What’s Next for Avis Budget Group Inc. After Today’s Bearish Options Activity?

 What's Next for Avis Budget Group Inc. After Today's Bearish Options Activity?

In today’s session Avis Budget Group Inc. (CAR) recorded an unusually high (640) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2016 put, expecting serious CAR decrease. With 640 contracts traded and 3724 open interest for the Dec, 16 contract, it seems this is a quite bearish bet. The option with symbol: CAR161216P00035000 closed last at: $4.2 or 7.7% up. About 630,454 shares traded hands. Avis Budget Group Inc. (NASDAQ:CAR) has risen 21.53% since March 29, 2016 and is uptrending. It has outperformed by 18.06% the S&P500.

Analysts await Avis Budget Group Inc. (NASDAQ:CAR) to report earnings on November, 7. They expect $2.35 EPS, up 18.69% or $0.37 from last year’s $1.98 per share. CAR’s profit will be $216.79M for 3.53 P/E if the $2.35 EPS becomes a reality. After $0.63 actual EPS reported by Avis Budget Group Inc. for the previous quarter, Wall Street now forecasts 273.02% EPS growth.

Avis Budget Group Inc. (NASDAQ:CAR) Ratings Coverage

Out of 7 analysts covering Avis Budget (NASDAQ:CAR), 5 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 71% are positive. $63.0 is the highest target while $29 is the lowest. The $38.57 average target is 16.28% above today’s ($33.17) stock price. Avis Budget has been the topic of 19 analyst reports since August 5, 2015 according to StockzIntelligence Inc. Macquarie Research initiated Avis Budget Group Inc. (NASDAQ:CAR) rating on Friday, August 26. Macquarie Research has “Outperform” rating and $44 price target. Barclays Capital maintained the shares of CAR in a report on Monday, February 22 with “Equal-Weight” rating. The firm earned “Buy” rating on Thursday, February 25 by M Partners. The stock has “Neutral” rating given by Goldman Sachs on Monday, October 24. Credit Suisse maintained Avis Budget Group Inc. (NASDAQ:CAR) rating on Thursday, February 25. Credit Suisse has “Outperform” rating and $38 price target. On Monday, November 16 the stock rating was maintained by Barclays Capital with “Equal Weight”. Barclays Capital maintained Avis Budget Group Inc. (NASDAQ:CAR) rating on Tuesday, September 27. Barclays Capital has “Equal Weight” rating and $37 price target. The stock of Avis Budget Group Inc. (NASDAQ:CAR) earned “Neutral” rating by JP Morgan on Wednesday, November 4. The firm earned “Buy” rating on Thursday, February 25 by Deutsche Bank. The stock of Avis Budget Group Inc. (NASDAQ:CAR) has “Equal Weight” rating given on Wednesday, August 5 by Barclays Capital.

According to Zacks Investment Research, “Avis Budget Group, Inc. is a leading provider of vehicle rental services, with operations in more than seventy countries. Through its Avis and Budget brands, the company is the largest general-use vehicle rental company in each of North America, Australia, New Zealand and certain other regions. Avis Budget Group is headquartered in Parsippany, N.J. Avis is a leading supplier to the premium commercial and leisure segments of the travel industry, and Budget is a leading supplier to price-conscious car rental segments. Avis Budget Group maintains the leading share of airport car rental revenue, and we operate the second largest consumer truck rental business in the United States. The company generate significant benefits from operating two distinctive car rental brands targeting different market segments but share the same fleet, maintenance facilities, technology and administrative infrastructure”

Insitutional Activity: The institutional sentiment decreased to 0.83 in 2016 Q2. Its down 0.23, from 1.06 in 2016Q1. The ratio worsened, as 33 funds sold all Avis Budget Group Inc. shares owned while 76 reduced positions. 37 funds bought stakes while 53 increased positions. They now own 95.80 million shares or 3.70% less from 99.49 million shares in 2016Q1.
State Of Wisconsin Inv Board accumulated 0.01% or 54,420 shares. Gamco Inc Et Al reported 8,745 shares or 0% of all its holdings. Parkwood Limited Liability accumulated 11,057 shares or 0.06% of the stock. Diamond Hill Cap Mgmt owns 5.85 million shares or 1.19% of their US portfolio. The Massachusetts-based Fmr Ltd has invested 0.01% in Avis Budget Group Inc. (NASDAQ:CAR). Bokf Na last reported 9,444 shares in the company. The New Jersey-based Ksa Capital Management Limited Liability has invested 0.66% in Avis Budget Group Inc. (NASDAQ:CAR). Gateway Inv Advisers Lc owns 261,413 shares or 0.07% of their US portfolio. Advsrs Asset Mngmt has invested 0% of its portfolio in Avis Budget Group Inc. (NASDAQ:CAR). Price T Rowe Assocs Inc Md holds 0% of its portfolio in Avis Budget Group Inc. (NASDAQ:CAR) for 359,192 shares. Apriem Advsrs owns 300 shares or 0% of their US portfolio. Advent International Corp Ma holds 0.03% of its portfolio in Avis Budget Group Inc. (NASDAQ:CAR) for 44,200 shares. Blackrock Institutional Tru Comm Na has invested 0.01% of its portfolio in Avis Budget Group Inc. (NASDAQ:CAR). Deltec Asset Llc last reported 249,980 shares in the company. Rhumbline Advisers, a Massachusetts-based fund reported 85,644 shares.

Insider Transactions: Since May 5, 2016, the stock had 1 insider buy, and 9 selling transactions for $15.82 million net activity. The insider SRS Investment Management – LLC sold 500,000 shares worth $12.70M. 738 shares were sold by Hardy John D. Jr., worth $28,332 on Thursday, August 4. On Wednesday, August 24 Linnen Edward P sold $146,760 worth of the stock or 4,000 shares. 20,000 shares were sold by Wyshner David B, worth $725,400. $60,668 worth of Avis Budget Group Inc. (NASDAQ:CAR) shares were sold by Sweeney Stender E. The insider Servodidio Mark J bought 1,900 shares worth $49,894. Shares for $250,598 were sold by Tucker Michael K.

Avis Budget Group Inc. is a provider of vehicle rental and car sharing services. The company has a market cap of $3.06 billion. The Firm operates three brands, which include Avis, Budget and Zipcar. It has a 21.16 P/E ratio. Avis is a rental car supplier and Budget is a rental vehicle supplier.

CAR Company Profile

Avis Budget Group Inc., incorporated on August 1, 1974, is a well-known provider of vehicle rental and car sharing services. The Firm operates three brands, which include Avis, Budget and Zipcar. Avis is a rental car supplier and Budget is a rental vehicle supplier. The Firm also owns Payless, which is a car rental brand, and Apex, which is a car rental brand in New Zealand and Australia. The Firm operates in two divisions: Americas and International. The Americas segment provides and licenses the Company’s brands to third parties for vehicle rentals and ancillary services and products in North America, South America, Central America and the Caribbean, and operates its car sharing business in certain of these markets. The International segment provides and licenses the Company’s brands to third parties for vehicle rentals and ancillary services and products in Europe, the Middle East, Africa, Asia, South America, Central America, the Caribbean, Australia and New Zealand, and operates its car sharing business in certain of these markets.

Another recent and important Avis Budget Group Inc. (NASDAQ:CAR) news was published by Zacks.com which published an article titled: “Avis Budget Group Banks on Strategic Plans for Growth” on October 11, 2016.

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