Avis Budget Group Inc. [NASDAQ: CAR] price surged by 4.38 percent to reach at $1.54. The company report on October 30, 2020 that Avis Budget Group Reports Positive Earnings and Removes an Additional $1 Billion of Expenses in Third Quarter.
Avis Budget Group, Inc. (NASDAQ: CAR) today announced third quarter 2020 financial results, with Net income of $45 million and Adjusted net income of $79 million.
Despite revenue being down 44% compared to the same period in the prior year, we achieved positive Adjusted EBITDA of $220 million in the third quarter through cost removal actions and sizing fleet to demand by selling over 100,000 vehicles globally. During the quarter we removed approximately $1 billion of costs, bringing the total to $2 billion year to date, and we are now on track to deliver more than $2.5 billion of cost removal for the full year.
A sum of 3599074 shares traded at recent session while its average daily volume was at 2.40M shares. Avis Budget Group Inc. shares reached a high of $37.10 and dropped to a low of $34.0001 until finishing in the latest session at $36.70.
The one-year CAR stock forecast points to a potential upside of 7.32. The average equity rating for CAR stock is currently 2.30, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Avis Budget Group Inc. [CAR]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CAR shares is $39.60 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CAR stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Morgan Stanley have made an estimate for Avis Budget Group Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on July 02, 2020. The new note on the price target was released on May 21, 2020, representing the official price target for Avis Budget Group Inc. stock. Previously, the target price had yet another raise to $13, while JP Morgan analysts kept a Neutral rating on CAR stock.
The Average True Range (ATR) for Avis Budget Group Inc. is set at 2.21, with the Price to Sales ratio for CAR stock in the period of the last 12 months amounting to 0.32. Price to Free Cash Flow for CAR in the course of the last twelve months was 1.36 with Quick ratio for the last quarter at 1.10.
CAR Stock Performance Analysis:
Avis Budget Group Inc. [CAR] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.73. With this latest performance, CAR shares gained by 39.44% in over the last four-week period, additionally plugging by 164.03% over the last 6 months – not to mention a rise of 21.68% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CAR stock in for the last two-week period is set at 59.11, with the RSI for the last a single of trading hit 60.40, and the three-weeks RSI is set at 59.22 for Avis Budget Group Inc. [CAR]. The present Moving Average for the last 50 days of trading for this stock 32.39, while it was recorded at 36.99 for the last single week of trading, and 26.43 for the last 200 days.
Insight into Avis Budget Group Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Avis Budget Group Inc. [CAR] shares currently have an operating margin of +8.35 and a Gross Margin at +24.62. Avis Budget Group Inc.’s Net Margin is presently recorded at +3.29.
Return on Total Capital for CAR is now 4.79, given the latest momentum, and Return on Invested Capital for the company is 1.92. Return on Equity for this stock inclined to 56.45, with Return on Assets sitting at 1.40. When it comes to the capital structure of this company, Avis Budget Group Inc. [CAR] has a Total Debt to Total Equity ratio set at 2,610.06. Additionally, CAR Total Debt to Total Capital is recorded at 96.31, with Total Debt to Total Assets ending up at 71.25. Long-Term Debt to Equity for the company is recorded at 2,534.15, with the Long-Term Debt to Total Capital now at 93.51.
Reflecting on the efficiency of the workforce at the company, Avis Budget Group Inc. [CAR] managed to generate an average of $10,067 per employee. Receivables Turnover for the company is 8.27 with a Total Asset Turnover recorded at a value of 0.42.Avis Budget Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.10.
CAR Stock EPS
With the latest financial reports released by the company, Avis Budget Group Inc. posted 2.96/share EPS, while the average EPS was predicted by analysts to be reported at 3.64/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -18.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CAR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Avis Budget Group Inc. go to 5.01%.
Avis Budget Group Inc. [CAR] Insider Position Details
There are presently around $2,492 million, in the hands of institutional investors. The top three institutional holders of CAR stocks are: SRS INVESTMENT MANAGEMENT, LLC with ownership of 16,688,940, which is approximately 3.086% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 6,569,336 shares of the stock with an approximate value of $241.09 million in CAR stocks shares; and VANGUARD GROUP INC, currently with $187.58 million in CAR stock with ownership of nearly -10.366% of the company’s market capitalization.
Positions in Avis Budget Group Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 92 institutional holders increased their position in Avis Budget Group Inc. [NASDAQ:CAR] by around 12,513,818 shares. Additionally, 135 investors decreased positions by around 20,007,055 shares, while 24 investors held positions by with 35,379,436 shares. The mentioned changes placed institutional holdings at 67,900,309 shares, according to the latest SEC report filing. CAR stock had 47 new institutional investments in for a total of 6,153,669 shares, while 51 institutional investors sold positions of 8,959,983 shares during the same period.