Avis Budget Group, Inc. (CAR) Failing To Spot These Facts

It has been reported that multiple insider activity took place at Avis Budget Group, Inc. (CAR). SVP & Chief Accounting Officer Calabria David T sold 1,700 shares for $7,661 in transaction occurred on 2018/11/27. After making this transaction, SVP & Chief Accounting Officer owns a direct stake of 23 shares, worth $276,639, as per the last closing price. On 2018/08/17 COLEMAN LEONARD S JR, Director at CAR, dumped 13,000 shares at an average price of $34.63 per share. The selling total is valued at $3,489,165.

Director, KROMINGA LYNN had divested 10,000 shares for $54,211 through a trade on 2018/06/11. Following this activity, the insider holds -10 shares worth $1,957,559 as of recent close.

iShares Core S&P Midcap ETF revealed as top hedge fund owner in Avis Budget Group, Inc. (CAR) with a stake of over 1.85M CAR shares as of February 27, with a market value of approx. $66.44M as of today. The second largest holder, Vanguard Small-Cap Index Fund, with 1.72M shares which equates to $55.24M worth of the stock. At third is Vanguard Total Stock Market Index Fund, which stood pat with 1.72M shares, a 2% position in Avis Budget Group, Inc., worth $55.2M. The insider holding in stood at 1.3% while institutions hold 0%.

Avis Budget Group, Inc. (NASDAQ:CAR) rose 1.4% in recent trade and currently has a stock-market value of $2.76B. The shares finished at $36.11, after trading as low as $35.79 earlier in the session. It hit an intraday high Friday at $37.2499. Trading activity significantly improved as the volume at ready counter increased to 1,390,415 shares versus 1,024,275 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,811,182 shares. The stock is now 66.94% above against its bear-market low of $21.63 on January 03, 2019. It has retreated -38.88% since it’s 52-week high of $50.15 reached in April. Now the market price is down -27.15% on the year and up 60.63% YTD.

CAR stock’s 50 day simple moving average (SMA 50) price is $32.99 and its 200-day simple moving average (SMA 200) price is $31.04. The company’s stock currently has a total float of 74.36M shares. Its weekly volatility is hovering around 2.96% and felt 3.04% volatility in price over a month. On the upside, the share price will test short term resistance at around $36.98. On a downside, the stock is likely to find some support, which begins at $35.52. The failure to get near-term support could push it to $34.92.

It had seen a positive analyst call from Goldman, which upgraded the stock from Sell to Buy on February 11. Analysts at Northcoast, shed their negative views on July 30 by lifting it fromNeutral to Buy. Analysts at Morgan Stanley, made their first call about the stock on June 26, recommending it is Underweight.

When looking at valuations, Avis Budget Group, Inc. (CAR) has a cheap P/E of 17.26x as compared to industry average of 27.29x. Moreover, it trades for 8.14 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 6.71x price/book and 0.3x price/sales. Compared to others, Avis Budget Group, Inc. is in a different league with regards to profitability, having net margins of 1.8%. To put some perspective around this, the industry’s average net margin is 12.96%. CAR’s ROE is 37.5%, which is also considerably better than the industry’s ROE of 10.49%. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 33.29.

Shares of CAR have gained 22.8% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Avis Budget Group, Inc. (NASDAQ:CAR) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 6 quarters (50%), whereas at 0 occasion EPS met analyst expectations. CAR last reported earnings that exceeded expectations. The company raked in $0.53 per share, -98.79% change on the same period last year. That was better than consensus for $0.37. Revenue for the recent quarter stood at $2.05 billion, up 2% on last year and above the $2.04 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.32 billion to $2.41 billion, which should be compared with $2.42 billion generated last year. EPS is seen in a range of $0.32 to $0.98, against the $0.74 reported a year ago.