and revenue of $9.31 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. CAR’s return on assets (ROA) during the last 12 months has been 10.10%. There was a 9.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -455.30%.

Earnings Surprise

According to Avis Budget Group Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $3.24 billion, while revenues rose by 26.91% to $2.43 billion. It was predicted that Avis Budget Group Inc.’s quarterly earnings would be $15.94, but it ended up being $11.48, beating the consensus by 38.90%. EBITDA was $1.92 billion for the quarter. At the end of Avis Budget Group Inc.’s most recent quarter ended June 29, its liabilities totaled 26.74 billion, while its total debt was $21.08 billion. Equity owned by shareholders amounts to $48.07 million.

Technical Picture

Here’s a quick look at Avis Budget Group Inc.’s (CAR) price momentum from a technical perspective. As of 09 September, the RSI 9-day stood at 49.88%, suggesting the stock is Neutral, with a 50.15% historical volatility rate.

The stochastic %K and %D were 30.93% and 18.58% respectively, while the average true range (ATR) was 8.77. Based on the 14-day stochastic reading of 49.83%, the RSI (14) reading is 48.57%. On the 9-day MACD Oscillator, the stock is at -3.34, and the 14-day reading is at -7.38.

Analyst Ratings

In its most recent analyst report, Barclays raised its rating on Avis Budget Group Inc. (NASDAQ: CAR) to an Equal weight. Prior to this, analysts firm rated the stock as an Underweight. Analysts have assigned Avis Budget Group Inc. (CAR) an Hold rating. CAR is a stock that is recommended for selling by 1 brokerage firm, while 3 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 1 other recommend it as a buy.

What is CAR’s price target for the next 12 months?

The current consensus forecast for the stock is between $150.00 and $309.00, with a median target price of $229.50. In analyzing these forecasts, the average price target given by analysts for Avis Budget Group Inc. (CAR) is $229.50.


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