Avis Budget Group Inc. (NASDAQ:CAR) finished Friday with a subtraction of -$12.31 to close at $216.85, a downside of -5.37 percent. An average of 748,400 shares of common stock have been traded in the last five days. There was a fall of -$10.59 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 710,505 shares traded, while the 50-day average volume stands at 546,582.
CAR stock has decreased by -0.98% in the last month. The company shares reached their 1-month lowest point of $203.74 on 08/01/23. With the stock rallying to its 52-week high on 02/16/23, shares of the company touched a low of $131.83 and a high of $251.26 in 52 weeks. It has reached a new high 16 times so far this year and achieved 32.28% or $52.92 in price. In spite of this, the price is down -13.69% from the 52-week high.
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Insider Transactions
CAR stock investors should be aware that Avis Budget Group Inc. (CAR) stock had its last reported insider trading activity 74 days ago on Jun 13. In this transaction, the insider spent $3,021,438. Director, KROMINGA LYNN, disposed of 887 shares at a price of $226.30 on Feb 22. The insider now owns more than $200,728 worth of shares. Prior to that, EVP, Chief HR Officer Linnen Edward P went on to Sale 7,300 shares at $242.58 each on Feb 15. An amount of $1,770,834 was transacted.
Valuation Metrics
Avis Budget Group Inc. (CAR) has a trailing price-to-earnings (P/E) ratio of 4.29. The stock’s beta is 2.38. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.69.
Financial Health
The quick ratio of Avis Budget Group Inc. for the three months ended June 29 was 0.80, and the current ratio was 0.80, indicating that the company is not able to meet its debt obligations. Avis Budget Group Inc.’s EBITDA margin for the year ending June 29 is 50.81%, while its operating margin for the same period stands at 22.40%. Its gross profit as reported stood at $6.71 billion compared to revenue of $11.99 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Avis Budget Group Inc.’s return on assets was 8.00%.
Earnings Surprise
For the three-month period that ended June 29, Avis Budget Group Inc. had $4.67 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $435.0 million in the quarter, while revenues were shrunk -78.85%. The analyst consensus anticipated Avis Budget Group Inc.’s latest quarter earnings to come in at $9.45 per share, but it turned out to be $11.01, a 16.50% surprise. For the quarter, EBITDA amounted to $1.7 billion. Shareholders own equity worth $38.74 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Avis Budget Group Inc. (CAR) price momentum. RSI 9-day as of the close on 25 August was 36.85%, suggesting the stock is Neutral, with historical volatility in this time frame at 38.74%.
As of today, CAR’s price is $226.41 -4.66% or -$10.59 from its 5-day moving average. CAR is currently trading -2.51% lower than its 20-day SMA and +12.83% higher than its 100-day SMA. However, the stock’s current price level is +7.05% above the SMA50 and -9.67% below the SMA200.
The stochastic %K and %D were 46.71% and 54.91%, respectively, and the average true range (ATR) was 7.89. With the 14-day stochastic at 4.13% and the average true range at 7.64, the RSI (14) stands at 41.73%. The stock has reached 0.23 on the 9-day MACD Oscillator while the 14-day reading was at -0.68.
Analyst Ratings
Deutsche Bank downgraded Avis Budget Group Inc. (NASDAQ: CAR) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Avis Budget Group Inc. (CAR) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CAR, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.
What is CAR’s price target for the next 12 months?
Analysts predict a range of price targets between $195.00 and $319.00, with a median target of $260.00. Taking a look at these predictions, the average price target given by analysts for Avis Budget Group Inc. (CAR) stock is $255.80.
