Stock Traders Buy High Volume of Put Options on Avis Budget Group (CAR)

Avis Budget Group Inc. (NASDAQ:CAR) was the target of some unusual options trading on Thursday. Traders purchased 11,166 put options on the company. This represents an increase of 2,221% compared to the average daily volume of 481 put options.

Shares of Avis Budget Group stock opened at $31.37 on Friday. The company has a market capitalization of $2.55 billion, a P/E ratio of 10.81 and a beta of 1.89. Avis Budget Group has a fifty-two week low of $29.94 and a fifty-two week high of $50.88. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 41.18.

Avis Budget Group (NASDAQ:CAR) last issued its quarterly earnings data on Tuesday, August 7th. The business services provider reported $0.57 earnings per share for the quarter, hitting the consensus estimate of $0.57. The company had revenue of $2.33 billion during the quarter, compared to analyst estimates of $2.39 billion. Avis Budget Group had a return on equity of 63.08% and a net margin of 4.46%. During the same period in the prior year, the business posted $0.30 earnings per share. Equities research analysts predict that Avis Budget Group will post 3.48 EPS for the current year.

CAR has been the subject of a number of analyst reports. Morgan Stanley initiated coverage on Avis Budget Group in a research report on Tuesday, June 26th. They issued an “underweight” rating and a $30.00 price target for the company. ValuEngine lowered Avis Budget Group from a “hold” rating to a “sell” rating in a research report on Monday, July 2nd. BidaskClub lowered Avis Budget Group from a “hold” rating to a “sell” rating in a research report on Friday, July 13th. Northcoast Research upgraded Avis Budget Group from a “neutral” rating to a “buy” rating and set a $46.00 price target for the company in a research report on Monday, July 30th. Finally, Zacks Investment Research lowered Avis Budget Group from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 1st. Three research analysts have rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $42.83.

In other news, Director Leonard S. Coleman, Jr. sold 13,000 shares of the company’s stock in a transaction that occurred on Friday, August 17th. The stock was sold at an average price of $34.63, for a total value of $450,190.00. Following the completion of the sale, the director now directly owns 2,339 shares in the company, valued at $80,999.57. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.60% of the stock is owned by corporate insiders.

Institutional investors have recently modified their holdings of the stock. Sei Investments Co. lifted its stake in Avis Budget Group by 12,509.1% during the first quarter. Sei Investments Co. now owns 4,161 shares of the business services provider’s stock worth $195,000 after purchasing an additional 4,128 shares in the last quarter. Cerebellum GP LLC acquired a new position in Avis Budget Group during the second quarter worth $142,000. Stifel Financial Corp acquired a new position in Avis Budget Group during the first quarter worth $240,000. Element Capital Management LLC acquired a new position in Avis Budget Group during the first quarter worth $289,000. Finally, Cornerstone Wealth Management LLC acquired a new position in Avis Budget Group during the second quarter worth $224,000.

Avis Budget Group Company Profile

Avis Budget Group, Inc, together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. It operates the Avis brand, a vehicle rental system with approximately 5,450 locations that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget brand, a vehicle rental and other mobility solutions primarily focuses on the value-conscious segments of the industry; the Zipcar brand, a membership-based car sharing network; and the Budget Truck brand, a local and one-way truck rental businesses with a fleet of approximately 19,000 vehicles, which are rented through a network of approximately 925 dealer-operated and 450 company-operated locations that serve the consumer and light commercial sectors in the continental United States.

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