Avis Budget Group Inc. (NASDAQ: CAR) stock jumped 4.82% on Friday to $180.85 against a previous-day closing price of $172.54. With 1.14 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.0 million shares. During the session, the Rental & Leasing Services company that operates in wider Industrials sector, reached to the highest price of $183.93 whereas the lowest price it dropped to was $174.01. The 52-week range on CAR shows that it touched its highest point at $545.11 and its lowest point at $74.26 during that stretch. It currently has a 1-year price target of $219.00. Beta for the stock currently stands at 2.10.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CAR was up-trending over the past week, with a rise of 15.71%, but this was up by 16.30% over a month. Three-month performance dropped to -36.61% while six-month performance rose 1.04%. The stock gained 101.35% in the past year, while it has lost -12.79% so far this year. A look at the trailing 12-month EPS for CAR yields 32.31 with Next year EPS estimates of 18.70. For the next quarter, that number is 11.48. This implies an EPS growth rate of 300.40% for this year and -50.79% for next year. EPS is expected to grow by 19.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 61.90%.
Float and Shares Shorts:
At present, 53.10 million CAR shares are outstanding with a float of 47.49 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.97 million, which was 8.23% higher than short shares on Jun 14, 2022. In addition to Mr. Bernardo Vieira Hees as the firm’s Non-Independent Exec. Chairman, Mr. Joseph A. Ferraro serves as its CEO & Pres.
Through their ownership of 109.70% of CAR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 81.49% of CAR, in contrast to 44.24% held by mutual funds. Shares owned by individuals account for 27.43%. As the largest shareholder in CAR with 38.17% of the stake, SRS Investment Management LLC holds 18,430,882 shares worth 18,430,882. A second-largest stockholder of CAR, Fidelity Management & Research Co, holds 7,247,418 shares, controlling over 15.01% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CAR, holding 4,195,045 shares or 8.69% stake. With a 4.70% stake in CAR, the Fidelity Growth Company Fund is the largest stakeholder. A total of 2,269,584 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.05% of CAR stock, is the second-largest Mutual Fund holder. It holds 990,817 shares valued at 145.73 million. Vanguard Total Stock Market Index holds 1.77% of the stake in CAR, owning 855,231 shares worth 125.79 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CAR since 5 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CAR analysts setting a high price target of $333.00 and a low target of $140.00, the average target price over the next 12 months is $217.75. Based on these targets, CAR could surge 84.13% to reach the target high and fall by -22.59% to reach the target low. Reaching the average price target will result in a growth of 20.4% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CAR will report FY 2022 earnings on 02/13/2023. Analysts have provided yearly estimates in a range of $37.67 being high and $33.57 being low. For CAR, this leads to a yearly average estimate of $35.17. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Avis Budget Group Inc. surprised analysts by $4.46 when it reported $15.94 EPS against a consensus estimate of $11.48. The surprise factor in the prior quarter was $6.54. Based on analyst estimates, the high estimate for the next quarter is $11.33 and the low estimate is $7.79. The average estimate for the next quarter is thus $10.28.
Summary of Insider Activity:
Insiders traded CAR stock several times over the past three months with 11 Buys and 3 Sells. In these transactions, 778,975 shares were bought while 669,502 shares were sold. The number of buy transactions has increased to 57 while that of sell transactions has risen to 74 over the past year. The total number of shares bought during that period was 3,248,864 while 3,188,195 shares were sold.