Avis Budget Group Inc. [NASDAQ: CAR] stock went on an upward path that rose over 10.67% on Friday, amounting to a one-week price increase of more than 14.04%. The company report on February 18, 2021 that Avis Budget Group Announces Pricing of $600 Million of Senior Notes.
Avis Budget Group, Inc. (NASDAQ: CAR) announced that its wholly-owned subsidiaries, Avis Budget Car Rental, LLC and Avis Budget Finance, Inc. (together, the “Issuers”) priced an offering of $600 million aggregate principal amount of 5.375% senior notes due 2029 (the “Notes”) in a private offering. The Notes will have a maturity date of March 1, 2029. The closing of the offering of the Notes is expected to occur on March 1, 2021, subject to customary closing conditions. The Notes will be issued at par and guaranteed on a senior unsecured basis by the Company and certain of its U.S. subsidiaries.
The Company intends to use the net proceeds from the Notes offering, together with cash on hand, to redeem all of the Issuers’ outstanding 10.500% senior secured notes due 2025 and pay related premium, fees and expenses.
Over the last 12 months, CAR stock dropped by -3.16%. The one-year Avis Budget Group Inc. stock forecast points to a potential upside of 5.34. The average equity rating for CAR stock is currently 2.10, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $3.08 billion, with 69.60 million shares outstanding and 68.42 million shares in the current float. Compared to the average trading volume of 1.41M shares, CAR stock reached a trading volume of 2770445 in the most recent trading day, which is why market watchdogs consider the stock to be active.
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 $51.50 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 2.10. 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.
BofA Securities have made an estimate for Avis Budget Group Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 25, 2021. The new note on the price target was released on July 02, 2020, representing the official price target for Avis Budget Group Inc. stock. Previously, the target price had yet another raise to $15, while Morgan Stanley analysts kept a Equal-Weight rating on CAR stock.
The Average True Range (ATR) for Avis Budget Group Inc. is set at 3.09, with the Price to Sales ratio for CAR stock in the period of the last 12 months amounting to 0.57. Price to Free Cash Flow for CAR in the course of the last twelve months was 5.15 with Quick ratio for the last quarter at 0.90.
CAR Stock Performance Analysis:
Avis Budget Group Inc. [CAR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.04. With this latest performance, CAR shares gained by 18.27% in over the last four-week period, additionally plugging by 48.49% over the last 6 months – not to mention a drop of -3.16% 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 67.06, with the RSI for the last a single of trading hit 70.23, and the three-weeks RSI is set at 64.64 for Avis Budget Group Inc. [CAR]. The present Moving Average for the last 50 days of trading for this stock 39.89, while it was recorded at 45.21 for the last single week of trading, and 31.81 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 -5.55 and a Gross Margin at +11.07. Avis Budget Group Inc.’s Net Margin is presently recorded at -12.66.
Return on Total Capital for CAR is now -1.92, given the latest momentum, and Return on Invested Capital for the company is -4.52. Return on Equity for this stock declined to -273.05, with Return on Assets sitting at -3.22. Additionally, CAR Total Debt to Total Capital is recorded at 101.15, with Total Debt to Total Assets ending up at 74.22.
Reflecting on the efficiency of the workforce at the company, Avis Budget Group Inc. [CAR] managed to generate an average of -$34,200 per employee. Receivables Turnover for the company is 5.75 with a Total Asset Turnover recorded at a value of 0.25.Avis Budget Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.
CAR Stock EPS
With the latest financial reports released by the company, Avis Budget Group Inc. posted -1.4/share EPS, while the average EPS was predicted by analysts to be reported at -1.84/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 23.90%. 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 3.99%.
Avis Budget Group Inc. [CAR] Insider Position Details
There are presently around $3,376 million, in the hands of institutional investors. The top three institutional holders of CAR stocks are: SRS INVESTMENT MANAGEMENT, LLC with ownership of 18,430,882, which is approximately 2.118% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 6,559,396 shares of the stock with an approximate value of $319.77 million in CAR stocks shares; and NOMURA HOLDINGS INC, currently with $250.92 million in CAR stock with ownership of nearly 2.223% of the company’s market capitalization.
Positions in Avis Budget Group Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 101 institutional holders increased their position in Avis Budget Group Inc. [NASDAQ:CAR] by around 6,744,558 shares. Additionally, 137 investors decreased positions by around 6,770,076 shares, while 41 investors held positions by with 55,734,133 shares. The mentioned changes placed institutional holdings at 69,248,767 shares, according to the latest SEC report filing. CAR stock had 47 new institutional investments in for a total of 895,598 shares, while 41 institutional investors sold positions of 1,731,497 shares during the same period.