Avis Budget Group (NASDAQ:CAR) Stock Price Down 9.7% Following Analyst Downgrade

Avis Budget Group, Inc. (NASDAQ:CAR) dropped 9.7% during mid-day trading on Friday after JPMorgan Chase & Co. downgraded the stock from a neutral rating to an underweight rating. JPMorgan Chase & Co. now has a $165.00 price target on the stock, up from their previous price target of $123.00. Avis Budget Group traded as low as $216.23 and last traded at $207.0220. Approximately 1,777,956 shares changed hands during mid-day trading, a decline of 11% from the average daily volume of 1,987,325 shares. The stock had previously closed at $229.14.

Several other equities analysts have also recently commented on the stock. Deutsche Bank Aktiengesellschaft cut shares of Avis Budget Group from a “buy” rating to a “hold” rating and set a $128.00 target price for the company. in a research report on Monday, April 6th. Weiss Ratings reiterated a “sell (d)” rating on shares of Avis Budget Group in a research report on Wednesday, January 21st. Barclays cut shares of Avis Budget Group from an “equal weight” rating to an “underweight” rating and upped their price objective for the stock from $95.00 to $150.00 in a research report on Monday. Morgan Stanley lowered their price objective on shares of Avis Budget Group from $142.00 to $97.00 and set an “equal weight” rating for the company in a research report on Friday, March 6th. Finally, The Goldman Sachs Group set a $85.00 price target on shares of Avis Budget Group in a research note on Monday, February 23rd. Three equities research analysts have rated the stock with a Hold rating and six have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Strong Sell” and an average target price of $124.00.

Insider Buying and Selling at Avis Budget Group

In other news, major shareholder Pentwater Capital Management L acquired 425,000 shares of the firm’s stock in a transaction dated Friday, February 20th. The stock was bought at an average cost of $94.26 per share, for a total transaction of $40,060,500.00. Following the completion of the transaction, the insider directly owned 3,987,100 shares in the company, valued at $375,824,046. This represents a 11.93% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Lynn Krominga sold 1,950 shares of the stock in a transaction on Friday, February 20th. The stock was sold at an average price of $91.54, for a total transaction of $178,503.00. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 50.48% of the company’s stock.

Key Avis Budget Group News

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Avis hit a new all?time high during the squeeze, showing strong retail demand and momentum before the reversal. Avis Budget (CAR) Hits New All-Time High, Stock Firm Despite ‘Sell’ Reco
• Positive Sentiment: Some legal overhang eased as investors dropped suits against management, removing a potential corporate governance distraction. Avis Budget Investors Drop Suits Against Brass Over Car Strategy
• Neutral Sentiment: Avis confirmed a Q1 2026 results date (April 29) — an upcoming catalyst that could clarify fundamentals after the volatility. Avis Budget Group to Announce First Quarter 2026 Results on April 29, 2026
• Neutral Sentiment: Multiple explainers and commentaries characterize the move as a meme?stock short squeeze driven by retail flows and options activity — useful context but not a direct fundamental change. Inside the sharp rise and fall of Avis, the market’s latest meme stock
• Neutral Sentiment: Trading was repeatedly halted today under Nasdaq LULD pauses as volatility surged, which contributed to disorderly price moves and big bid/ask gaps.
• Negative Sentiment: The short squeeze unraveled sharply, sending the stock from its intraday highs to steep losses as retail buying faded. Avis Budget (CAR) Stock Plunges 40% as Dramatic Short Squeeze Unravels
• Negative Sentiment: Analyst and market fears of a dilutive equity offering rose as the rally made such a move likely, pressuring the stock as investors priced in potential share issuance. Avis Stock Falls Again; Investors See Possible Equity Offering
• Negative Sentiment: JPMorgan downgraded CAR to underweight, increasing downside pressure by signaling professional skepticism about sustainable upside. Benzinga: JPMorgan downgrades Avis Budget
• Negative Sentiment: Coverage and market commentary highlight this as one of Avis’s most volatile, damaging sessions in decades — amplifying technical and sentiment-based selling. Avis’s stock has its worst day in 28 years

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd boosted its stake in Avis Budget Group by 1,845.5% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 214 shares of the business services provider’s stock worth $27,000 after acquiring an additional 203 shares in the last quarter. Quarry LP bought a new position in Avis Budget Group during the fourth quarter worth $27,000. Deseret Mutual Benefit Administrators boosted its stake in Avis Budget Group by 102.3% during the third quarter. Deseret Mutual Benefit Administrators now owns 174 shares of the business services provider’s stock worth $28,000 after acquiring an additional 88 shares in the last quarter. Basepoint Wealth LLC bought a new position in Avis Budget Group during the fourth quarter worth $32,000. Finally, Hantz Financial Services Inc. boosted its stake in Avis Budget Group by 136.4% during the third quarter. Hantz Financial Services Inc. now owns 253 shares of the business services provider’s stock worth $41,000 after acquiring an additional 146 shares in the last quarter. 96.35% of the stock is owned by institutional investors.

Avis Budget Group Stock Down 4.7%

The firm has a market capitalization of $7.72 billion, a P/E ratio of -8.60 and a beta of 1.94. The company’s 50 day moving average is $190.67 and its 200-day moving average is $153.02.

Avis Budget Group Company Profile

Avis Budget Group, Inc operates as a leading global provider of vehicle rental and mobility solutions. Through its two core brands, Avis® and Budget®, the company offers a broad range of rental options including daily, weekly and monthly car rentals for leisure and business travelers. In addition to traditional airport and off-airport car rental services, Avis Budget Group delivers innovative mobility platforms such as car-sharing programs and connected fleet solutions designed to meet the evolving needs of corporate, government and individual customers.

The company’s roots trace back to Avis Rent a Car, founded in 1946, and Budget Rent a Car, established in 1958.